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GWI QUARTERLY
Goldwind International, Q2 2017, Volume 8
Pakistan Sachal Wind Farm COD Commenced
What’s new in the US? “Heart of Texas” and “Rattlesnake” Happened!
New Deal Sealed on Pasuquin 132MW Wind Farm in the Philippines
Goldwind AUS Acquired 530MW Stockyard Hill Wind Farm
2
I. GWI Business Performance p.3
II. Market Activities & News Highlight
TSA Contract Sealed for Philippine Pasuquin 132MW Wind Farm p.4
Goldwind to Build the Largest Wind Farm in Australia, in Deal with Origin Energy p.4
Rattlesnake Wind Farm Received Tax Financing in the US p.6
Roadshow for Goldwind 3MW(S) Platform Turbines in Local African Market p.7
Goldwind and Aurora Energy Announced Agreement for Wild Cattle Hill Wind Farm p.8
Pakistan Sachal Wind Farm COD Commenced p.9
Financial Close on Cuba La Herradura I Wind Farm p.10
Goldwind Acquired 160MW Heart of Texas Wind Farm p.11
Goldwind Africa Participated in Africa Energy Forum (AEF) p.12
White Rock Solar Farm in Australia achieved Financial Close p.13
Chairman of Saudi Electricity Company Meeting with Goldwind Delegation p.14
Saudi Vice Minister of Energy, Industry and Mineral Resources Visited Goldwind p.16
Strategic Agreement Reached between Goldwind and PowerChina p.17
Kazakhstan Tour During Astana 2017 World Expo p.18
Goldwind Africa Launched Scholarship for Technician Training p.20
III. Global Wind Industry Insight
Q2 2017 Global Wind Market Overview, State of Play and Short-Term Forecast p.22
GWI Key Markets Outlook p.24
CONTENTS
3
Q2 2017 has seen steady growth in terms of order
intake and market activities of GWI.
The first battle in the Philippines bodes well, with
Turbine Supply Agreement (TSA) signed for the
132 MW Pasuquin Wind Farm. GWI will provide 53
units of GW109/2500 turbines for the project.
Meanwhile, the White Rock Wind Farm in Australia
proceeds on schedule, installation of 32 units of
GW121/2500 turbines completed during the
second quarter.
Shipment has also been well arranged for Wind
Eagle Phase I and II projects to Pakistan and for the
DERE project to Turkey.
Goldwind Australia has just acquired the largest
to-be-built wind farm in the southern hemisphere.
The Stockyard Hill project with a total capacity of
530 MW is highlighted by the use of Goldwind
3MW(S) platform turbines.
I. GWI BUSINESS PERFORMANCE
By 30 Jun. 2017, Goldwind International cumulative:
- Signed contract in capacity terms, 1,979.75MW
- Shipped capacity, 1,334.25 MW
- Installed capacity, 1,242.75 MW
Table: Business performance of GWI, broken-down by turbine platforms (by 30 June 2017)
PLATFORMS SIGNED SHIPPED INSTALLED AVAILABILITY
750 KW 29.25 MW 29.25 MW 24.75 MW 98.95%
1.5 MW 702 MW 555 MW 535.5 MW 99.44%
2.5 MW 1247.5 MW 750 MW 682.5 MW 98.66%
SUBTOTAL 1978.75 MW 1334.25 MW 1242.75 MW —
More details on our project development and
market activities to follow in SECTION II…
4
II. Market Activities & News Highlights
TSA Contract Sealed for Philippine Pasuquin 132MW Wind Farm
Goldwind and Powerchina Shanghai Electric Power Design Institute Co., Ltd.
(SEPD) recently signed Turbine Supply Agreement for the Pasuquin wind power
project in the Philippines, total capacity 132 MW. Goldwind will supply 53 sets of
GW 109/2500 PMDD wind turbines for the project and O&M service.
The seal of the deal signifies that Goldwind has successfully broken into the
Philippines market. This is also the first time that PMDD technology and Chinese
wind turbines land on the market.
The Pasuquin wind farm is located in the northern part of Luzon Island. The project
is scheduled to commence construction from the second half of 2017, and
complete installation in late 2018. It will open the window for Goldwind to increase
its visibility in the country and Southeast Asia.
Though not an easy market to land on, Goldwind Asia team has spared no efforts.
Goldwind intends to build a local team in due course to help create job
opportunities while contributing to the development of renewable energy industry
in the country.
More wind power projects are expected in the Philippine wind market.
Goldwind to Build the Largest Wind Farm in Australia,
in Deal with Origin Energy
Goldwind acquired the largest to-be-built wind farm project in Australia.
From a commercial perspective, this represents another firm step of
Goldwind internationalization; an industrial perspective, this deal signifies
our unswerving determination towards clean energy development.
8 May 2017, Goldwind announced it has agreed to purchase the Stockyard
Hill Wind Farm project in Victoria, Australia from Origin Energy for a price
of AUD $110 million. Origin Energy has also agreed to purchase all the
electricity and renewable energy certificates (RECs) produced by the
project until 2030 under a power purchase agreement (PPA). The PPA
signed for this 530MW Stockyard Hill Wind Farm power purchase
agreement is by far the largest of the kind in Australian wind power market.
