Suzlon Energy Ltd

Dear Stakeholders,

It is an honour to write my first letter to you as the Chairman and Managing Director of the Suzlon Group. The Suzlon Group, founded with a deep understanding of the environment and sustainable development, has been at the forefront of Renewable Energy as a key solution provider since its inception. We have consistently recognised the growing threats of climate change and have responsibly adapted, innovated, and reshaped our business and products to help economies and industries address these challenges.

Climate change poses one of the biggest risks that humanity faces today. Addressing climate change is not only an environmental imperative but also a global responsibility. If we fail to take urgent action to reduce our greenhouse gas emissions, we will face increasingly severe consequences, including more frequent and intense natural disasters, crop failures, and disruptions to global supply chains leading to widespread catastrophes of health, food, water, and energy. The Intergovernmental Panel on Climate Change (IPCC) indicates that greenhouse gas (GHG) emissions need to be cut by 43% by 2030. Although countries are making ambitious efforts to reduce global greenhouse gas emissions, the progress could be outpaced and insufficient to limit global temperature rise to 1.5 degrees Celsius by the end of the century, as suggested by the United Nations Intergovernmental Panel on Climate Change.

As recognised unanimously by the world, climate change in the No. 1 crisis for humanity and Renewable Energy is the most viable weapon to combat it while creating a sustainable future where harmony is restored between people and the planet. Scalable new technologies and nature-based solutions allow us to leapfrog into a cleaner, more resilient world. Today, renewables have become one of the lowest-cost sources of electricity, making them not just a climate imperative but also a commercially viable choice. Now, all we need is to ramp up our efforts and investments rapidly to accelerate this transition to outpace the devastation of climate change.

The Wind Energy sector has recently surpassed a significant milestone of 1 terawatt (TW) of installed capacity, a result of nearly four decades of relentless effort. As per industry projections, it is very likely that the next terawatt will be reached in less than ten years, which would be a significant ramp-up. The energy and climate policies being implemented by major economies worldwide, demonstrate a remarkable level of ambition and commitment to supporting Wind Energy and other Renewable Energy sources. These developments signal a promising future for the growth and advancement of Renewable Energy and Renewable Energy Technologies propelling the industry to redefine and forge innovative partnerships with governments, cities, communities, investors, and customers.

In CY22, the global Wind Energy sector witnessed connectivity of 77.6 GW of new capacity to power grids worldwide, representing a year-on-year growth of 9%, marking the third-highest year in history in terms of new installations. This growth was attained despite economic challenges and disruptions in the global supply chain, further compounded by global health and energy crises. Specifically, the onshore wind market contributed 68.8 GW of new capacity worldwide, while the offshore wind sector connected an additional 8.8 GW to the grid last year.

The simultaneous imperative of secure and affordable energy supply while meeting climate targets has ensured that the mid-term outlook for Wind Energy is exceptionally promising, with a projected doubledigit growth rate of 15%. Global Wind Energy Council (GWEC) anticipates that an impressive 680 GW of new wind power capacity will be added over the next five years. This translates to an average of over 136 GW of new installations annually until 2027, signalling sustained momentum and expansion in the sector.

In addition to the multiple benefits of clean energy beyond decarbonising economies which include promoting sustainable growth, providing energy security, and reducing dependence on depleting sources of fossil fuels, this transition is projected to create approximately 10.3 million net jobs worldwide by 2030.

As per Bloomberg NEF reports, global investments in the low-carbon energy transition reached an astounding $1.1 Trillion in CY22, setting a new record and showcasing significant acceleration compared to the previous year thereby enabling the Renewable Energy sector, encompassing wind, solar, biofuels, and other renewables, to retain its position as the largest recipient. Notably, in CY22 the electrified transport sector, encompassing expenditures on electric vehicles and associated infrastructure, came close to renewables in terms of investment with a substantial $466 being allocated to electrified transport, reflecting an impressive year-on-year growth rate of 54%. This surge in investment signals a growing focus on decarbonising the transportation sector and transitioning to electric mobility which in turn could open up one of the largest avenues of growth for clean electricity to support global net-zero ambitions.

