← Business Models: Industry Specific (Infrastructure, Transport & Utilities) (all topics)
Turnkey vs equipment-only - wind
What it is
A wind manufacturer can sell turbines alone, leaving the customer to arrange land, evacuation and civil works, or deliver a commissioned project turnkey. Turnkey multiplies contract value but adds land acquisition, approvals, construction and connectivity risk
Most Indian wind orders are turnkey, which is why order books convert slowly
Impact on industries
- Turnkey captures the full project value rather than only the turbine, and customers without development capability prefer a single point of accountability
- Imports risks the manufacturer cannot control - land, right-of-way, evacuation and clearances all sit between the order and revenue recognition
- Working capital is consumed across a long development cycle, unlike an equipment sale recognised on despatch
- The mix determines how a wind order book should be read - equipment orders convert fast, turnkey orders convert on the slowest constraint