Indian wind turbine manufacturer Suzlon is in negotiations with some Japanese companies as it aims to form a joint venture in order to get a piece of the large offshore wind cake, Bloomberg writes.
This decision from Suzlon is not a surprising one, considering the size, complexity and expenses of deep water offshore wind projects, which require more work and investment.
Japan and the U.S. are what the company has in mind when it comes to setting up its joint venture. “This type of business is very capital-intensive so you must leverage the lowest cost of funds. Where is that? Japan and the U.S.,” Bloomberg quotes Suzlon Chairman Tulsi Tanti as saying.
Mr. Tanti added that Japan is especially attractive for wind turbine production because of its special tariff for offshore wind, which was introduced this year.