India holds the fourth position in the world for Renewable Energy Installed capacity, including Large Hydro. It also ranks fourth in both Wind Power capacity and Solar Power capacity.

India's announcement of its ambitious goals of installing 500 GW of non-fossil fuel capacity by 2030, achieving net-zero emissions by 2070 and meeting fifty percent of its electricity needs from Renewable Energy sources by 2030, marks a momentous milestone in the global effort against climate change. Within these goals MNRE (Ministry of New and Renewable Energy) has set a target of 100 GW of Wind Energy installations by 2030. There is also a huge potential of about 127 GW from offshore installations along the country's 7,600 kms long coastline. In May 2023, India's installed Renewable Energy capacity stood at 173.6 GW amounting to 41.4% of the overall installed power capacity in the country. Within Renewable Energy, the contribution of Wind Energy of over 42.8 GW currently stands at 24.6%.

To meet India's 500 GW Renewable Energy target and tackle the annual issue of fossil fuel demand- supply mismatch, the Ministry of Power has identified 81 thermal units which will replace coal with Renewable Energy generation by 2026. 100% FDI allowed in the power sector has boosted FDI inflow in this sector taking it to US $16.57 Billion between April-December 2022.

The Government has also announced its intent to invite bids for 50 GW of Renewable Energy capacity annually for the next five years, i.e., from FY23-24 to FY27-28. These annual bids of ISTS (Inter-State Transmission) connected Renewable Energy capacity will also include setting up of Wind Energy capacity of at least 10 GW per annum. Expanding clean energy has huge employment and economic advantage. Reaching its goal of 500 GW of non-fossil fuel energy sources by 2030, India can create 3.4 million new clean energy jobs. A large chunk of these jobs will likely be local employment opportunities, bringing transformation closer to remote communities.

Given the commercial viability of Indian renewables and the conducive policy environment, Indian corporates and industry at large has started participating in green energy adoption and acceleration with great enthusiasm. I believe that we are very well positioned as a country to showcase to the world how the battle against climate change can be won while powering growth, thereby firmly establishing India as a central force on the global energy transition map.

Suzlon, a pioneer in India's Renewable Energy sector, thrives on innovation and continuous R&D, making green power accessible to all. Our focus is on reducing Levelised Cost of Energy (LCoE), enhancing efficiency, and maximising energy output. The Suzlon 3.x MW S144 series, is a large wind turbine platform which is a remarkable evolution that targets low wind sites, delivers higher energy yield, features a 144-metre rotor diameter, and has local content up to 85-90%, aligning with our vision of 'Aatmanirbhar Bharat'.

The S144 wind turbine, extendable to 3.15 MW, reaching 160 meters, showcases our ability to optimise wind resources at higher altitudes. These turbines use our cutting-edge SB 70.5 carbon fibre blade, excelling in low-wind sites, significantly boosting generation yield per unit of land. This technology is poised to accelerate Wind Energy installations in India, powering the nation's sustainable growth.

Going forward our technology focus will stay aligned with market requirements of supporting round-the- clock (RTC) Renewable Energy power plants, wind- solar hybrid power plants, Renewable Energy power plant management systems and integrated Renewable Energy solutions for green hydrogen and green fuels.

Renewable Energy inherently has a transformative ripple effect throughout local industries and communities, with benefits far beyond its immediate impact. The switch to decentralised electricity generation is a game-changer, fostering a dynamic shift of power from urban centres to rural areas. This transformation has not only invigorated agriculture by improving availability and access to electricity but has also stimulated rural and micro economies.

