Australia delivers a windfall for Indian wind turbine maker Suzlon

Indian wind turbine maker Suzlon is bringing the winds of change to Australia. Since setting up in 2004, Suzlon Energy Australia (SEA) has installed 364 wind turbine generators (WTGs) with a total capacity of approximately 764 MW. These WTGS are found across 9 wind farms in New South Wales, Victoria and South Australia.

Today, SEA is among the top 3 wind solution providers in Australia with a 17% share of the market. The company employed more than 300 people and counts AGL Energy, Tilt Renewables, Pacific Hydro, Infigen and Palisade as clients. It is involved in large-scale projects, including AGL’s Hallett Wind Farm in South Australia and Infigen Energy’s Capital Wind Farm in New South Wales.

‘Australia is one of Suzlon’s most important markets,’ says Tejjas Parmar, CEO – International Business, Suzlon Energy Australia. ‘We are proud to support Australia’s transition to renewable energy.’

From textiles to wind turbines

In the 1990s, Suzlon founder Tulsi Tanti was working at his family’s textile factory. To counter rising power prices, he invested in 2 European-made wind turbines to generate electricity. However, the turbine manufacturers did not provide turnkey solutions. Tanti had to install and commission the wind turbines himself, despite having no experience.

Tanti saw a gap in the market to manufacture, install and commission wind turbines. In 1995, he founded Suzlon with an initial investment of $600,000. The company’s first project was a 2.34 MW wind farm project in Gujarat. Suzlon has since delivered 13,005 WTGs across 17 countries with the capacity to generate over 20 GW of energy. The company estimates its WTGs remove the equivalent of 52.37 million tonnes of CO₂ emissions every year.

Today, Suzlon is India’s leader and one of the world’s largest wind turbine makers and renewable energy solution providers. The company has a presence in 17 countries and employs around 6,300 people. It has 11 manufacturing facilities in India and 8 research and development centres across Germany, India, Denmark and the Netherlands.

Investing in Australia’s untapped wind resources

In 2004, Suzlon Energy Australia (SEA) set up in Melbourne, Victoria as part of its larger globalisation strategy. The company had identified Australia as one of the world’s largest untapped wind generation markets. Wind power is a leading source of clean energy in Australia. In 2023, wind accounted for 31.9% of the country’s total renewable energy and 12% of electricity (Source: Why Australia Benchmark Report, 2024, pg. 19).

The decision was timely, as the Victorian Government had launched a renewable energy policy that was investment-friendly for new entrants. Victoria is also a hub for energy developers in Australia, meaning Suzlon could operate near its customers and competitors.

Parmar says patience is key to success in the Australian market. ‘Australian companies will only make a decision after they have thoroughly assessed a product or service. Building trust with stakeholders is crucial to winning the market.

‘Indian companies should also make sure they have a business model that caters to market needs,’ he adds. ‘Factor in labour costs and plan to invest for the long term.’

Putting customer needs first

SEA offers end-to-end services, from engineering, procurement and construction to operations and maintenance for the full lifecycle of its WTGs. It has customised services for the Australian market.

‘Our approach provides comfort for our customers,’ says Parmar. ‘We do everything for our clients. We identify the sites, conduct the wind measurement studies, manage the budgeting, and build the substations and grid connections. Then we take responsibility for 20 to 25 years of operations and maintenance. We have a quick response mechanism to any issues.

‘This is a real source of sustainable competitive advantage,’ says Parmar. ‘This allows our customers to focus on their main business, while ensuring a reliable, cost-efficient source of power.’

Every SEA wind farm has been built using workers from local communities. This has resulted in more than 325 permanent positions and over 500 jobs in construction, spread across 9 wind farms. The company has also provided skills training for local employees and contractors, improving Australia’s long-term skills base.

Austrade assistance

Suzlon is one of the key Indian investors in the Australian renewable energy sector. Austrade has been providing connections, advice and support to help Suzlon expand its footprint for many years.

Austrade also works closely with Suzlon in India to showcase Australian technologies and capabilities to enhance competitiveness. These include introductions to Australian companies with green economy solutions, to explore potential areas of collaboration in energy modelling and optimisation.

Austrade has also arranged introductions to Australian vocational learning providers that Suzlon can collaborate with to address skills gaps in Indian wind industry.

Australia’s renewables opportunities

Parmar believes Australia has a ‘sunny and windy’ future, in light of the country’s many renewable energy projects and government support for the renewables transition.

‘Australia’s enormous renewable energy resources mean it has the potential to become a net exporter of energy to rest of the world,’ he says. ‘The onshore wind potential is huge and is still maturing, and is supported by the nascent offshore wind sector.’

Australia is a top-tier location for investment in renewable energy. EY ranked Australia the fifth most attractive destination in the world for renewable energy investment in 2023.

Australia is investing in utility-scale solar, onshore and offshore wind projects and has a pipeline of energy storage and transmission projects to meet its legislated goal of net zero emissions by 2050.

There is a range of incentives and grants available to support renewable energy projects, including the Capacity Investment Scheme. The scheme encourages new investment in renewable capacity, such as wind and solar, as well as clean dispatchable capacity, such as battery storage.