Indian Wind Power Sector to Benefit From US-China Tariff Scuffle : Wood Mackenzie

Adani Green's 130 MW Wind Project Commissioned in Gujarat

The assumption comes from a new report released by global research and consultancy firm Wood Mackenzie.

India’s wind energy sector could benefit in the form of new investments as the ongoing tariff scuffle between US and China continues to escalate.

The assumption comes from a new report released by global research and consultancy firm Wood Mackenzie. Which also points out that turbine OEMs and suppliers are expected to flood the market with investments in new facilities and capacity expansion to serve both domestic and export markets, including the US.

As such, the increase in project average Megawatt (MW) size across global markets will favour this trend due to economies of scale, it said. Turbine OEMs continue to leverage independent suppliers to out-source component manufacturing, while the component design continues to move inwards.  

“After exploiting the low-cost footprint advantage in China, Western turbine OEMs are now searching for out-sourcing partnerships with Chinese component suppliers as a way to squeeze costs further,” said Shashi Barla, senior analyst, Wood Mackenzie Power & Renewables. 

Offshore wind growth in Asian markets will facilitate expansion opportunities for independent blade suppliers, as western markets are primarily served by turbine OEMs in-house capacity. “As blade length increases on next-generation turbines, carbon fiber utilization for structural blade support is expected to increase its share of the market, from 25 percent in 2018 to around 57 percent by 2027, due to support light-weighting and other advanced properties,” Barla added.

In the corporate space, China’s NGC currently dominates the domestic Chinese gearbox market. WoodMac said turbine OEMs will likely scout for new suppliers in order to fend off the threat from growing NGC dominance.