trade council of denmark, beijing, cpower hina · wind turbine producers —— international 13-15...
TRANSCRIPT
1
Jun
e
20
10
CHINA WIND
POWER
NEWSLETTER
TRADE COUNCIL OF DENMARK, BEIJING, CHINA
Contents
Editor’s Words 1
Insight of the Month
Industry Development Overview
2
3-4
Wind Farm Investor
Wind Turbine Producers —— Local
5-6
7-12
Wind Turbine Producers —— International 13-15
China Corner: XEMC
DWEG China News
16-17
18
Editor’s word:
By ‘China Corner’ sector of the newsletters from March 2009, we have introduced all the important
provinces in China regarding wind development. I hope you have got a better picture through reading them.
From this edition, we will start to introduce Chinese turbine manufactures in ‘China Corner’ part. Everybody
already knows international players like Vestas, Siemens Wind and GE. And I believe you have heard enough
of Top 3 domestic ones as Sinovel, Goldwind and Dongfang. But we’d like to tell a bit more about some
promising companies though they are not market leader yet.
This time you will find detailed information of XEMC. It was ranked #7 in 2009 in Chinese market with a
market share of 4%.
Subscription:
The price for half a year’s reading is DKK 2,700. Please email Liang Wanliang ([email protected]) for subscription.
Members of DWEGC (Danish Wind Energy Group China) will receive the newsletters
of 2010 directly from Angela Zhang, since Danish Export Association has reached a
group subscription agreement with Danish embassy in Beijing.
A-PDF Merger DEMO : Purchase from www.A-PDF.com to remove the watermark
2
As everybody can see, installation of wind power and production of wind turbines have grown in a
rapid speed in China. China is not only the largest wind market but also the biggest production base all
around the world. But, it may not be seen by everybody that the lowering of wind turbine prices is
going to hurt the industry.
INSIGHT OF THE MONTH
Wind turbine is the major part of wind investment, which is about
70% of the construction cost for wind parks. ‘Recently in many
bids, the bidding prices from quite a few turbine manufactures are
lower than 5000 RMB per KW. I have been working in this industry
for many years but I still don’t know how they can make it and how
they do the calculation’, Said by Mr. He Dexing, the Chairman of
Chinese Wind Energy Association. ‘The lowering of production
costs should be in a rational range. Otherwise the market will
suffer. We’ve seen some collapse of newly installed wind mill. As a
manufacture, you can’t gain the market and yourself will be ruined
also, if you don’t invest in quality.’
The decreasing of wind turbine price has been the truth duri
ng past years. It was 6700 RMB per KW in early 2007, and
6300 RMB in 2008. When it came to end of 2009, it was as
low as 5000 RMB per KW. A lot of manufactures claim there
is still space to lower costs and prices.
Mr. He Dexing also mentioned, China is already large country
regarding wind turbine production. But there is a long way to go
from a big producer to a strong and leading producer. Quality
should be the key word on this way.
Challenges to Danish Sub
Suppliers:
Low Price of Chinese Turbines PRICE
3
First Offshore Concession Will Take Place in September
Price of Electricity Takes 60% Weight
The year of 2010 is year of offshore wind power for China. Following are some
news about the bidding of China’s first national concession program on offshore
wind development.
INDUSTRY DEVELOPMENT OVERVIEW
China’s first national concession program on offshore wind
development has attracted enough attention from months ago. It’s
said that the bidding documents have been issued from May 18.
The tenders have 4 months for preparation before the bidding
which is going to take place in September.
Official from NEA (National Energy
Administration) mentioned recently that the price
of final electricity will take only 60% weight of the
first offshore concession program. The other 40%
will be on the rationality of tender’s whole
solution on construction and operation. In this
way the situation of ‘project taken by the lowest
price’ will likely be avoided.
The officer also talked a bit about how the prices
will be considered. When the prices are collected
from all tenders, the highest one and the lowest
one will be taken off. They will calculate an
average price of the rest. The standard price will
be 10% lower than the standard price. The tender
will get higher marks if their bidding price is
closer to the standard price.