Luzon mainland in red, its
associated islands in maroon.
Pasuquin wind farm location
5
Goldwind to Build the Largest Wind Farm in Australia,
in Deal with Origin Energy
The Stockyard Hill wind farm is a high quality large-scale wind farm with planned 530MW capacity in western
Victoria. Upon completion, the wind farm will produce sufficient electricity to supply 400,000 average Victorian
houses.
Goldwind’s successful acquisition of the Stockyard Hill Wind Farm demonstrates the strength of Goldwind’s 3S
Smart Wind Turbine technology and its potential to drive down the cost of renewable energy in Australia.
Goldwind Australia will work closely with the host landowners and the local community as the project is
prepared for construction. Goldwind Australia will arrange project funding and will deliver the wind farm under
an EPC contract (Engineering, Procurement and Construction). In addition, Goldwind will also perform
operation and maintenance for the Stockyard Hill wind farm over its 25-year life cycle.
Goldwind Chairman Mr Wu Gang said, “Goldwind is delighted to have been selected by Origin Energy to
deliver the Stockyard Hill Wind Farm and to supply renewable power from the project to Origin until 2030. This
project will make a material contribution to achieving Australia’s 2020 Renewable Energy Target. This is the
largest wind power purchase agreement seen in Australia.”
“Goldwind recognizes the strong leadership being shown by Origin Energy in the transition to a lower carbon
emissions energy sector, Goldwind is also committed to this transition.” Said Wu Gang.
6
Goldwind Technology announced an agreement
with MidAmerican Wind Tax Equity Holdings (a
Berkshire Hathaway Energy subsidiary) and Citi
Group on tax equity financing for the 160MW
Rattlesnake wind farm project located in McCulloch
County, Texas.
“We are very pleased to partner with world-class
institutions, Berkshire Hathaway Energy and Citi, on
this innovative and breakthrough deal. Their
support is a testament to the performance and
reliability of Goldwind’s Permanent Magnet Direct
Drive (PMDD) wind turbine technology, with its
industry-leading availability,” said Mr. Wu Gang,
Chairman of Goldwind. “Goldwind will continue
our internationalization strategy.”
Rattlesnake Wind Farm Received Tax Financing
in the US
The approximately $250 million Rattlesnake Wind
Project, utilizing 64 Goldwind GW 109/2.5MW
PMDD wind turbines, will bring significant
economic benefit to the community of McCulloch
County and support around 250 well-paying
construction and service-related jobs. Once
operational, the project will be Goldwind’s largest
US wind project to date.
Goldwind originated and structured the acquisition
and financing of the Rattlesnake Wind Project,
being the first of its kind for a Chinese wind energy
technology company. This joint-investment also
marked as overall bankability of Goldwind wind
turbine.
27 April 2017 unveiled a significant milestone for Goldwind in the US wind market. The 160MW Rattlesnake
Wind Farm project received tax financing, the first of its kind for a Chinese wind energy technology company.
7
In early May, when weather still chilly
and wind breezing, Goldwind Africa
team launched a roadshow in Cape
Town to present and promote
Goldwind’s new 3MW(S) Platform
Smart Wind Turbine technology to
local key clients.
Against the background that
Goldwind Africa submitted bidding
proposals with the new 3MW(S)
Smart Wind Turbine technology on
three projects in partner with EDF
and one with Juwi in South Africa, an
official presentation of the new
platform seemed imminent to
unveil.
Cape Town is where most of
Goldwind Africa’s key partners are
based, the ideal hub for promotional
activities. The team visited several
clients, including EDF, Mainstream,
G7, Building Energy and Juwi, in
addition to a couple of consulting
companies with whom Goldwind
Africa has established close
relations, such as DNV GL, Mott
MacDonald and OST Energy.
During the introduction of the 3MW(S) platform turbines and an
informative Q&A session, the team presented the distinctive features
and advantages of the technology and discussed with clients the
future development of the technology, contributing to the
reconsolidation of market confidence.
In addition to promoting Goldwind 3MW(S) platform turbines, the
roadshow also brought new business opportunities. In countries such
as Ethiopia, Kenya, Zambia, Mauritius, Ghana and other emerging
markets, renewable energy is becoming a promising sector. Clients
proposed to Goldwind Africa team several preliminary business
models and discussed the possibility of co-development and IPP
investment etc.
The roadshow made Goldwind 3MW(S) platform its official debut in
Africa. In addition, thorough communication with local partners has
given rise to fresh ideas on market development and opened new
windows to other parts of the continent. A strengthened relationship
with clients in the future is envisioned both in and beyond the
renewable sector.
Roadshow for Goldwind 3MW(S) Platform Turbines
in Local African Market
The 3MW(S) Platform made its debut
in Africa. The roadshow also brought
potential business opportunities for
Goldwind Africa team. It would also
help further enhance Goldwind’s
visibility in Sub-Sahara Africa.
8
Goldwind and Aurora Energy Announced Agreement for Wild Cattle Hill Wind Farm
The 144MW project in Tasmania will contribute to local economic and social development.
