Siemens Gamesa Secures Major Orders from India in July

Zamudio, Spain - Siemens Gamesa secured two major contracts with Indian project developer Renew Power in July. The stock is getting a boost after a loss-making trading week.

Since the publication of a profit warning for the third quarter on 14 July 2021, the share price of wind turbine manufacturer Siemens Gamesa, which is listed in the renewable energy stock index RENIXX World, has been under pressure. Overall, the share price lost more than 17 percent in the last week alone. With the announcement of a second major order from India in July, the share seems to have calmed down again. The share price has risen in yersterday's trading (21.07.2021).

Siemens Gamesa scores in India with orders for more than 600 MW

In July, Siemens Gamesa signed two contracts with Indian renewable project developer Renew Power for the delivery of a total of 180 SG 3.4-145 turbines with a total capacity of 623 MW for two large Indian wind farms in the Indian state of Karnataka. Of these, 93 units are for the 322 MW Tondehal project in Koppal district and 87 units are for the 301 MW Hombal project in Gadag district. Delivery of the turbines is expected to begin in fiscal 2022, which Siemens Gamesa will start from October.

Siemens Gamesa launched the SG 3.4-145 turbine in 2020 and these are the first orders for this turbine type for India. The new SG3.4145 turbine has a rated capacity of 3.465 MW and can operate at up to 3.6 MW under certain site conditions. Siemens Gamesa will supply the wind turbines for Renew Power's projects from its manufacturing facilities in India.

Siemens Gamesa turbines with more than 1,000 MW in operation at Renew Power

Siemens Gamesa and Renew Power first collaborated in 2012 for a 22 MW wind farm in the state of Maharashtra. Since then, Siemens Gamesa has developed wind farms for Renew Power in five Indian states. The wind turbines used range from the old 850 kW turbine to the latest SG 3.4-145 turbine. With more than 1,000 MW of commissioned wind projects, Siemens Gamesa now serves over 30 per cent of Renew's wind portfolio and is one of the company's key renewable energy partners in India.

Siemens Gamesa has been operating in India since 2009. The wind power capacity installed by the company has recently surpassed the 7,000 MW mark. Siemens Gamesa has rotor blade manufacturing facilities in Nellore (Andhra Pradesh), a nacelle factory in Mamandur (Chennai, Tamil Nadu) and an operations and maintenance centre in Red Hills (Chennai, Tamil Nadu).

About the wind market India

India's near-term target to build 175 GW of renewable capacity by 2022 includes 60 GW of onshore wind capacity. Of this, around 38 GW was installed at the end of 2020. Renewable energy is to be expanded to a capacity of 450 GW by 2030, including 140 GW of wind power capacity.

Share stops downward trend

Under the impact of a profit warning from Siemens Gamesa, the RENIXX Group share price fell by 17.4 per cent to 21.89 euros in the last trading week (closing price 16.07.2021, Stuttgart stock exchange). This week, the Siemens Gamesa share seems to have managed a turnaround. On the first three days, the share gained 6.1 percent to 23.23 euros (closing price 21.07.2021, Stuttgart Stock Exchange).

Source: IWR Online, Jul 07 2021