4
Electricity Price is Sensitive
Proper Functional Division to be Set
Tenders Should Deliver a Package Solution
The First Concession, The First Test
INDUSTRY DEVELOPMENT OVERVIEW
Price is no doubt the most important element for developers and
manufactures. The final electricity from offshore wind parks will be
more expensive than onshore ones since the construction costs are
much higher.
The only offshore reference case in China is Donghai Bridge project
in Shanghai. And the price of its electricity is 0.978 RMB per KWh.
The officer believes the first concession will come up with a lower
price than Donghai Bridge project due to competition between those
tenders.
The concession bidding this time is looking for ‘combined’ tenders,
which means the tender should be a union of wind farm developer,
turbine manufacture and offshore installation company. It will be
interesting to find out who will cooperate will whom at the bidding.
China has little experience regarding offshore wind
development. We can feel that the government wants to use
the first concession program as a test, to formalise a detailed
strategy and plan on China’s offshore wind market.
Especially, it will be a practical test on pricing structure and
subsidiary of offshore wind electricity.
5
WIND FARM INVESTOR
Longyuan keeps pace with China’s wind market
China Longyuan Power held Shareholders Annual
Meeting in Hong Kong on May 27th. Longyuan
introduced last year’s business conditions and
reported a net profit attributable to parent
company (China Guodian, one of ‘Big 5’ power
companies) of 894 million RMB, increasing by
165.3%.
For the year of 2009, Longyuan has
performed well and kept a rapid growth
of wind power installation and total
operating capacity. 41 new wind
projects have been constructed and
contributed a newly installed capacity of
2 GW. By the end of 2009, Longyuna’s
total installed capacity of wind power
reached 4.5 GW, remaining in the first
place in Asia and fifth worldwide.
Meanwhile, it added a new wind power
reserve capacity of 16 GW and reached
the total amount of 45 GW.
Longyuan generated 6.2 billion kWh wind electricity which is an increasing of
69.9% from the year before. The average availability of wind turbines was
97.69% and the average utilization time were 2268 hours.
6
On the Fifth Chinese Renewable Energy Sources
Investment and Financing Forum, Jia Nansong, the
Board Secretary of Longyuan stated, Longyuan
would attach great importance to offshore wind
power which was considered to be a new business
point of growth. Longyuan has attended China’s
first offshore concession and is preparing bid
proposal now.
After listed on Hong Kong stock market, Longyuan
is now well financed. It was disclosed that Longyuan
would still focus on domestic market but would try
to expand overseas market at meanwhile. It would
be more of direct investment instead of purchasing.
At present Longyuan has investment intents in USA,
East Europe and South Africa. Among them,
cooperative development agreements have already been signed and the preliminary
phase has been put in operation in South Africa.
In 2010 Longyuan would like to generate 10 billion kWh wind electricity which is 60%
more than the amount of 2009. Longyuan will also work hard for newly increasing
wind power installed capacity of 2 GW, and reaching the total amount of 6.5 GW at
the end of 2010.
WIND TURBINE PRODUCERS —— LOCAL
Longyuan’s Major Regional Wind Areas
7
WIND TURBINE PRODUCERS —— LOCAL
Manufacturers: Time to Play
Gearbox from DHI·DCW Group Gets GL Certificate
May 24 to 26, the gearboxes made by DHI·DCW Group
have passed the on-site inspection by experts from GL
(Germanischer Lloyd) Wind Energy. This certification
indicates the R&D capacity of DHI·DCW Group on supply
chain especially gearbox has reached a new level. It also
forms a solid foundation for future development in
Chinese market and expanding to overseas market.
DHI·DCW Group is the mother company of Sinovel. Sinovel is now the largest turbine manufacture in
China’s wind market (Close to a quarter of market share in 2009). Within DHI·DCW Group different kind of
components can be supplied to Sinovel.
From 2008, DHI·DCW Group started to work on R&D of gearbox, yawing, pitch control, control system, hub
and foundation for 3 MW turbine. In February 2009, the first 3 MW wind turbine for offshore and onshore
was off lined in Sinovel. And now 34 sets turbines of this type have been installed in China’s first offshore
wind farm – Donghai Bridge project in Shanghai.
