The deal, the largest one of its kind ever signed in India, encompasses the delivery, installation and start-up of Gamesa's G58-850 kW and G97-2.0 MW turbines between 2012 and 2016.
The turbines will be manufactured at Gamesa factories in India, and the deal enables Gamesa to sell its first G97-2.0 MW turbines in India.
The contract calls for Gamesa to supply Caparo Energy with about 150 MW of turbine capacity in 2012.
"This long-term agreement with Caparo Energy illustrates the soundness of Gamesa's commercial approach in the Indian market, which leverages our experience and commitment to manufacturing and energy efficiency to enable us to offer viable, profitable solutions for an energy source that is not only sustainable and clean, but that also guarantees a safe supply of energy," said Jorge Calve, Gamesa’s Chairman and CEO.
Gamesa previously announced that it will invest more than $85.4 million (€60 million) through 2012 to build three plants to meet booming demand in the Indian market.
After only 18 months in India, Gamesa has become the country’s No. 3 wind energy manufacturing group.
"This is an important relationship with a strong and committed partner that will help us move into the next phase of our wind farm development and roll out in India," said Caparo Energy India Limited Chief Executive Ravi Kailas. "This agreement with Gamesa will be a significant step in meeting the long term development goals of our company."
The deal represents a turning point in the Indian wind energy market and heralds further progress in the industry's rapid growth in India. Wind turbine capacity totalling 2.5 GW was installed in 2010, and the country's targets call for the installation of 5 GW per year through 2015.
Forecasts suggest that combined installed capacity at wind farms in India may amount to 64 GW by 2020.
The wind sector in India has been growing at 30 percent to 40 percent per annum in the past five years and the growth rate is expected to increase significantly in the coming years. Also, the future market will predominantly have more IPPs developing wind farms where the key drivers for the growth are higher IRR and tax incentives.
"This order underlines the acceptance of wind energy as a viable and profitable solution to meet the increasing appetite among corporations for reducing their carbon footprint and meeting energy needs through sustainable energy sources,” said Gamesa India Chairman and Managing Director Ramesh Kymal. “Gamesa is glad to be bringing to India our vast experience in the wind energy space and thus playing a major role in defining the country's energy future."
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