Suzlon Case Analysis
Suzlon Energ Ltd – Maki For Abr n gy ing ray road
A Ca ase Stud dy Q1. H How do you u analyze the e attractiven ness of the I Industry? Sh hould Suzlon n expect mo ore competit tors in days to co ome? How s should it pre epare itself f for it?
The W Wind Power I Industry is very attractive. Though wind d currently pr roduces just o over 1% of wo orld‐wide ele ectricity use, there e is an estima ated 72 TW of f wind energy y on the Earth h equivalent t to 54,000 MT ToE (million to ons of oil equ uivalents) per year that potentia ally can be commercially viable. The gro owth in the in ndustry is being driven by a number of factors: 1 1. 2 2. 3 3. 4 4. The energ gy supply and d demand. The growing focus on e environmenta al issues, especially climat te change. The advan ncements in t the technolog gy Governme ent Support
Supply & Demand
Technolo ogy
Growth in Wind Power
Environ nment
Government
Gro owth Factors o of the Wind Po ower Industry
1 Energy su 1. upply and dem mand By 20 030, it is estim mated that th he world ener rgy needs wou uld be betwe een 30 and 60 0 % higher tha an the curren nt levels. The IEA e estimates that t around 4,50 00 GW of new w energy capa acity needs to o be installed before 2030, requiring inv vestments of mo ore than US$ 13 trillion. Th his increase in demand wo ould require s significant inv vestment in n new power ge enerating capacity, especially in emerging economies like China & India. In Indu ustrialized nat tions, on the other hand, w while demand d is inc creasing, the d days of overc capacity in ele ectricity production are co oming to an end. And just a as energy dem mand conti inues to incre ease, supplies s of the main fossil fuels us sed in power generation a are becoming more expens sive and more e difficult to e extract.
In contrast to the uncertainties surrounding supplies of conventional fuels, and volatile prices, wind energy is a massive indigenous power
A Ca ase Stud dy Q1. H How do you u analyze the e attractiven ness of the I Industry? Sh hould Suzlon n expect mo ore competit tors in days to co ome? How s should it pre epare itself f for it?
The W Wind Power I Industry is very attractive. Though wind d currently pr roduces just o over 1% of wo orld‐wide ele ectricity use, there e is an estima ated 72 TW of f wind energy y on the Earth h equivalent t to 54,000 MT ToE (million to ons of oil equ uivalents) per year that potentia ally can be commercially viable. The gro owth in the in ndustry is being driven by a number of factors: 1 1. 2 2. 3 3. 4 4. The energ gy supply and d demand. The growing focus on e environmenta al issues, especially climat te change. The advan ncements in t the technolog gy Governme ent Support
Supply & Demand
Technolo ogy
Growth in Wind Power
Environ nment
Government
Gro owth Factors o of the Wind Po ower Industry
1 Energy su 1. upply and dem mand By 20 030, it is estim mated that th he world ener rgy needs wou uld be betwe een 30 and 60 0 % higher tha an the curren nt levels. The IEA e estimates that t around 4,50 00 GW of new w energy capa acity needs to o be installed before 2030, requiring inv vestments of mo ore than US$ 13 trillion. Th his increase in demand wo ould require s significant inv vestment in n new power ge enerating capacity, especially in emerging economies like China & India. In Indu ustrialized nat tions, on the other hand, w while demand d is inc creasing, the d days of overc capacity in ele ectricity production are co oming to an end. And just a as energy dem mand conti inues to incre ease, supplies s of the main fossil fuels us sed in power generation a are becoming more expens sive and more e difficult to e extract.
In contrast to the uncertainties surrounding supplies of conventional fuels, and volatile prices, wind energy is a massive indigenous power
References: Prepared By: Roll No B12070 1. GWEC website: http://www.gwec.net ALOK THAPLIYAL 2. http://www.prnewswire.com Section B