On 6 June, Goldwind reached an in-principle
agreement with AURORA Energy to construct a
144MW wind farm at Cattle Hill in Tasmania’s Central
Highlands. Aurora Energy is a Tasmanian
Government-owned electricity retailer, which has an
obligation to purchase a certain number of
renewable energy certificates to comply with
Australia’s national renewable energy legislation.
Goldwind’s long-term partnership with Aurora
Energy and the cooperation on the wind farm will
assist Aurora Energy to meet its renewable energy
obligations till 2030.
Aurora Energy CEO Rebecca Kardos said the energy
retailer was pleased that it was partnering with a
Tasmanian project of such significance. “We
strongly support the development of further
renewable energy in Tasmania, and this project will
help strengthen Tasmania’s energy security,” Mrs
Kardos said.
The agreement represents a significant commitment
by Aurora Energy which enhances Tasmania’s
renewable energy credentials and delivers local
benefits to both its customers and the community.
The Wild Cattle Hill Wind Farm project is backed by
Goldwind, who is also responsible for the
development of other major wind farms in Australia.
Goldwind Australia Managing Director John Titchen
said construction of 49 wind turbines is planned to
commence in September 2017, with the $300 million
wind farm expected to provide a significant economic
contribution to the State.
“The project is expected to employ more than 150
people during construction and have up to 10
permanent maintenance staff when fully operational
in 2020,” Mr Titchen said. “We are particularly
excited to have reached this stage of the project given
our long interest in developing a project of this nature
in Tasmania.”
9
10 April 2017 marked the Commercial Operation Date (COD) of Goldwind Sachal wind farm project in Pakistan
upon its completion of a consecutive 168-hour commissioning test. Afterwards, the warranty contact of the
project also entered into force from 10 May. The 49.5MW Sachal project represents the third wind farm in
Pakistan that is supplied by Goldwind turbines and that has seen successful COD, another milestone in the
Pakistani wind power market.
Sachal project is located in Sindh province in the east of Pakistan, EPC contracted by PowerChina. Goldwind
supplied 33 sets of GW 77-1.5MW wind turbines for the project, total capacity 49.5MW. During the 7-day
commissioning period, all turbines achieved 99.85% availability, which once again proved the performance
excellence of Permanent Magnet Direct Drive technology.
One of the critical constraints to Pakistan’s socio-economic development is power shortfall. Recent years have
seen closer bilateral ties in China-Pakistan energy cooperation under China’s strategic deployment of “Belt
and Road” initiative and “China-Pakistan Economic Corridor”. The Sachal wind farm is among the 14
priority projects under China-Pakistan energy cooperation framework, and it also represents the first
renewable energy project under the Belt and Road initiative that has signed financing contract.
The implementation of the project was anything but an easy task. The project team worked closely with local
partners under extreme weather condition of over 40℃ in the wild and desolated dessert. However, the
unfavorable natural conditions couldn’t beat them down. The team’s work was recognized and appraised by
not only the project owner, but also third parties including representatives from the local grid, supervisory
team and various international companies. Sachal wind farm set an exemplary standard for future projects.
Pakistan Sachal Wind Farm COD Commenced
The 49.5MW Sachal project represents the third wind farm in Pakistan that
has been supplied with Goldwind turbines and that has seen successful COD,
another milestone in the Pakistani wind power market.
10
Financial Close on Cuba La Herradura I Wind Farm
The three and a half years’
efforts of Goldwind South
America team are paying off,
a bit late than expected, but
better than never…
Now, the Cuba La Herradura I
Wind Farm project finally
closed financing.
In December 2013, Goldwind and Avic International established a
consortium and jointly signed the commercial contract for the
51MW La Herradura Phase I wind farm project with Cuba Energy
Import Company (Energoimport).
As agreed with Energoimport, the consortium would be
responsible for the design, equipment supply, technical support,
commissioning, and 2-year warranty and O&M for the project. The
Phase I project would utilize 34 units of GW 77/1500 PMDD wind
turbines and would receive financing from Exim Bank of China for
project construction. Goldwind South America team has been
actively following the negotiation of the project while preparing
for its execution.
In April 2016, China Exim Bank approved the loan planning,
followed by the approval of loan underwriting from Sinosure.
However, Cuba government proposed a change to the clauses in
the loan agreement, which resulted in the reopening of contract
negotiation from July 2016. After almost a whole year’s effort, all
the details in the financing agreement were agreed upon, contract
eventually signed on 23 June 2017.
Cuba has been seeking to lose its dependence on fossil fuel energy. As such, renewable energy
programme is on the government’s agenda. To date, Cuba has planned 13 wind farm projects
with a total capacity of 690MW, installation to complete by 2030.
Even though financing negotiation of La Herradura Phase I wind farm prolonged for years, the
preparation work was never stalled. As the first large-scale wind farm project to start construction
work in Cuba, it hosts great significance in Cuba’s new energy strategy.
La Herradura Phase I project is Goldwind’s second project in Cuba, but the first of a megawatt-
scale wind farm to roll out. Goldwind also plans to provide long-term O&M service for La
Herradura Phase I project.
11
On 24 May, Goldwind announced an
agreement with Renewable Energy
Systems Americas (RES) to acquire the 160
MW Heart of Texas Wind Project. Following
the acquisition of Rattlesnake project by
Goldwind, this marked the second deal
with RES Group, just one year after the first
transaction.
