Indias biggest wind power maker, Souzlon, may set up a production plant to build equipment for wind turbines in South Africa.
Souzlon considers regions like the Eastern or Western Cape. However, Silas Zimu, the chief executive officer of Souzon's South African business didn't disclose an investment amount.
The department plans to build blades and towers for the South African wind turbines. To justify the investment the plant needs to produce 400 megawatts worth of equipment annually.
In South Africa, most of the electricity is generated from coal by Eskom Holdings SOC Ltd., a sate-owend company. Currently the gap between supply and demand is "tight" reported the company. South Africa aims to reduce their dependence on fossil fuels and tries to expand their power capacity.
In the beginning of August South Africa asked for companies which are interested in setting up a renewable energy plants with a combined capacity of 3,725 megawatts by 2016. The country requested proposals for that. Souzlon was one of the preferred bidders.