Wedoany.com Report-Mar 28, Asset manager TPG has agreed to acquire a 90% stake in Siemens Gamesa’s onshore wind turbine generator manufacturing business in India and Sri Lanka.
Under the transaction, the companies will form a new company, in which Siemens Gamesa will continue to hold a minority stake.
The wind turbine manufacturer will transfer approximately 1,000 employees and two manufacturing plants to the new company while continuing to exclusively license its intellectual property and technology for the new company.
According to the company statement, the financial details will not be disclosed and the transaction is subject to customary closing and regulatory approvals.
According to Siemens Gamesa, the firm is not in a position to capitalise on the growing market opportunities India has to offer. With the country set to add about 57GW of capacity by 2032, TPG is better positioned to leverage its financial strength and experience and develop the growing market opportunities.
Vinod Philip, member of the Board of Siemens Energy and responsible for Siemens Gamesa, commented on the announcement: “India is and remains an attractive market for wind energy, with significant growth potential. However, after thorough analysis, we have determined that our new partners led by TPG are the optimal owners to harness this potential. The new company will serve the Indian market more effectively while also offering a long-term perspective for employees and customers. This ensures continued support and development in this vibrant market, while Siemens Gamesa can concentrate on other core markets.”
TPG’s investment will be made through TPG Rise Climate, its dedicated climate investing platform, and the transaction will serve as the inaugural investment from its Global South Initiative, a private equity strategy launched at COP28 in partnership with private investment vehicle ALTÉRRA.
Prashant Jain, former CEO of JSW Energy, will take a minority stake as Climate Change Partner in the venture, with MAVCO Investments also making a minority investment.
Said Ankur Thadani, partner at TPG and Head of Climate, Asia: “Siemens Gamesa has built a leadership position in India’s onshore wind market, and we look forward to partnering with them, MAVCO, and Prashant to build on their success. We believe onshore wind will continue to play an increasing role in India’s green energy mix and this new platform, with Siemens Gamesa’s world-class product manufacturing and service offering, and the backing of TPG and MAVCO will continue to accelerate the delivery of gigawatts of clean power to millions of Indians across the socio-economic spectrum.”
Siemens Gamesa currently holds a market share in India of ~30% and has a cumulative installation base of almost 10GW.
India’s wind potential
According to the Global Wind Energy Council, India is the world’s fourth-largest onshore wind market by cumulative installations with nearly 38GW capacity.
India has set a renewable energy target of 500GW of clean energy sources by the year 2030, out of which 14GW will be coming from wind power. To meet these targets, the government has established favourable policies to boost investment in upcoming wind power projects, resulting in the reduced cost of wind energy. Due to these factors, Mordor Intelligence predicts a minimum of an 8% CAGR between 2025 and 2030.
In a country focused report, Ember states that by 2030, 21 out of 27 Indian states plan to contract more than 100GW of wind. Even states with little or no wind potential, such as Odisha, Jharkhand, Punjab, and Bihar, are planning to include wind in their energy supply mix.
India’s power sector is witnessing a significant transformation, with solar capacity growing multifold to daytime electricity demand. However, during non-solar hours, the supply of green electricity drops significantly and thermal resources continue to fill the gap. This makes wind an attractive alternative to fill the gaps when solar is unavailable and is resulting in a growing number of hybrid wind and solar tenders states Ember.
