By Joao Alves, Vice President, Capital Eight, on Tuesday, 11 November 2008
The rapid pace of growth and the environmental impacts of a coal-based economy have led China to look at renewable energies for sustainable development. Government action and private initiative are creating one of the largest Alternative Energies producers in the world, with Wind Power taking a prominent position and major foreign companies already present or looking to enter the market.
In today's context of scarce and expensive traditional energy sources, renewables are once again becoming a more and more popular alternative worldwide. China's specific situation is nowadays especially important for several reasons, including:
- The sheer size of the country its population, which in 2007 accounted for 16.8 per cent of the worldwide consumption of primary energy (only surpassed by the United States);
- Its economic growth and resulting increase in energy needs (10 per cent per year since 2000), both for producing goods and to meet improving living standards;
- The environmental impact of traditional energy sources (China depends on coal for 69 per cent of its energy) and the uncomfortable position of being one of the world's two largest emitters of CO2;
- Its geological features, in which the existing reserves of oil, natural gas and coal might be completely used in 15, 30 and 80 years respectively;
- China wanting to be, as much as possible, self-sufficient energy wise (and, hence, the ongoing acquisition of foreign energy assets, in Africa, Asia and even Europe).
- The increased use of renewable energy sources would address all these issues, at least partially. However, by then end of 2006, renewables accounted for just 7 per cent of China's total primary energy consumption.
Government Guidance
The Chinese Government has been stepping up its efforts in fostering the development of alternative energies. This becomes clear if we look at four key documents:
- The Renewable Energies Law, issued in February 2005 ("Law"), that establishes the general guidelines for the industry in areas such as pricing, cost sharing and financing, among others;
- The Medium and Long-Term Development Plan for Renewable Energy in China, published in September 2007 ("Plan"), stating that by 2020, 15 per cent of all energy should come from renewable sources, with a 30 per cent share by 2050. By 2020, according to the Plan, 300 GW of hydro capacity, 30 GW of wind, 30 GW of biomass and 1.8 GW of solar energy should be installed;
- The Catalogue for the Guidance of Foreign Investment Industries, amended in October 2007 ("Catalogue"), which places the "construction and management of new energy power plants (solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.)" in the Encouraged Industries category;
- The White Paper: China's Policies and Actions on Climate Change, released in October 2008, that places an emphasis on energy conservation and optimisation of the energy mix, namely by reducing the role of coal as the primary energy source.
The Specific Case Of Wind Power
According to data from the European Wind Energy Association, China was the fifth-largest wind energy producer worldwide at the end of 2007. With an installed capacity of 6GW (3.5GW installed during 2007 alone), it still trails Germany (22.2GW) and Spain (16.8GW) by a large margin.
While these figures show that there is still a reasonably wide gap between the 6GW of installed capacity and the 30GW objective for 2020, the truth is that at this rate, the Government's goals seem very conservative. Greenpeace has stated that by 2020 China will have 50-100GW of installed capacity, while China's National Development and Reform Commission (NDRC) has been quoted as admitting that 120GW is a more likely scenario by 2020. Considering the official surveys that estimate a 1000GW feasible wind power capacity, this seems well within reach.
A couple of areas have been subject to most attention and investment: the first one is in the North-Northwest, especially in Inner Mongolia and Xinjiang; the second area is along China's coastline, from Shandong all the way around to Guangxi. Additionally, offshore wind resources, although less explored, offer the greatest promise.
However, two very significant barriers have stood in the way of foreign investment in such a high potential industry: 1) the bidding system used to award major projects. Chinese companies tend to win the largest, centrally awarded projects by proposing to sell electricity to the grid at very low prices. These companies are apparently not so concerned with making money from renewables as they are with having a certain percentage of alternative energies in their energy portfolio, in order to meet Government demands; and 2) in a country where the market has little say in energy prices (the most notable cases being the low gas prices that have lead the government to compensate oil majors) it has been difficult for western companies to devise a profitable operation under these constraints.
