In recent years, India’s wind energy sector has received substantial investments from foreign companies due to development potential, presence of competitive wind farm equipment and government policies. On a year-on-year basis, the wind energy sector is growing in India at a rate around 50%. Wind energy is seen as safe and cheap alternative to fossil fuel, which is hovering around $100 per barrel.

Wind energy has great potential and the industry is gaining prominence. India is the third-largest wind power generator in the world, US is second, and Europe is the first. The wind power generation is a global industry. In India the potential for wind energy is around 45,000 MW, and the country aims to have additional capacity of 100,000 MW in few years. Of which 10%, or 10,000 MW, is proposed from wind energy sector.

Suzlon is India’s largest producer of wind turbine generators and has tied up with companies around the world to supply the turbines that produce power from wind energy. In the next five years, utilities and governments in the US, Europe and China plan to earmark around $150 billion (Rs 5.9 trillion) for renewable projects, and the outlook looks good for investment in this emerging sector.

For Suzlon Energy stock, the recent market decline is given an excellent entry opportunity. Within a timeframe of 2-3 years, Suzlon stocks will yield good returns. At the prevailing market price, the stock will pay 24 times its expected earnings for 2009. During the quarter ended on December 31, 2007, the company showed upward growth, largely due to climatic concerns paving way for wind energy solutions.

Ongoing capacity expansion, a strong order book, and flow of IPO funds into subsidiary Hansen Transmissions will show the company’s earnings over the coming years. Due to one-off expenses such as relocation cost of projects and taxes happened due to hedging transactions that showed fourth quarter numbers negatively. At present Suzlon is vertically integrated energy merchandize provider. As on January, 2008, the company reported robust order book position of USD 4,335 million, with $600 million in domestic orders, and $3,726 million in international orders.