8
WIND TURBINE PRODUCERS —— LOCAL
The global first 2.5/3.0 MW ultra compact wind turbine
came off the production line in Mingyang Electric
The 2.5/3.0 MW ultra compact wind turbine of
Mingyang Electric came off the production line
on May 29th in Zhongshan City, Guangdong
Province. It indicates a new height for turbine
production in China’s wind power industry. It’s
also meaningful for promoting the development
of China’s offshore wind power development.
Mingyang and German company Aerodyn have spent 3 years on research and
design of this new type of wind turbine especially according to the characters of
offshore development. It gathers the merits of international and domestic wind
turbines. The drive chain consists of main bearing, two stage planetary gears and
permanent magnet synchronous generator, with a lighter weight, a compacter
composition, a smaller volume and higher efficiency than traditional 1.5 MW
doubly fed generators (DFIG). The offline of this wind turbine indicates that the
full range of products from 1.5 MW to 3.0 MW of Mingyang has already been
formed.
Mingyang Electric is one of the five manufacturers who are engaged in new energy
equipments production including megawatt scale wind turbine systems. Last year
Mingyang realized a turnover amounted to RMB 5 billion. It delivered wind
turbines of 630 MW. So far it has manufactured wind turbines with an
accumulated amount of 1.2 GW. Mingyang persists in independent innovation and
has capability in design and developing MW scaled wind turbines.
9
Just at the rollout ceremony, Yangming Wind Power signed a series of agreements.
WIND TURBINE PRODUCERS —— LOCAL
Strategic Cooperation Agreement with Huaneng
New Energy Holding Ltd.
Strategic Cooperation Agreement on Lease
Operation with ICBC Financial Lease Company
Framework Agreement for Joint Venture of
Offshore Wind Power Engineering Company with
China Zhongtie Major Bridge Engineering Group
General Contract on Dabancheng 50.75 MW Wind
Power Project with Xinjiang Huaran New Energy
Ltd.
Further Agreements for Strategic Cooperation
with ICBC Guangdong Branch concentrating on
domestic comprehensive and outbound financing
business
Framework Agreement on Guangdong Yangming
New Energy Industrial Park Investment with
management of Zhongshan Torch High-tech
Industrial Development Zone.
Including:
Basing on the agreement for joint
venture between Mingyang and China
Zhongtie, these two companies will be
combined as a tender for the first
offshore concession (more info see page
3-4) bidding. Mingyang is of course the
turbine manufacuture and Zhongtie will
be the installation company.
Special:
10
WIND TURBINE PRODUCERS —— LOCAL
Goldwind Moves from Turbine Manufacturer to Solution Provider
At the same time of keeping high speed of stable growth, Goldwind
has successfully moved from a single wind turbine manufacturer to a
wind power whole scheme provider.
On an investor conference the president of Goldwind Wu gang stated
that Goldwind had bonded its advantages in market, technology and
capital to realize its vertical and horizontal integration. Goldwind
would become the discoverer and creator of value in wind industry.
Eight years ago, Wugang’s dream was to produce direct drive wind
turbines. At present, Goldwind has already put nearly 2000 sets of
1.5 MW permanent magnet direct drive turbines into operation.
They have been well regarded for stable running and high efficiency.
The prototypes of 2.5 MW permanent magnet direct-drive and 3.0
MW mixed-drive wind turbines developed by Goldwind itself have
started testing at Beijing Guanting wind farm and Dabancheng wind
farm.
From turbine manufacturer to solution provider
‘Now we are enjoying the value generated by direct drive’, Wu Gang stated with pride. Goldwind is the
only domestic company experiencing the general circulation of designs, manufacturing and
industrialization in China’s not long wind history, and also the only one with the ability to derive dozens
of sequences from one machine type.
Goldwind has also made great achievements on wind farm development. Goldwind’s wholly owned
subsidiary Beijing Tianrun New Energy Investment Co. has set up 14 wind companies in either sole
proprietorship or purchasing way. In this way it brings the competences of Goldwind and regional wind
resources in integration. It has been proved to be very successful, vice president of Goldwind Wang
Haibo said.
Meanwhile, the globalization strategy included product research internationalization, human resource
internationalization, and market internationalization has already been implemented, and made
significant progress.
