Suzlon Energy Australia enhances its service experience by locally refurbishing critical components

It has reduced its dependence on overseas suppliers amidst lessons learned from the pandemic.

Before COVID-19, renewable energy solutions leader Suzlon Energy Australia relied heavily on overseas suppliers for critical spare parts and services. The pandemic severely impacted the company due to this overdependence, disrupting the supply of essential wind turbine components in Australia. As a result, many wind turbines were offline, leading to significant power generation losses for clients.

This situation made it clear to the company that it needed to refurbish most of its critical components locally in Australia by partnering with local workshops and service providers.

With its expertise and control over the value chain, the company was able to supply the necessary spare parts for the repairs of major components, relieving local workshops of the burden of sourcing parts and allowing them to fully focus on the repair process.

Its engineering teams also worked closely with these local repair shops, providing them with a well-defined repair process and guidelines to follow, whilst its quality assurance officers ensured the work met the necessary standards.

The success of this local refurbishment of major components unlocked the company's cash flow, ensured a steady supply of critical components as needed, and enabled local partners to expand their businesses and build their expertise. It also helped clients maintain uptime and maximise their energy yield.

The total annual cost savings from refurbishing critical components locally in Australia, compared to procuring new components from overseas, amounted to US$2.5 million.

In the process, Suzlon Energy introduced another initiative: selling Value-Added Products and Services. This ensured that its older wind turbine technology was upgraded to match the performance of newly installed turbines. The company implemented software upgrades that increased energy yield for clients by 1% to 2%. This initiative also boosted Suzlon's total revenue by an additional 10%, amounting to US$1.6 million annually.

Suzlon Energy also analysed its cost structure and identified crane, material, and labor costs for replacing major components as significant contributors. To address this, the company developed a method for conducting up-tower repairs on major components, eliminating the need for expensive cranes. This initiative resulted in annual cost savings of US$3 million.

These initiatives were designed to provide the best service experience to clients and stakeholders. Their success was measured through the Overall Company Scorecard, which was linked to key performance indicators such as Health and Safety, Profitability, Cash Flow, Productivity, and Business Efficiency.

"These continuous improvements have led to significant business efficiencies, enhanced overall performance and productivity, and enabled us to achieve our financial and operational targets. From the perspective of our clients and the industry, we are now regarded as a trendsetter in the broader renewable energy sector," the company stated.

Suzlon Energy continually seeks to enhance its initiatives and embrace new ideas and opportunities as it learns and evolves daily. This milestone and positive outlook have earned the company the prestigious accolade at the highly regarded Asian Experience Awards 2024, where Suzlon took home the title of Australia Service Experience of the Year - Renewable Energy.

This esteemed awards program celebrates innovative initiatives from creative companies that deliver meaningful brand experiences to their stakeholders.

The Asian Experience Awards is presented by Asian Business Review Magazine. To view the full list of winners, click here. If you want to join the 2025 awards programme and be acclaimed for providing meaningful brand experiences to stakeholders, please contact Jane Patiag at [email protected].