Suzlon’s Order Book Changes- A Sign Of Things To Come?

Suzlon's Order Book Changes- A Sign Of Things To Come

In the wake of some wind project developers pulling back on orders, Indian wind turbine manufacturer Suzlon has faced challenges. The leading Indian wind energy manufacturer surprised market watchers last Friday by announcing the cancellation and reduction of three significant orders.

Order Cancellations and Reductions

In its latest regulatory filing before the stock exchange, Suzlon admitted to order cancellations due to developers deciding not to proceed with their proposed wind energy projects, or cutting back as seen for O2 power.

One of the major setbacks involved Vibrant Energy, which had placed an order for 99 MW of wind turbines from Suzlon. The company has now decided not to move forward with this plan. The announcement for the same was initially made on May 17, 2023.

“In continuation of our announcement dated May 17, 2023, titled ‘Suzlon secures a new order of 99 MW from Vibrant Energy,’ we inform that the customer has decided not to proceed with the project. Hence, the said order stands canceled,” Suzlon stated.

Additionally, Suzlon reported that an earlier order of 201.6 MW from O2 Power has been reduced to 100.80 MW.

“Further, in continuation of our announcement dated August 25, 2023, titled ‘Suzlon wins a 201.6 MW order from O2 Power Private Limited (Teq Green Power XI Private Limited),’ the said order has been reduced to 100.80 MW and will now be executed under the name of Solalite Power Private Limited instead of Teq Green Power XI Private Limited,” the company confirmed.

Another Major Cancellation

The firm also faced another setback with the cancellation of an additional 100.8 MW order for its 3 MW wind turbine series from a global company. In total, Suzlon has seen a cumulative loss of 300.6 MW in recent project orders.

Current Order Book Status

As of January 28, 2025, the company’s order book stood at 5,523 MW. However, after factoring in new orders, cancellations, and adjustments, the revised order book as of March 28 stood at 5,622 MW. More cancellations could further impact the publicly listed company, potentially affecting its stock prices.

Despite the loss of about 300 MW in orders, Suzlon maintains that its overall order book remains healthy.

Industry Concerns and Market Impact

Market watchers are concerned because all the affected orders were placed in 2023, a period when execution work should have been actively progressing. This has raised scrutiny over other orders announced in 2023 and early 2024 regarding their execution status and potential changes.

Many wind energy projects are now facing challenges due to rising tariffs and other regulatory issues. Further order cancellations could pressure not just Suzlon but also other wind turbine manufacturers operating in India, such as Inox Wind and Senvion.

In its last investor call for Q3 FY25, Suzlon stated that its order book stood at 5.5 GW. The company had previously expressed confidence in its ‘historic order’ pipeline, expecting to enter the new financial year with orders sufficient to sustain operations throughout the year and well beyond. For the record, total wind capacity added in Fy 2025 was 2702 MW till February, with final March numbers awaited. With a collective order book position of almost 10 GW across the key wind energy players, the situation is considered the brightest it has been in the past few years.