Why Wind Power Companies Are Soaring High in 2023

Why Wind Energy Stocks Are Soaring in 2023

Wind energy is one of the fastest-growing and most promising sources of renewable power in the world. It offers many advantages, such as reducing greenhouse gas emissions, creating jobs, supporting local communities, and providing a diverse and cost-effective energy option. In this article, we will explore why wind energy stocks have been on a tear ever since Q4FY23 and which companies are leading the way.

Government Support for Wind Power Projects

One of the main drivers of the wind energy sector’s growth is the strong government support for wind power projects. In March 2023, the Indian government announced that it will invite bids for 8 GW of wind power projects every year from 2023 to 2030. This is part of the ambitious target of achieving 175 GW of renewable energy capacity by 2030, out of which 60 GW will come from wind energy.

This announcement has boosted the confidence and prospects of wind energy companies, as they can expect a steady pipeline of projects and revenues for the next decade. The government has also introduced various incentives and policies to encourage wind power development, such as accelerated depreciation, generation-based incentives, tax benefits, and tariff guarantees.

Suzlon: The Leader in Wind Energy

Among the wind energy companies in India, Suzlon stands out as the leader with a 50% share of installed capacity. Suzlon is also a global player, with operations in 18 countries across Asia, Australia, Europe, Africa, and the Americas. Last week, Suzlon became the first Indian wind energy company to reach 20 GW of global wind energy installations. This is a remarkable achievement that showcases Suzlon’s technological prowess and innovation.

Suzlon has also improved its financial performance significantly in the last year. Its net debt has been reduced by 90% and it has guided to becoming net debt free soon. This has improved its liquidity and credit rating, enabling it to access cheaper funds and invest more in research and development. Suzlon has also diversified its product portfolio to offer a range of wind turbines for different wind regimes and customer needs.

Suzlon’s stock price has reflected its strong performance and potential. In the last month, Suzlon’s stock has surged by 80%, making it one of the best performers in the renewable energy space.

Other Wind Energy Players to Watch

Suzlon is not the only wind energy company that has benefited from favorable market conditions. Other players such as Inox Wind Energy, KPI Green Energy, and Orient Green Power have also seen their stock prices rise significantly in the last month.

Inox Wind Energy is a subsidiary of Inox Group, a diversified conglomerate with interests in industrial gases, chemicals, refrigerants, cryogenics, entertainment, and renewable energy. Inox Wind Energy offers end-to-end solutions for wind power projects, including manufacturing, installation, commissioning, operations, and maintenance. Inox Wind Energy has an installed capacity of over 2 GW in India and has recently won orders for 1.2 GW from various customers.

KPI Green Energy is a joint venture between KPI Global Infrastructure Limited and Japan’s Sojitz Corporation. KPI Green Energy is focused on developing wind-solar hybrid projects in India, leveraging the complementary nature of both sources of energy. KPI Green Energy has an installed capacity of over 300 MW and has recently commissioned a 50 MW hybrid project in Gujarat.

Orient Green Power is a leading independent renewable energy producer in India, with an installed capacity of over 425 MW across wind and biomass segments. Orient Green Power has recently announced its plans to demerge its wind and biomass businesses into two separate entities, with an aim to unlock value for its shareholders and focus on each segment’s growth.

Conclusion

Wind energy is a clean, renewable, and cost-effective source of power that can help India meet its growing energy demand and climate goals. The government’s support for wind power projects has created a favorable environment for wind energy companies to thrive and grow. Suzlon is the leader in this sector, with a dominant market share and global presence. Other players such as Inox Wind Energy, KPI Green Energy, and Orient Green Power are also showing strong performance and potential. Wind energy stocks are soaring in 2023 and are likely to continue their upward trend in the coming years.

Disclaimer: The information provided in this blog post is for general informational purposes only. It is not intended to be investment advice or a recommendation to buy or sell any securities. The views and opinions expressed are those of the author and do not necessarily reflect the views of any other entity. The author does not make any representations or warranties as to the accuracy, completeness, or reliability of the information. The reader should consult a qualified financial professional before making any investment decisions based on the information in this blog post. The author is not liable for any losses or damages arising from the use of the information in this blog post.