Not the least bit put off by quality control issues of its wind turbines in America, Suzlon continues to be on a mission to gain market share through acquisition and foreign expansion. The latest news is that the firm has just bought a $500 m stake in the Chinese wind development company, Honiton Energy Holdings. They also plan to develop wind farms on five separate areas in China, representing a total of 2,244 square kilometres to develop 1,650 MW by 2012. Indeed, according to the same article, Suzlon's financial partners will spend another $2 billion by 2012 to develop a 1,650 megawatt portfolio of wind farms in the Inner Mongolia region of China.

This strikes me as shrewd for three reasons;

i) Chinese assets when priced in dollars are going to look a lot more valuable before long because an upwards revaluation of the renminbi has to be on the cards

ii) China is now the world's second biggest wind market - at 17% - and the targets for wind energy if anything, are increasing. According to the same article, a staggering 38.5 GW is to be added between 2008 and 2012. A couple of years ago, approx. 40 GW was the target for 2020. The Chinese government would much rather see this business go to a home company, or at least a joint venture than a totally foreign one.

iii) Mongolia. Because it is such a windy place, Mongolia, or more specifically, inner Mongolia, accounts for 40% of  China's wind potential. And it's a lot more exploitable than the 40% figure usually bandied about for the UK. The oft-repeated claim that the UK has two-fifths of Europe's wind potential usually comes with the omission to mention that it is mostly offshore.  Suzlon with this purchase is getting in to the onshore Mongolian market - arguably, the ultimate sweetspot of the nascent Asian wind boom.