Suzlon Energy’s European unit Suzlon Wind Energy has formed a joint venture with the Bulgarian arm of Germany’s Volkswind. The JV will accelerate the world’s third largest wind turbine maker’s growth in the Bulgarian market.

Volkswind GmbH is one of the leading Independent Power Producers (IPPs) in Europe, and with over 40 wind farms, it is also one of the largest operators of wind farms in Germany.

The JV will develop projects exclusively using Suzlon wind turbines.

Speaking on the project, Erik Winther Pedersen, CEO, Suzlon Wind Energy said, "Suzlon already has a 13 MW project under construction in Bulgaria for a leading industrial client and I believe that our new relationship with Volkswind will help us grow Bulgaria’s wind industry even further."

Bulgaria offers one of the most attractive wind markets in Eastern Europe and is expected to achieve 500 MW of wind energy capacity by December 2010, with a target of more than 3,000 MW by 2020.

Suzlon Energy Ltd had early this year restarted the process to raise private equity funds as it looks to refinance its acquisition debt. Private equity fund WL Ross & Co. and BC Partners were said to be in talks to invest around $400-500 million in Suzlon Energy, sources familiar with the development had earlier told VCCircle.

The company could be look to dilute upto 15% stake, if the deal goes through. The deal, part of the company's turnaround move, would help bring in fresh equity into Suzlon.

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