Despite these barriers, foreign companies have been investing in two areas in the industry in China:
- Wind Turbine Manufacturers. The two largest companies worldwide are already manufacturing in China. The Danish company Vestas, with a 23 per cent global market share, has been producing in China since 2005, with several factories in Tianjin. The Spanish group Gamesa, with a 15 per cent global market share, has invested EUR40m to achieve a 700MW yearly turbine production capacity, also in Tianjin - and China is already responsible for 15 per cent of worldwide sales. Other large players, such as GE, Suzlon and Nordex, are also manufacturing locally.
- Wind Energy Producers. Australian company Roaring 40s is currently involved in seven wind farms (under construction and operating), in Shandong and Jilin provinces. It operates under a very specific JV model with a Chinese SOE partner (three projects with one company, four projects with another), looking for smaller projects (50MW) and negotiating directly with local authorities, therefore avoiding the larger, centrally awarded projects where large Chinese companies control their turf. Recently, it has signed an agreement with Datang Jilin Power Generation, a large traditional energy producing SOE, to develop a 1000MW wind farm. Construction will begin in 2008, and will be one of the largest projects in the world.
Another company involved in seven projects, all in Inner Mongolia, is Honiton Energy Holdings, which also operates in 50MW incremental projects but for larger wind farms. The company is based in China but has foreign investors and was recently acquired by a Dubai Investment Bank and a Singapore operator, in a USD2 bn deal. Unlike Roaring 40s, Honiton approaches each project alone, without JVs with Chinese companies. An interesting landmark achieved, according to the company, was the signing of the first Power Purchasing Agreement by a foreign firm - 25 years in duration, the first 35,000 hours will be sold at RMB0.548kw/h and subsequently at existing market prices.
Barriers Are Real, But Investment Opportunities Exist
There are still important obstacles in the way of foreign investment with some large infrastructure/energy focused funds finding it nearly impossible to enter the market. Private equity funds have confirmed that they have been looking at some renewable energy projects, but could not make the numbers work, at least for energy production. In equipment manufacturing, the outlook seems brighter.
However, the cases presented above prove that China is currently a real market in renewables - both for power generation as well as for manufacturing equipment. Like in most sectors in the country, it's essential to be ingenious, flexible and persistent to overcome existing obstacles.
Showing posts with label wind energy. Show all posts
Showing posts with label wind energy. Show all posts
Tuesday, November 11, 2008
Wednesday, November 5, 2008
China and India on track for wind sector dominance
Report claims China could replace Germany as biggest generator of wind power as early as next year
BusinessGreen.com staff, BusinessGreen, 05 Nov 2008
The growing influence China and India wield over the global wind energy sector has been underlined after new research suggested both countries are fast closing the capacity gap on more established markets such as Germany and the US.
The study from the Global Wind Energy Council confirmed that at the end of 2007 Germany continued to hold the top spot with 22.3GW of installed capacity compared with 16.8GW in the US and 15.1GW in Spain.
However, India with 7.8GW and China with 5.9GW made up the top five and both reported rapid growth with India installing an extra 1.5GW of capacity and China taking the title of fastest-growing market, achieving 145 per cent growth over the course of the year.
The report, which was released late last week, predicted that with China now boasting the world's largest turbine manufacturing sector through companies such as Goldwind, Sinovel Wind and Dongfang, the country is on track to take Germany's title of largest wind energy generator as early as 2009.
It also claimed that the rapid expansion of the wind energy sector in emerging economies meant that wind could generate up to 12 per cent of the world's power by 2020 - saving 10 billion tonnes of carbon in the process - and represent almost a third of the global energy mix by 2050.
Meanwhile, reports have emerged this week that Indian turbine maker Suzlon Energy is to undertake a share issue to finance the acquisition of an extra 22 per cent stake in Germany's REpower Systems.
The company already holds a 66 per cent stake in REpower Systems, but according to India's Business Standard is committed to bolstering its stake and is in talks with a number of private equity firms about raising the required funds through a share sale.
BusinessGreen.com staff, BusinessGreen, 05 Nov 2008
The growing influence China and India wield over the global wind energy sector has been underlined after new research suggested both countries are fast closing the capacity gap on more established markets such as Germany and the US.
