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KSK Energy Says Dongfang Wind-Turbine Order Delayed by Approvals

KSK Energy Ventures Ltd. (KSK), an Indian power-project developer, said a wind-turbine order it placed with Dongfang Electric Corp., one of the largest overseas contracts for a Chinese supplier, has been held up by permitting issues.

“The Dongfang order couldn’t proceed yet because they have completed only two out of three mandatory tests for undertaking any global supplies,” KSK Energy said in an e-mailed response to questions about the 250-megawatt order announced last December. Dongfang expects to complete those requirements this month, it said, without specifying who stipulated the tests.

Companies like Sinovel Wind Group Co. and Xinjiang Goldwind Science & Technology Co. rank among the world’s top five turbine makers mostly because of domestic demand. As growth slows at home in the world’s largest wind market, Chinese suppliers are focusing on expanding abroad, and Dongfang’s order with KSK was “the first meaningful export contract,” CCB International Securities Ltd., a unit of China Construction Bank, said in an April report.

Dongfang, China’s third-largest maker of the wind equipment, announced the $203 million contract to supply 166 units of its 1.5-megawatt, direct-drive wind turbines to Hyderabad-based KSK Energy last year after Premier Wen Jiabao’s visit to New Delhi that generated $16 billion of deals between Indian and Chinese companies. 

KSK Energy has 71 megawatts of operational wind farms, according to its website. It plans to increase that to 300 megawatts by the end of this year, it said in December after announcing the Dongfang order.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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