Suzlon Energy is looking to move beyond its traditional wind turbine manufacturing business and build a full-stack renewable energy platform spanning wind, solar, battery storage, project development and asset management, as it seeks to tap the next phase of growth in the renewable energy market.
In his letter to shareholders, Suzlon Group CEO Ajay Kapur said the company was preparing for a shift in the renewable energy market towards systems capable of delivering affordable, predictable and round-the-clock clean power. The company has accordingly reorganised its business under four verticals — RE Tech, RE DevCo, RE Projects and RE Asset Management Services (AMS).
The strategy, dubbed ‘Suzlon 2.0’, is built around four priorities: creating a standalone project-development business across wind, solar and battery energy storage systems; turning its operations and maintenance business into a digital-first platform; developing smart manufacturing capabilities; and a structured expansion into international markets. The company also plans to remain asset-light while focusing more closely on order-book quality and portfolio profitability.
The company's strategy reflects a broader change in the renewable energy market, where developers are increasingly looking for firm and dispatchable power rather than standalone renewable generation.
Suzlon plans to use its new RE DevCo business to develop shovel-ready projects, covering areas such as land acquisition and grid approvals. Its RE Projects vertical will then provide engineering, procurement and construction capabilities for integrated wind, solar and storage projects.
The company believes combining wind, solar and storage can help meet the growing demand for reliable renewable power. It is also positioning itself for hybrid and firm and dispatchable renewable energy (FDRE) projects, which are becoming increasingly important in India's power procurement market.
The opportunity is sizeable. Suzlon estimates India will require more than 130 GW of wind capacity by 2030 to meet non-solar peak demand. However, the company sees land acquisition, manpower, infrastructure and grid connectivity as key bottlenecks that need to be addressed to convert demand into actual installations.
Suzlon is also preparing for a calibrated return to international markets, with Europe emerging as its initial focus.