The 160 MW Heart of Texas Wind Project is
also located in McCulloch County, Texas,
where the wind resource is favourable and
LCoE is most competitive. The project will
utilize Goldwind GW 121/2.5MW wind
turbines.
“The partnership with RES on the Heart of Texas wind project
further demonstrates the strong accreditation of Goldwind’s
industry-leading Permanent Magnet Direct Drive turbine
technology in the US wind market,” said Vikaas Rao-
Aourpally, Vice President of Sales and Business Development
for Goldwind Americas. “We are proud to again partner with
RES, a leading renewable energy developer and constructor to
continue to grow Goldwind’s presence in the Americas.”
“RES is pleased to work with Goldwind again to sign the Heart
of Texas sales transaction,” said Brian Evans, Chief
Development Officer of RES in the Amercas. “This wind
project will bring economic benefits to the Lone Star State,
thus helping us meet our mission of providing a low carbon
future for all.”
Goldwind is in the process of arranging a financing package in
partnership with top-tier financial institutions that will include
construction and tax equity financing and a long-term ERCOT
fixed price hedge for power production. In April 2017,
Goldwind received tax equity financing commitments from
Berkshire Hathaway Energy and Citi for the approximately
$250m Rattlesnake Wind Project.
Goldwind Acquired 160MW Heart of Texas Wind Farm
In the 17th Century, Mayflower shipped the first group of
Pilgrims to the “New World”.
In May 2017, Goldwind USA embraced an early harvest
in this New World: Goldwind acquired the 160MW “Heart
of Texas” Wind Farm project, a second-time joining hand
with RES Americas.
12
Goldwind Africa Participated in Africa Energy Forum (AEF)
This year, the Africa Energy Forum (AEF) was held in Copenhagen, Denmark, from 6th
to 9th
June. AEF is a
specialized conference in the energy sector with focus on renewable energy development in the African continent.
Participants mostly come from Africa but there was also a wide coverage of international companies with energy
business in African countries. Government departments, utilities, IPP developers, sponsors of renewable projects,
banks and consulting firms, etc. are most widely represented.
It was roughly estimated that over 500 entities were represented in this year’s AEF. Ministers from more than 10
African countries participated in the conferences and discussion sessions, a great opportunity for companies, such
as Goldwind, which are devoted to African renewable energy market, to have a well-informed knowledge regarding
Africa’s policy emphasis and its demand as well as the critical issues pending to be addressed. Other major
participants also included Goldwind’s several long-term business partners including Mainstream, Engie, IFC, and
DNV GL etc., covering developers, sponsors, operators, lenders and consulting firms.
Goldwind Africa attended the AEF 2017 and made full use of the networking opportunity to meet with several
developers that are active in the African market, including Quantum, Mainstream, Old Mutual, Building Energy,
Elicio, Gaia, and Eleqtra. In addition, the business development team also engaged with financiers, EPC contractors,
renewable energy operators and wind association representatives from other major wind power countries.
International forums such as AEF serve as valuable channels for GWI regional subsidiaries or centers to maintain
and strengthen their communication with international clients as well as local and regional business partners.
AEF consists of an exhibition zone and a series of conferences and panel sessions, where energy plans,
challenges and opportunities in Africa’s energy development are discussed. In terms of developing Africa’s
energy sector, tapping the investment potentials from Northern European countries is one of the reasons that
the Forum was held in Denmark. Northern Europe has an advanced industry in clean energy technologies and
investment prospects in Africa, which could considerably benefit the sector’s growth in the continent.
13
White Rock Solar Farm in Australia achieved
Financial Close
On 10 May, Goldwind announced that White Rock Solar
Farm in northern New South Wales has achieved
Financial Close. The White Rock Solar Farm will be a 20
MW solar photovoltaic (PV) power plant located adjacent
to the northern end of White Rock Wind Farm, part of the
solar-wind hybrid renewable energy facility for the New
England Tablelands. It is expected to generate, in the first
year of operation, enough electricity to supply the
equivalent of approximately 7,200 average NSW homes.
“The award of a large-scale solar competitive grant by
the Australian Renewable Energy Agency (ARENA) has
led to White Rock Solar Farm achieving Financial Close.
The ARENA large scale solar initiative has been successful
in stimulating strong competition and innovation among
Australian solar projects.” Said Laura Jeffrey,
Development Manager for the project.
The project is designed to benefit significantly from
sharing part of the wind farm infrastructure, including the
grid connection and access tracks. This will maximise the
use of available facilities without requiring construction
of additional facilities elsewhere, which is estimated to
unlock over $5 million of savings. In addition, co-location
of wind and solar provides numerous benefits such as
complementary energy generation patterns, and
reduced environmental impacts and project cost.
The project investment of $41.4 million benefits from
$5.4 million funding support provided by ARENA
through its large-scale solar competitive round. The
remaining funding consists of $25million debt from
from the Agricultural Bank of China Limited Sydney
Branch and $11 million equity from Goldwind.