The study from the Global Wind Energy Council confirmed that at the end of 2007 Germany continued to hold the top spot with 22.3GW of installed capacity compared with 16.8GW in the US and 15.1GW in Spain.
However, India with 7.8GW and China with 5.9GW made up the top five and both reported rapid growth with India installing an extra 1.5GW of capacity and China taking the title of fastest-growing market, achieving 145 per cent growth over the course of the year.
The report, which was released late last week, predicted that with China now boasting the world's largest turbine manufacturing sector through companies such as Goldwind, Sinovel Wind and Dongfang, the country is on track to take Germany's title of largest wind energy generator as early as 2009.
It also claimed that the rapid expansion of the wind energy sector in emerging economies meant that wind could generate up to 12 per cent of the world's power by 2020 - saving 10 billion tonnes of carbon in the process - and represent almost a third of the global energy mix by 2050.
Meanwhile, reports have emerged this week that Indian turbine maker Suzlon Energy is to undertake a share issue to finance the acquisition of an extra 22 per cent stake in Germany's REpower Systems.
The company already holds a 66 per cent stake in REpower Systems, but according to India's Business Standard is committed to bolstering its stake and is in talks with a number of private equity firms about raising the required funds through a share sale.
Sunshine on China Wind Power Industry
China Wind Power Industry is still promising in the worldwide financial crisis.
Wind energy industry is rapidly growing in China, and 3.4GW wind power capacity was installed in 2007, and the accumulated installed wind power capacity reached 6GW by the end of 2007, and China became the No.5 biggest wind power producer in 2007. And China accounted for 15% of investment in the global wind power industry in 2007, and the attracted investment in China was 34 billion CNY in total.
According to China Wind Power Development Report 2008, the total installed wind power capacity in China will reach 10GW by the end of 2008, and 25GW by the end of 2010. And the most conservative estimated capacity is 80GW by the end of 2020, the business opportunity in China wind power industry is huge.
It is possible that China government will release more incentive policies to further push the development of wind power industry. And in the last two years, many new big players joined the wind power industry, and these manufacturers will begin the mass production in next several years. Then China's wind power industry will expand at incredible speed.
At present China wind power industry development also faces some problems: weak power grid, low wind electricity price, wind power equipment quality problem and lack of innovative technologies and talented engineers.
The weak power grid is the biggest bottleneck. In general the wind power rich regions are far from the power consumption regions, and the power grid in the wind power rich regions is not able to transfer the generated electricity in large scale to the quite far power consumption regions.
The low wind electricity price is harmful to the wind power industry development. At present the wind electricity price in China is 0.01 to 0.02 Euro lower than the price in other countries. And the wind electricity prices for different projects are different, it is not fair for the companies to compete.
The low wind electricity price forces the wind power investors to beat down the wind power equipment prices, it is hard to guarantee the wind power equipment quality and the wind power equipment manufacturers do not have enough fund for product and technology development.
Wind energy industry is rapidly growing in China, and 3.4GW wind power capacity was installed in 2007, and the accumulated installed wind power capacity reached 6GW by the end of 2007, and China became the No.5 biggest wind power producer in 2007. And China accounted for 15% of investment in the global wind power industry in 2007, and the attracted investment in China was 34 billion CNY in total.
According to China Wind Power Development Report 2008, the total installed wind power capacity in China will reach 10GW by the end of 2008, and 25GW by the end of 2010. And the most conservative estimated capacity is 80GW by the end of 2020, the business opportunity in China wind power industry is huge.
It is possible that China government will release more incentive policies to further push the development of wind power industry. And in the last two years, many new big players joined the wind power industry, and these manufacturers will begin the mass production in next several years. Then China's wind power industry will expand at incredible speed.
At present China wind power industry development also faces some problems: weak power grid, low wind electricity price, wind power equipment quality problem and lack of innovative technologies and talented engineers.
The weak power grid is the biggest bottleneck. In general the wind power rich regions are far from the power consumption regions, and the power grid in the wind power rich regions is not able to transfer the generated electricity in large scale to the quite far power consumption regions.
