The Hindu Business Line : Suzlon plans to diversify into solar, bio-diesel biz

Mumbai March 8 Suzlon Energy Ltd has plans to diversify into the solar and bio-diesel business within four years. The company expects that this move would produce the right synergies with its existing business in the wind energy space.

At present, the diversification plans are still at a conception stage, Mr Tulsi Tanti, Chairman and Managing Director of the company, said.

Talking to Business Line, Mr Tanti said that the vacant land available at its wind farms could be used for putting up solar panels with a capacity ranging from 10 to 20 MW. The solar power can further be connected to the State power grid. The land at the wind farm could also be used for growing feedstock for bio-diesel. The ability to produce bio-diesel will depend on land and water availability at the farm, Mr Tanti said.

Mr Tanti said that significant savings can be achieved in new alternative energy business, as the company will not have to incur additional 20 per cent infrastructure cost. The existing power lines and substations at the wind farm might be used for transmitting power, he said.

Suzlon has wind farms across eight states in India and an installed capacity of 2,000 MW. It has development rights on all its wind farms.

REpower acquisition

Mr Tanti said that Suzlon was very close to acquiring German wind energy firm REpower. The supervisory and management board of REpower Systems AG have approved the takeover price of 126 euros per share, which equals to a total value of 1.02 billion euros, he said.

French nuclear power company Areva is also a strong contender for the German wind power company. Suzlon is bidding for REpower through Suzlon Windenergie GmbH, which is a joint venture company between Suzlon Energy Ltd and the Portuguese steel and metal building company Martifer, which owns 25.4 per cent of the REpower shares.

Repower, in a statement to the media, said that the Board has found Suzlon an appropriate strategic partner for the accelerated growth of the international wind energy industry and the offer is 21 euros higher than Areva's competing offer, which offered a price of 105 euros per share, the statement said.

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