Wu Gang said, these strategic works has been matured in 2009 and it is helping Goldwind to
accomplish its plan to be listed in Hong Kong stock market. Now what Goldwind would have to do is to
cultivate its core competences such as wind energy technology, manufacture, service and project
development, then provide systematic solutions to domestic and overseas customers.
11
What is more, Goldwind has established its
overseas development recently. After successfully
kicking off the listing plan in Hong Kong stock
market, it has signed a financing contract amounted
6 billion RMB with CDB (China Development Bank),
for the purpose of expanding international market.
The president of Goldwind Wu Gang led his team take participate in the USA Dallas
wind power convention and announce that American Goldwind, the wholly owned
subsidiary had founded.
Goldwind in USA was registered late in 2009 with office located in Chicago. The goal
is to provide total wind power solutions to North American market included sales,
service, manufacture, etc. It is an important component of Goldwind’s globalization
strategy.
Besides, the wholly subsidiary of Goldwind in Australia has recently established and
started to operate.
WIND TURBINE PRODUCERS —— LOCAL
Overseas Establishments
12
The blade length of this 3.6 MW wind turbine
reaches 56 meters. Its rotor diameter reaches
116 meters and the hub height will be 90 meters.
It’s claimed to have advanced anticorrosion
system and excellent aerodynamic performance,
also easy for installation and maintenance.
WIND TURBINE PRODUCERS —— LOCAL
3.6 MW wind turbine introduced by SE Wind
Shanghai Electric Wind Power
(SE Wind) has declared that China’s
most advanced offshore wind
turbine with a capacity of 3.6 MW
will come off the production line in
June and be installed at SE wind’s
test plant by the Donghai Bridge. It
is an important chip for SE Wind to
lead the Chinese offshore wind
market. Donghai Bridge
To face the fierce competition in Chinese market, SE Wind has enhanced its production
capacity. The construction of manufacturing base in Lingang, Shanghai has been
finished. This base covers more than 40,000 m2, with a production capacity of 1500
sets and also a testing system for wind turbines. The second base located in Jiangsu
province will be completed in the coming August as well. Shanghai Electric expects its
sales for the next year to reach 8 billion yuan, and further more than 10 billion in 2012.
13
The global wind energy leader Vestas has recently started its second phase wind turbine
production project located in Hohhot, capital of Inner Mongolia, China.
The president of Vestas China, Jens Tommerup said, the second phase of this factory could
produce products which can apply for different wind conditions and involved all parts of
business such as research and development, production, sales, transportation and after
service.
After the completion of the second phase, this manufacturing base would become the
technology leader for similar products in the industry, which indicates that the capacity of
Vestas in Inner Mongolia will serve both of the internal market of China and the international
wind power market.
The construction of Vestas’ manufacturing base located in Hohhot was started from 2008
July. The first phase has started operation from 2009 April, was having now an annual
production capacity of 800 sets of 850 KW turbines.
WIND TURBINE PRODUCERS —— INTERNATIONAL
Vestas Starts its Second Phase
Wind Turbine Production Project
in Inner Mongolia, China
This Vestas project is located in Hohhot Jinshan
Development Zone, and covers a vast area of 333,000
m2, with a construction scale of production capacity of
800 sets of 850 KW wind turbines each year. Its total
investment is 90 million US dollars, of which
investment on fixed assets is 77 million and working
capital is 13 million dollars. All of capital comes from
Vestas itself.
14
GE Wind Power published a set of data which indicates that its first quarter energy
business revenue is 7.2 billion dollars, falling 7 percent compared with the same
period last year. Revenue from wind power has declined the most, showing a number
of 20 percent.
Data published by AWEA indicates, in the first quarter of 2010 America merely added
539 MW of wind power installed capacity, falling 82.5%. It is the lowest quarterly
number among the last three years. However, USA mainland is just the most
important market for GE Wind Power.
China National
Investment &
Consulting Co.
WIND TURBINE PRODUCERS —— INTERNATIONAL
The First Quarter Data Shows
A Big Slump of GE Wind Power
The Chief Researcher for CIC consultants in Energy Industry stated,
the reason for the big slump of GE Wind Powers revenue is the
downturn appearing on USA wind energy market.