The low wind electricity price is harmful to the wind power industry development. At present the wind electricity price in China is 0.01 to 0.02 Euro lower than the price in other countries. And the wind electricity prices for different projects are different, it is not fair for the companies to compete.
The low wind electricity price forces the wind power investors to beat down the wind power equipment prices, it is hard to guarantee the wind power equipment quality and the wind power equipment manufacturers do not have enough fund for product and technology development.
Tuesday, October 21, 2008
Gansu province will have 1GW wind power capacity by the end of 2008
Gansu province is rich in wind energy, the wind energy reserve in Gansu province is 237 GW with 150GW in Jiuquan city.
The total installed wind power capacity in Gansu province will reach 1GW by the end of 2008.
The total installed wind power capacity in Gansu province will reach 1GW by the end of 2008.
The first wind power project in Hainan province will be completed by the end 2008
Huaneng Wenchang Wind Power project is on the track, 11 sets of wind turbines have been installed, and the first phase project will be completed by the end of 2008. The total capacity for the first phase Huaneng Wenchang Wind Power project is 49.5MW, and in total 33 sets of 1.5MW wind turbines will be installed, and the wind turbines are manufactured by Sinovel. The first phase project will be able to generate about 103 million KWH power per year.
Huaneng Wenchang Wind Power project is the first wind power project in Hainan province, and the total planned capacity is 120MW, and the total investment is 1.3 billion CNY.
Huaneng Wenchang Wind Power project is the first wind power project in Hainan province, and the total planned capacity is 120MW, and the total investment is 1.3 billion CNY.
Monday, October 20, 2008
Datang Daode Wind Power Plant Broke Ground at Alukerqin
2008 October 18, Datang Daode Wind Power Plant held the ground breaking ceremony at Alukerqin. Alukerqin is rich in the wind energy, and there are five ideal wind power plant locations, the planned five wind power plants cover 1,602 square kilometers in total in Alukerqin.
The first phase project of Daode wind power plant will install 58 sets of Vestas V60-850KW wind turbines, and the first phase project will be completed in one year. And the investment for the first phase project is 500 million CNY, and it will be able to generate 120 million KWH power each year and the power generation income will be 67 million CNY a year. And the investment will be paid off in ten and half years.
And Alukerqin government has further signed 1.5GW wind power development agreement with Datang.
The first phase project of Daode wind power plant will install 58 sets of Vestas V60-850KW wind turbines, and the first phase project will be completed in one year. And the investment for the first phase project is 500 million CNY, and it will be able to generate 120 million KWH power each year and the power generation income will be 67 million CNY a year. And the investment will be paid off in ten and half years.
And Alukerqin government has further signed 1.5GW wind power development agreement with Datang.
Saturday, October 18, 2008
Hebei Shangyi completed the biggest wind power plant in China
Recently the phase four wind power project of Guohua Shangyi Wind Power Plant was completed, and the phase four wind power project is 49.5MW. Then Guohua Hebei New Energy Company has completed their wind power plant in Shangyi, and the total installed capacity is 183MW, and became the current biggest wind power plant in China.
Guohua Shangyi Wind Power Plant covers about 100 suqare kilometers, and the total investment is about 1.75 billion CNY, and 122 sets of 1.5WM wind turbines are installed. Guohua Shangyi Wind Power Plant is able to generate 430 million KWH per year.
In order to push the development of wind energy Shangyi county government has signed 7.2GW wind power development agreement with 21 wind power investors, the total investment is 62 billion CNY. And the installed capacity in Shangyi will reach 400MW by the end of 2008, and Shangyi county has the ambitious plan to become the No.1 wind power generation county in China.
Guohua Shangyi Wind Power Plant covers about 100 suqare kilometers, and the total investment is about 1.75 billion CNY, and 122 sets of 1.5WM wind turbines are installed. Guohua Shangyi Wind Power Plant is able to generate 430 million KWH per year.