Wind Energy projects have a large geographic spread compared to conventional power projects thereby creating a positive wave of development and growth across several villages that we touch in one sweep. Local job creation, stimulating rural businesses and commerce, upskilling local human assets, logistics and infrastructure development as well as connecting these centres through a network of roads to the commercial mainstream have been continual and sustained benefits over our 28 years of Suzlon operations. Increase in digitisation and high-quality communications networks in these remote areas have connected hundreds of remote Indian villages to the world redefining every aspect of their lives.

I derive great satisfaction from the fact that almost 80% of all jobs at our operating sites are local jobs. For every engineering job at our sites, we create one supporting job which is staffed by local people in addition to several local engineers joining our teams as well. Throughout our project footprint we have seen a consistent increase in rural education access, value job creation, increase in income and elevation in quality of life ultimately fostering the essence of self-reliance and security.

Clean energy jobs have the possibility of greatly improving livelihoods, building climate resilience, and supporting India's national clean energy and employment goals, all at the same time.

As India's growth story unfolds, the demand for energy and resources is expected to rise. India is the third-largest producer and consumer of electricity worldwide. Factors such as a growing population, expanding electrification efforts, and increasing per- capita energy consumption are expected to provide further momentum to the power sector. These trends highlight the immense potential and opportunities for investment and development in the industry.

Over the past 20 years, energy consumption has doubled, and it is projected to increase by at least 25% by 2030. Currently, India imports over 40% of its primary energy requirements, amounting to more than USD 90 Billion annually. Sectors like mobility and industrial production heavily rely on imported fossil fuels. Therefore, it is crucial to shift towards technologies that promote a greater share of renewable sources in the energy mix and gradually reduce dependence on fossil fuels.

Green hydrogen, produced using Renewable Energy, has the potential to play a key role in low-carbon and self-reliant economic pathways. It can enable the utilisation of domestically abundant Renewable

Energy resources across regions, seasons, and sectors, serving multiple purposes as fuel, or industrial feedstock. In sectors such as petroleum refining, fertiliser production, and steel manufacturing, hydrogen derived from renewable sources can directly replace fossil fuel-derived feedstock while hydrogen-fuelled long-haul automobiles and marine vessels will drive significant decarbonisation in the mobility sector.

Wind-Solar hybrid power plants offer an optimal solution to meet the growing demands of stakeholders, consumers, and utilities by providing a reliable round- the-clock Renewable Energy source. Promising options include wind-solar-battery power plants or wind-solar-gas power plants. Wind-solar hybrid projects with optimal configuration have the potential to achieve high Plant Load Factors (PLFs), surpassing 60%, making them highly viable. With efficient energy storage solutions, this PLF can even reach up to 80%. Implementing efficient and integrated hybrid Renewable Energy systems can accelerate our transition toward a sustainable future. It represents one of the most effective approaches to unlock the true potential of renewables, aligning with our aspirations for green ammonia, green hydrogen, and e-mobility requirements.

As India's leading Renewable Energy solutions provider, Suzlon is committed to partner and catalyse India's energy transition journey. With the rapid ramp-up of Renewable Energy installations, deeper penetration of renewables in our economy and wider adoption of clean energy as a nation, Suzlon, is committed to providing world-class, innovative, and integrated Renewable Energy solutions to power our nation's growth. With nearly three decades of extensive experience and expertise in harnessing the winds across India's varied wind regime, we have created strong fundamentals to build India's energy transition story of the future.

At Suzlon, we recognise the tremendous opportunity and responsibility that this decade has entrusted us with, as we look at various emerging opportunities, new market segments, and an expanding role for us in the world's energy transition endeavours, in accordance with the expectations of our stakeholders.

As we look forward to leading the Indian Wind Energy market, I eagerly anticipate your active participation and support in our mission to establish an India driven by clean, Sustainable Energy. By doing so, we can unlock our nation's immense potential to create a brighter future and a stronger nation for upcoming generations, while contributing to a better world at large.

Best Wishes

Chairman and Managing Director