The newest Investment Analysis and Prospect Forecast of Chinas
Wind Power Industry for the years from 2010 to 2015 by CIC
consultants indicates, the downturn of USA wind power market
not only affects GE’s performance. The total revenue for the first
quarter of Industry giant Danish Vestas is only 75.5 million euro,
also falling by 32 percent in comparison with the number of
110.5 million for the same quarter of 2009.
15
However, the downslide of GE Wind Powers performance is perhaps just temporary. GE has
recently strived to develop on a global scale to reduce dependence on USA market and
operational risks.
WIND TURBINE PRODUCERS —— INTERNATIONAL
GE’s New Development
Opputunities in Europe & Asia
On March 25th, 2010 it’s announced to invest
340 million euro to expand the development
of production, design, engineering and service
facility of wind turbines in four countries in
European (Britain, Norway, Sweden and
Germany). European Union expects wind
energy to supply more than one fifth of
Europes power needs by 2020. Merely in the
offshore wind power field, EU plans to raise
the total installed capacity from the existing
1.5 GW to 150 GW of the year 2030. It is a
great opportunity for GE to develop its wind
power business.
Besides, GE Wind Power is developing
faster and faster in Asia. GE declared at the
end of 2009, it would recover the Indian
business and construct 300 sets of 1.5 MW
wind turbines in South Indian. The reason
was Indian government had improved its
incentives. Also in September, 2009, GE
Wind Power indicated that its sub-divisions
were seeking for opportunities for joint
venture, for the purpose to expanding its
business scale of wind power in China.
16
China Corner
Xiangtan Electric Manufacturing Corporation Ltd.
Hunan Province
Hunan Province
Xiangtan City
Xiangtan Electric Manufacturing
Corporation Ltd. (XEMC) is a long
established mechatronics (mechanical
and electronic) company. It has
advantages in synthesis techniques and
product support ability, and leads in
development and manufacturing in the
same industry of China. Its principal
activities include the production of
wind turbine and related components,
AC motors, DC motors, mass transit
vehicles, water pump, etc.
17
XEMC sold 244 sets of wind turbines in 2009 and the number is expected to be 500 sets in 2010
and increase to 750 in 2011. Now the sales contact for 2010 has been basically determined.
XEMC can expect a 100% growth rate on total revenue this year.
China Corner
For China 2010 is the kick-off year for offshore wind. Xiangtan
Electric shows strong competence in this aspect after
purchasing Dutch company Darwind.
The wind business of XEMC could be divided into two parts,
one is manufacturing of wind turbines, and the other is the
development and production of key components including
generator, converter and main bearing. Besides 2MW
permanent magnet direct-drive wind turbine which has
already been put into mass production, the prototype of
2.5MW turbine with independent intellectual property has
come off the production line and the most design tasks of
3.6MW and 5MW turbines have been finished and are striven
for launching in 2010.
XEMC is producing the key components by itself, which can
help to reduce costs. For example, the R&D of converters for 2
MW direct-drive turbines has come to an end and will enter
mass production phase soon.
Another example, XEMC and bearing company Timken’s joint
venture Timken XEMC bearing Ltd. has entered into pilot
production phase. The company was designed to have an
annual capacity of 300 sets main shaft bearings for 2 MW
direct drive wind turbines.
18
Wind power is a key industry that Trade Council of Denmark in China is looking
at. We have built up network with wind companies, associations and also
relevant government agencies.
During preparation of this edition, we not only selected news from Chinese
media and translated them into English, but also talked to people in our
network to get latest and most reliable information. In upcoming editions, we’d
also like to have articles like interviews, introduction and comparison of
different locations and industrial parks in China, deep insight of major players in
Chinese wind market.
We are looking forward to hearing your comments and suggestions. Our goal is
making this China wind power newsletter a valuable handbook for all Danish
wind companies.