Construction is planned to commence in July 2017,
with a target for completion in January 2018. The
main engineering, procurement and construction
contract has been awarded to UGL. The project
expects to employ up to 75 people on site at its
construction peak and 3 people as ongoing
operational and maintenance staff. Like the White
Rock Wind Farm, the project will launch a Local
Business Participation Program as a key initiative to
identify capacity in the local community and
maximise opportunities for local suppliers to
participate in the project.
White Rock Solar is Goldwind’s second wind-solar
hybrid project following the 10MW Gullen Solar
project which is now at an advanced stage of
construction.
For those familiar with Goldwind
Australia’s White Rock Wind Farm,
here comes its sister project, White
Rock Solar Farm…
14
H.E. Mr Saleh, Chairman of Saudi Electricity Company,
Meeting with Goldwind Delegation
A meeting between Goldwind Delegation and Saudi Electricity Company was held on
16 May 2017 in Marriott Hotel in Beijing, where H.E. Mr Saleh, Chairman of Saudi
Electricity Company resided during his visit to China. Both parties exchanged views on
how to strengthen cooperation in Saudi wind power sector.
Mr Wu Kai, Executive Vice President of Goldwind extended warm welcome to Saudi
delegation led by Mr Saleh. Upon introducing Goldwind business development in the
global wind power market, Mr Wu Kai expressed strong support for cooperation in
Saudi’s wind power projects.
The two sides also discussed the possibility of a multi-dimensional partnership to
achieve mutual benefit and joint development.
Mr Saleh also congratulated Goldwind on its success in passing the pre-qualification
session, a first step to enter Saudi’s wind power market. He also highlighted the global
reputation of Goldwind and especially its achievement in China and Pakistan with its
mature technology and rich experience. Saudi Electricity Company attached great
importance to its cooperation with Goldwind. Saudi Arabia has rather solid and
mature industry foundation, especially in light of the localization of steam turbine
manufacturing in Saudi by a couple of Top 500 Companies including GE and Siemens.
These efforts had also paid off well.
Mr Saleh wished for further exchanges with Goldwind to seek for extended
cooperation in even broader areas, to witness joint development for both sides.
15
Above:Group photo with H.E. Mr Saleh, Chairman of Saudi Electricity Company (Left 5)
Below:H.E. Mr Al Salem, Vice Minister of Energy, Industry and Mineral Resources (MEIM) of Saudi Arabia
visited Goldwind Headquarters in Beijing
16
Goldwind headquarters in Beijing had the honour to receive H.E. Mr Al
Salem, Vice Minister of Energy, Industry and Mineral Resources (MEIM) of
the Kingdom of Saudi Arabia on 16 May. The Delegation of Mr Al Salem was
on a mission in Beijing for the Belt and Road Forum for International
Cooperation.
Mr Wu Kai, Executive Vice-President of Goldwind, and Mr Andreas Dupuis,
Deputy General Manager of Goldwind International, attended the meeting
with Mr Khalid Al Salem.
H.E. Mr Al Salem, Vice Minister of Energy, Industry and
Mineral Resources of Saudi Arabia Visited Goldwind
Saudi’s wind is about to blow......
While Goldwind has just been qualified
as a technical member to participate in
its renewable auction, the timing of
the visit was quite well spotted.
Mr Al Salem, in his competence as MEIM Vice Minister, also oversees Saudi’s National Industrial Cluster
Development Program (NICDP). As such, a wide coverage of agenda including national industry development
and investment promotion falls under his purview.
In effect, the timing of the visit is well-spotted. On 20 February, the Renewable Energy Project Development Office
(Repdo), affiliated under MEIM, launched the RFQ for the first round of Saudi renewable projects: 300MW for
solar and 400MW for wind. Goldwind International is privileged to be qualified as a technical member, and is the
only Chinese wind OEM that passed pre-qualification. The development of renewable energy projects in Saudi
Arabia is subject to a certain extent of localization requirement, with which foreign OEMs need to comply. Such
industrial development requirements fall under the purview of NICDP, and the meeting addressed the localization
policy for renewable projects.
Mr Al Salem briefly presented the background of Saudi renewable energy auction plan, its state of play and future
targets, as well as the role played by MEIM in the programme. He expressed concerns for Saudi’s over-reliance
on fossil fuel and the importance of renewable energy to diversify energy sources and to protect the environment.
In addition to promoting clean energy, Mr Al Salem also explained his vision to nurture the industrial chain for
Saudi’s national renewable energy sector. In light of this, MEIM expects the best efforts to localise supply chains
from foreign participants, and the Ministry would provide subsequent support.
Mr Wu Kai also highly praised Saudi’s determination to develop renewable energy. Goldwind Technology, as a
world-leading wind power solution provider, would like to work in all realms, including technology, localization
compliance and finance, with Saudi government to development wind farms.
17
From a practical perspective and the experience in South African wind market development, Mr Andreas
Dupuis also suggested that the local content policy should follow a heathy path; otherwise it would dampen
the enthusiasm of participating parties in pursuing the cause, or even stymie the nation’s renewable energy
ambition.