In order to push the development of wind energy Shangyi county government has signed 7.2GW wind power development agreement with 21 wind power investors, the total investment is 62 billion CNY. And the installed capacity in Shangyi will reach 400MW by the end of 2008, and Shangyi county has the ambitious plan to become the No.1 wind power generation county in China.
Friday, October 17, 2008
Shanghai builds 100MW offshore wind power plant
A 100MW offshore wind power demonstration project is under development in Shanghai now, the total investment is 2.36 billion CNY, and the total wind turbine capacity is 102MW, and it will be completed in early 2010, then it will generate 267 million KWH per year.
The investor for this wind power plant is Shanghai Eastsea Wind Power Company, and the wind turbines are supplied by Sinovel.
The investor for this wind power plant is Shanghai Eastsea Wind Power Company, and the wind turbines are supplied by Sinovel.
Inner Mongolia Bayanzhuoer will install 10GW wind power by 2020
Bayanzhuoer is rich in wind energy, the total wind energy reserve is 98GW, and the exploitable wind energy is 69GW, and the Bayanzhuoer government has ambitious wind power development plan.
According to the plan the installed wind turbine capacity will reach 3GW by 2010, and reach 6GW by 2015, and reach 10GW by 2020.
At present there are 17 approved wind power projects in Bayanzhuoer, and 10 investors are working on these projects.
According to the plan the installed wind turbine capacity will reach 3GW by 2010, and reach 6GW by 2015, and reach 10GW by 2020.
At present there are 17 approved wind power projects in Bayanzhuoer, and 10 investors are working on these projects.
China Cixi 49.5MW wind power plant was completed
October 16th 2008, the first phase project of Cixi wind power plant was completed and 33 sets of 1.5MW wind turbines were installed, the investment is 643 million CNY. Each wind turbine may generate 10,000 KWH per day on average, and the generated power can meet the power demand of a quarter residents in Cixi.
Cixi is rich in wind, in July 2006 Cixi Changjiang Wind Power Company was founded to develop the wind energy in Cixi.
Cixi is rich in wind, in July 2006 Cixi Changjiang Wind Power Company was founded to develop the wind energy in Cixi.
Thursday, October 16, 2008
Jiuquan will build 10GW solar power plant
2007 November China National Development and Reform Commission approved the Jiuquan 10GW wind power project, the total installed capacity will be 10.65GW, and the total investment will be 100 billion CNY.
2008 April China National Development and Reform Commission approved the development plan of Jiuquan wind power project.
Jiuquan is super rich in wind energy, its total exploitable wind power is 40GW.
The installed wind power capacity will reach 5.16GW by the end of 2010, and reach 12.71GW by the end of 2015. Then Jiuquan will become one key clean energy base in China.
2008 April China National Development and Reform Commission approved the development plan of Jiuquan wind power project.
Jiuquan is super rich in wind energy, its total exploitable wind power is 40GW.
The installed wind power capacity will reach 5.16GW by the end of 2010, and reach 12.71GW by the end of 2015. Then Jiuquan will become one key clean energy base in China.
Wednesday, October 15, 2008
China: Wind Power for 1.3B People
From: http://seekingalpha.com/article/99955-china-wind-power-for-1-3b-people
In a recent trip to China, I experienced the "China Speed" in developing their new mega cities all over the country. The magnitude is beyond my imagination. Anything in this country is "big". 1.3B population, yes it is a "B", and let me tell you this, the population of children under age 10 is the same as the whole population of Canada: 40 Million. The China's biggest city Shanghai is twice the size of New York. The high speed train of Shanghai is two times faster than US, that is half the speed of an airplane.
Then you will ask, where does China get all the energy it needs? The answer is simple, China does not have enough energy to sustain such a magnitude of growth, and it imports crude from every single corner of the earth. And it is planning big for its next generation of energy: Wind power.
According to the Global Wind Energy Council, China's installed wind energy capacity could reach 122GW by 2020. China's exploitable wind resource is estimated around 1000GW. In Inner Mongolia of Northern China, massive wind projects have been deployed over the last couple of years, the estimated capacity has reached over 1GW. In West China, provinces such as Gansu, and Qinghai, are also developing their own wind power projects to meet local energy demand. The central government has chosen wind power as an important alternative energy to combat green house emission and secure energy supply.