- Liang Wanliang
- Xing Xiaoxing
- Henrik Martens
Editor’s Contact:
LIANG WANLIANG / [email protected]
Commercial Officer, Trade Council of
Denmark, Beijing, China
Tel: +86 10 8532 9983
Fax: +86 10 8532 9999
HENRIK MARTENS / [email protected]
Commercial Counsellor, Trade Council of
Denmark, Beijing, China
Tel: +86 10 8532 9981
Fax: +86 10 8532 9999
DANISH EMBASSY
1 DONG WU JIE, SAN LI TUN / BEIJING
100600 / P.R. CHINA
PHONE +86 10 8532 9900 /
WWW.AMBBEIJING.UM.DK
Danish Wind Energy Group China
Danish Wind Energy Group China
Danish Wind Energy Group China (DWEG China) was established on the 1st September, 2009 to service the Danish Wind Industry in
China and currently consists of 49 member companies. All companies are highly specialized Danish Wind Turbine sub suppliers, and are
very active on the Chinese market.
The network serves as a local forum where members meet and discuss common challenges and set up new initiatives in the market. As a
member you get access to a network of experience, knowledge and connections.
____________________________________________________________________________________________________________________________________________________________
DWEG China VIP Event in Expo 2010
DWEG China hosted VIP RECEPTION in the
Meeting and Business Event Area in the
Danish Pavilion at the EXPO2010 on May 31
successfully. Almost 70 participants including
12 member companies e.g. IFU, Hempel, LHG
Group, DAFA, Zero-max, Blue Water, Lund &
Sorensen, AVN Energy, CC Jensen, Electricon,
Svendborg Brakes, NIP, as well as VIP guests
from SIEMENS Wind Power, Vestas, Sinovel,
SEWIND, and etc.
Mr. Michael Norgreen, Director of Engineering
Asia Pacific, and Mr. Gregory Glen, Sales
Manager China, Offshore, SIEMENS Wind
Power, delivered a very interesting speech
about the Offshore Wind Power. Ms. Anette
Eberhard introduced how the Danish State
Export Credit (EKF) can help the Chinese and Danish Wind Energy Company. Mr. Morten Sondergaard, Senior International Technical
Advisor of WED presented how to benefit from the results of the Danish Chinese Wind Energy Program. Finally, Mr. Christopher Bo
Bramsen, Commissioner General of Denmark made a fantastic introduction about the story behind Pavilion and the little Mermaid.
After enjoying the good atmosphere at the dinner time, all the Chinese VIP guests have been given a newly published book – The Little
Mermaid written by Mr. Christopher Bo Bramsen. The participants also visited Danish Pavilion, French Pavilion, Belgium Pavilion and
Italian Pavilion together.
Danish Wind Energy Group China
Offshore Wind China 2010, Shanghai, June 7- 9, 2010
A Danish Pavilion will be organized for DWEGC members in Offshore Wind
China 2010. As the door opener, DWEG China will promote Danish Offshore
Wind Technology by joining this exhibition as a National Pavilion. 11
companies, including Resolux, Baltship, K2 Management, Liftra, Densit(ITW),
Niebuhr Gears, AVN Energy, Mita-Teknik, Hempel, COWI and Svendborg
Brakes joined the national pavilion. Meanwhile, AVN Energy, HEMPEL, COWI
and Mita-teknik will also deliver presentations and attend the panel
discussion during the conference held in Sheraton Hotel.
Member Company who will be in the Danish Pavilion:
Company Keyword Company Keyword
AVN Energy Hydraulic and cooling system Liftra Lifting and transport equipment
Baltship Project shipping Mita-Teknik Control systems
COWI Design, operation, maintenance Niebuhr Gears Gears
Hempel Coating Resolux Standard light fixtures
ITW polymers and fluids products Svendberg Brakes Hydraulic brake systems
K2Management Consultancy business
Wind Power Asia, Beijing, June 23 - 25, 2010
The Danish Wind Energy Group and its members are going to Wind Power Asia, June 23 - 25, 2010. 10 member companies will join the
national pavilion, including AVN Energy, Blue Water Shipping, Electricon, Eltronic, Fritz Schur Energy, Hydra-Grene, Lund&Soerensen,
NIBE Wind Components, OLAER DK, Avendborg Brakes.
More information about DWEG China’s activities, please visit www.dk-windchina.com
____________________________________________________________________________________________________________________________________________________________
DWEG China Members
Danish Wind Energy Group China
Address: Rm1703, 1277 Beijing Xi Rd, Shanghai
Contact person: Angela Zhang
E-mail: [email protected]
Website: www.dk-windchina.com