Mr Al Salem took note of the concerns and explained that several proposals were being deliberated in this
regard. Following the meeting, Mr Al Salem paid a visit to the factories in Site I and Site II of Goldwind
Headquarters in Beijing as well as Sinoma, one of Goldwind’s blade suppliers. Mr Al Salem spoke highly of
Goldwind’s achievement and expressed his wishes that Goldwind could bring the advanced technologies to
the Saudi market.
Strategic Agreement Reached between
Goldwind and PowerChina
On 23 June, Goldwind International Holdings (HK) Ltd. signed Strategic Cooperation Framework Agreement with
PowerChina International Group Limited in Beijing, which opened a new page for the two parties to jointly
develop international market.
Witnessed by Mr Wang Haibo, President of Goldwind, and Mr Song Dongsheng, General Manager of
PowerChina International, the cooperation agreement was signed by Mr Pan Yantian, General Manager of GWI
and Mr Mou Guanhua, Deputy General Manager of PowerChina International.
Mr Wang Haibo expressed gratitude to PowerChina International for their long-standing support to Goldwind, and
presented Goldwind’s international strategy and business deployment, new products and technologies, and
creative business models etc. Goldwind is the market leader in Permanent Magnet Direct Drive (PMDD) technology
and has been seeking new paths to develop global business. It continues to devote itself to R&D to reduce the
levelized cost of wind electricity, making the industry a more competitive sector compared with alternative energy
sources. The partnership will give full play of each other’s advantages to deepen cooperation, jointly exploring
various opportunities in the global market.
The meeting was held in an
amicable atmosphere, where Mr
Song Dongsheng expressed his
willingness to contribute with
PowerChina’s rich experience in
EPC projects and its marketing
channels to further cooperation
with Goldwind. Given the
favourable market conditions to
develop wind power, the joining-
hand of the two companies to
march into international business
will bring benefits for both parties.
18
The 2017 Astana Expo is themed “Future Energy”. This is the first
Expo hosted in a Central Asian country.
The theme of China Pavilion is "Future Energy and Green Silk Road",
focusing on tackling energy crises and promoting energy sustainable
development in the future.
The Xinjiang Week (28-30 June) activities further reflect the close
cultural and geographic ties it shares with Kazakhstan, endeavouring
to promote co-development and mutual benefits.
Kazakhstan Tour During Astana 2017 World Expo
The visit started with Nazarbayev University, a research-oriented
higher education institute where scholars and scientists are
nurtured and cultivated. Chairman Wu Gang had a constructive
discussion with the university Provost and Vice President for
innovation, and exchanged views with junior scholars on the
prospect of renewable energy and electric grid digitalization in
Kazakhstan. The University’s motto, “to lead, to innovate”,
demonstrates its emphasis on science and innovation, an
essential value resonated by Goldwind. The visit to Nazarbayev
University has elaborated the great emphasis Goldwind attaches
to talent training and the high expectation it holds on the
development of renewable energy in Kazakhstan.
The delegation turned to the power industry on the second day
when Goldwind delegation paid a visit to Kazakhstan national
grid company (KEGOC) and met with competent officials in
charge of grid connection and planning as well as renewable
power settlement. Upon a better understanding of the state of
play of Kazakhstan’s grid system and its renewable energy
development plan, Chairman Wu Gang then presented the
distinctive advantages of Goldwind turbines in terms of grid code
compliance, a feature highly praised by the counterparts.
The opening ceremony of the Xinjiang
Week in Astana World Expo also warmly
received Chairman Wu Gang, who later had
a constructive exchange of views with high
ranking officials from the China Council for
the Promotion of International Trade
(CCPIT) and Xinjiang Autonomous Region,
as well as with the Chinese ambassador to
Kazakhstan. Goldwind was privileged to be
selected as the only Xinjiang enterprise with
an exhibition booth in the China Pavilion, a
demonstration of both its technological
advancement and the company’s emphasis
on the Kazakh market.
From 26 June to 30 June 2017, Goldwind delegation, led by Mr. Wu
Gang, Chairman of the Board, visited Kazakhstan and participated
in the Xinjiang Week during the Astana 2017 World Expo themed
“Future Energy”.
The tour yielded fruitful results in mutual confidence-building and
agreed on a project MoU. The prominent importance of Kazakhstan
in Goldwind’s international strategy is self-explanatory.
19
During the China-Kazakhstan trade promotion fair, a Memorandum of Understanding (MoU) on
co-developing the Jungar Gates 72 MW wind farm project was also agreed upon between
Goldwind and two other Kazakh companies. Kazakh market has always been high on Goldwind’s
agenda and Goldwind has expressed in various occasions its determination to cultivate its
renewable energy industries.
To date, Goldwind has already set up a representative office in Astana and employed a local electric
engineer. It will continue to keep a close eye on the development of Kazakhstan energy industry
and potential market opportunities.
20
For the long-term and sustainable development of South
Africa’s wind industry, a capacity-building oriented
scholarship programme was launched by Goldwind
Africa. Half a dozen local technicians were selected as
participants to the programme. The launching of the
scholarship echoes the dedication of Goldwind Africa to
the local industry and community.
In support of enhancing skills development
in the Wind Industry in South Africa and
celebrating Global wind Day 2017, the
Trustees of Goldwind Africa Empowerment
Trust (GWAET) are pleased to announce a
scholarship for six local wind turbine service
technicians to undertake the newly
introduced Global Wind Organisation’s
(GWO) Basic Technician Training (BTT) at
SARETEC.
These six technicians recently completed
their 5 months wind turbine service
technician training at SARETEC and have
excelled on the program. The Director of
SARETEC, Naim Rassool is excited to partner
with Goldwind Africa Pty Ltd (Founder of
GWAET) in creating this opportunity for their
newly qualified graduates and mentioned
that: “SARETEC is currently in the process of
getting ready to be a certified GWO training
centre to offer both the Basic Safety Training
and Basic Technician Training and are
looking forward to offering the recently
launched BTT qualification to the top
students emanating from our most recent
training program.”
The GWO mentions that an objective for
them is to develop common industry training
and best practice Standards for health and
safety as a vital and necessary way forward to
reduce risks for personnel in the wind
industry working on site and to reducing
environmental risks across the wind industry.
According to GWO this Standard has been
developed in response to the demand for
recognizable Basic Technical Training in the
Goldwind Africa Launched Scholarship for Technician Training
21
industry, and has been prepared in co-operation between the members of GWO based on risk
assessments and factual incident and accident statistics pertaining to the installation, service and
maintenance of wind turbine generators and wind power plants.
Lungile Mashele, Chairperson of Goldwind Africa Empowerment Trust stated: “Skills development,
particularly in the renewables industry is extremely important for job creation as well as stimulating a
sustainable green economy. Further to that, GWAET believes in re-training so as to absorb potential job
losses from other sectors. We are proud of our students and wish them well in obtaining their
qualification.”
Jianqing Zhou, CEO of Goldwind Africa (Founder) stated “Our primary goal of the establishment of the
GWAE Trust is to support skills transfer in South Africa. Through project activities Goldwind Africa intends
to source traditional local skill sets and transform these skills into Global wind energy skills sets. Whilst
there are delays in financial close and uncertainty of SA renewable energy markets progressing, we are
glad to be able to support the advancement of Wind Service Technician graduates enrolled in the GWO
programme.”
22
According to the latest quarterly market update of
Bloomberg New Energy Finance (BNEF), core markets
across EMEA, APAC and North America have yet again
smashed records with bumper 1Q 2017 installation
figures. Meanwhile Latin America grinds to a halt after
auction delays in Peru and Argentina and cancellations
in Brazil. Offshore wind made headlines in April after
three projects won the right to build zero-subsidy
offshore wind in German waters.
Short-term onshore demand forecast: BNEF expects
some 54.3GW of installations in 2017 – 2% more than
2016 which was the second-best year on record.
Medium to long-term onshore forecast: BNEF
maintains its outlook that activity will continue to pick
up after 2018. This will be driven by growth in the US
and emerging wind market of India. European
demand remains flat but the region will continue to
punch out 10 GW annually until 2020.
EMEA: Europe has carried its form from 2016 into
2017. BNEF expects the region to commission 12.9
GW of onshore wind with core markets of Germany,
the U.K. and France putting in the hard work.
Meanwhile, Turkey is set to post another 1GW+ of
capacity in 2017.
AMER: The U.S. commissioned 1.7GW of capacity in
1Q 2017– the largest since 2012 – for new onshore
wind. These projects are likely part of the first push of
projects that qualified by year-end 2016 for the 100%
Production Tax Credit (PTC). It is expected that the
Americas region will install 11.9GW of onshore wind
this year, of which 7.5GW will be located in the U.S.
APAC: Onshore wind curtailment in Northern China
continues to affect new-build capacity in 2017.
Meanwhile India is tearing up the rule book, after
installing more capacity in 1Q 2017 than it did during
the whole of 2016. In Thailand, the outlook for new
build is positive after the government confirmed that
the approved wind projects will continue as planned.
Q2 2017 Global Wind Market Overview,
State of Play and Short-Term Forecast
III. Global Wind Industry Insight
23
Offshore: Dong and EnBW have both won the right to build zero-subsidy offshore wind projects in
Germany’s first transitional auction. These results come after back to back record bids in the 2016
Danish and Dutch tenders. Despite being good news for the sector, Dong and EnBW still need to
make a final investment decision and could in theory pull out of the development, forking out 54
million euros and 90 million euros respectively in penalties.
Project financing and investment: Total new-build asset finance in 1Q 2017 dropped 21% from 4Q
2016 to $18.0 billion, and dropped 41% from 1Q 2016, making 2017 the lowest first quarter since
2013. European investment in new-build has flat lined the last three rolling quarters contributing to
general decline in investment.
Supply chain: Turbine manufacturer results are mixed. Both Vestas and Siemens Gamesa
Renewables reported strong earnings for 1Q 2017, but Nordex and Senvion have fared less well,
reporting earnings losses over the same period. BNEF maintains its turbine pricing index (China and
global) as well as operation and maintenance prices.
24
Editor’s note: In our quarterly release, we aim to
select one key country market from each of the seven
regional centers of Goldwind International, and
present briefly the recent development and short-
term forecast of the market. We take reference from
the data and analyses of third-party consultancies
including MAKE and BNEF. [p.24-26]
United States
Though US announced withdrawal from
Paris Agreement, its public and private
commitments to renewable energy will
help off-set some of the negative impacts.
The extended Production Tax Credit (PTC)
has pushed for an installation rush, to
continue till 2020. However, renewed PTC
policy has been equipped with sunset
provisions: dropping to 80%, 60% and
then 40% of its current value until it is
phased out by year-end 2019. For now,
only 80% of the PTC is available for
projects that start construction in 2017,
which is expected to hit the industry after
2020. Another uncertainty lies with tax
reform, which may also deter investment
in new projects.
The US market projections for the upcoming years:
USA (MW) 2017 2018 2019 2020 Subtotal
BNEF 7,471 8,526 9,387 10,910 36,292
MAKE 7,300 10,000 10,188 12,282 39,770
Turkey
Turkey has announced a 1GW onshore
wind project, which will be open to
bidders on June 27. The winning bid will
be eligible for a 15-year fixed feed-in
tariff (FiT) under a ceiling price of
$7/MWh, which is below the current 10-
year FiT of $7.3/MWh. However, reduced
wind tariff poses only one of the
challenges faced by bidders, a more
stringent local content requirement
another barrier.
Turkish market projections for the upcoming years:
TUR (MW) 2017 2018 2019 2020 Subtotal
BNEF 1,062 1,148 1,048 948 4,206
MAKE 825 715 1,325 1,400 4,265
Thailand
Although Energy Regulatory Commission
(ERC) had stopped accepting utility-scale
(<10MW) application for wind, existing
project pipeline in Thailand may finally speed
up the progress after Agriculture Land
Reform Office (Alro) confirmed that land
issues for already approved wind projects
were resolved. Competitive bidding scheme
with ceiling prices is not expected to publish
before 2018.
Thai market projections for the upcoming years:
THA (MW) 2017 2018 2019 2020 Subtotal
BNEF 193 312 200 300 1,005
MAKE 68 143 180 200 591
GWI Key Markets Outlook
25
Brazil
The Brazilian market is projected to continue
facing challenges and uncertainty in 2017. New
auctions are unlikely this year due to economic
recession and power oversupply. An auction for
developers to exit from their PPA contractual
obligations has been held, which bodes ill in the
short-term Brazilian market forecast.
South Africa
The REIPPPP has built up a large project pipeline,
but progress on the 4th
round has been put hold
due to South Africa’s state-owned utility’s
(Eskom) reluctance to sign PPAs. Nonetheless, the
President has announced that Eskom would
resume Round 4 projects, showing support from
the government on renewables.
Australia
Australian market is currently undergoing
shortfall of Large-Generation Certificates (LGC),
which has boosted high LGC price over AUD 85.
Market forecasts have been revised up due to
developers advancing projects aggressively to
capitalize on current certificate prices ahead of
the national large renewable energy target in
2020. Investment activities in renewables have
also seen increase.
Brazilian market projection for the upcoming years:
BRA (MW) 2017 2018 2019 2020 Subtotal
BNEF 1,260 2,760 1,232 1,920 7,172
MAKE 2,000 2,300 1,150 1,025 6,475
(Note: BNEF data is cited from a separate industry insight on BRA market, dated
21 June.)
South African market projections for the upcoming years:
ZAF (MW) 2017 2018 2019 2020 Subtotal
BNEF 636 710 668 687 2,701
MAKE 573 300 700 685 2,258
Australian market forecasts for the following years:
AUS (MW) 2017 2018 2019 2020 Subtotal
BNEF 415 791 1,565 100 2,871
MAKE 753 925 700 800 3,178
26
Saudi Arabia
Saudi Arabia’s National Renewable Energy Program (NREP) announced its shortlist of 24 bidders
qualifying for the first three rounds of renewable auctions. The first round wind project auction is 400MW
wind farm in Dumat Al-Jandal. The shortlisted bidders are categorized into managing members and
technical members. The winning projects, due online no later than 2019, will be the first step to Saudi
Arabia meeting its ambitious target of 9.5GW of renewable energy capacity by 2023. A second 400MW
wind auctions is set to open later this year. A 30% local content requirement will most likely apply for
renewable projects.
List of qualified bidders for wind projections (Goldwind is qualified as technical member):
Round 1 Managing + Technical member Managing member Technical member
Wind Acciona, Cobra Instalaciones y
servicios, EDF Energies Nouvelles,
Enel Green Power, International
Power (Engie), Gamesa, GE,
Marubeni, Masdar, Mitsui, Toyota
Tshusho
ACWA Power, JGC
Corporation, Kepco,
Nebras Power, SNC-
Lavalin Arabia, Sojitz
Elecnor, Enercon,
Goldwind,
Iberdrola, Siemens,
Voltalia, Vestas
Goldwind International Quarterly
Q2 2017, Volume 8
Editorial Office
Marketing & Business Development Department,
Goldwind International Holdings (HK) Limited.
Address
No. 8 Boxing 1st Road, Yizhuang BDA,
Beijing, China
Enquiries
Ms Yolanda Yan: yanyu@goldwind.com.cn
Media Contact
Ms Sofia Zheng: zhenglei2@goldwind.com.cn
GWI website
For more information, please visit our website
www.goldwindinternational.com
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