The wind energy booming in China has attracted many worldwide wind turbine manufacturers invest in China, such as GE (GE), Gamesa (GCTAF.PK) and Vestas (VWDRY.PK). There are also many domestic manufacturers including A Power Energy Generation (APWR), Nantong CASC, REpower North, Nordex, Hunan Hara XEMC Windpower. Among these companies, only GE, Vestas, and APWR are listed in North America, and recently APWR signed 50 of 2.7MW wind turbine contract, and has total annual production capacity of 1.1GW by 2009.
In a recent trip to China, I experienced the "China Speed" in developing their new mega cities all over the country. The magnitude is beyond my imagination. Anything in this country is "big". 1.3B population, yes it is a "B", and let me tell you this, the population of children under age 10 is the same as the whole population of Canada: 40 Million. The China's biggest city Shanghai is twice the size of New York. The high speed train of Shanghai is two times faster than US, that is half the speed of an airplane.
Then you will ask, where does China get all the energy it needs? The answer is simple, China does not have enough energy to sustain such a magnitude of growth, and it imports crude from every single corner of the earth. And it is planning big for its next generation of energy: Wind power.
According to the Global Wind Energy Council, China's installed wind energy capacity could reach 122GW by 2020. China's exploitable wind resource is estimated around 1000GW. In Inner Mongolia of Northern China, massive wind projects have been deployed over the last couple of years, the estimated capacity has reached over 1GW. In West China, provinces such as Gansu, and Qinghai, are also developing their own wind power projects to meet local energy demand. The central government has chosen wind power as an important alternative energy to combat green house emission and secure energy supply.
The wind energy booming in China has attracted many worldwide wind turbine manufacturers invest in China, such as GE (GE), Gamesa (GCTAF.PK) and Vestas (VWDRY.PK). There are also many domestic manufacturers including A Power Energy Generation (APWR), Nantong CASC, REpower North, Nordex, Hunan Hara XEMC Windpower. Among these companies, only GE, Vestas, and APWR are listed in North America, and recently APWR signed 50 of 2.7MW wind turbine contract, and has total annual production capacity of 1.1GW by 2009.
Monday, October 13, 2008
Jiamusi plays the wind to money game
Jiamusi has abundant wind energy, and the average wind energy density is over 200 watts per square meters. At present 17 ideal wind power plant locations are identified, and by the end of this year the total installed capacity will reach 368MW, and the target is 1000MW.
49.5MW Wind Power Plant will be built in Ziyuan County, Guangxi Province
Ziyuan County is rich in the wind energy, and a 49.5MW wind power plant will be built on the Jinzi mountain.
China Power Investment Group will invest about 600,000,000 RMB in the wind power project, and install 33 sets of 1.5MW wind turbines. China Power Investment Group plans to start the construction in this year, and complete the project in 12 months.
China Power Investment Group will invest about 600,000,000 RMB in the wind power project, and install 33 sets of 1.5MW wind turbines. China Power Investment Group plans to start the construction in this year, and complete the project in 12 months.
Friday, October 10, 2008
China Government Subsidizes R&D On Wind Power
August 25, 2008
The Chinese Ministry of Finance has promulgated its "Interim Procedures For Management Of Wind Power Generation Equipment Industrialization Special Funds".
This says that for the first 50 wind power units from manufacturers that meet the relevant criteria, subsidies of CNY600 per kilowatt will be granted by Ministry of Finance. This is said to be equivalent to 10% of the cost.
According to an official of Chinese Wind Energy Association t is of great importance to promote the domestic manufacturing of wind power equipment, particularly core technologies.
According to the Interim Procedures, the special funds should be used for new product research and development of wind power equipment; the beneficiaries should be Chinese-funded or Chinese holding enterprises focusing on the manufacture of wind power equipment including finished machines, vanes, gear cases, generators, convertors, and bearings.
Manufacturers that intend to apply for the subsidy should meet six criteria including independent intellectual property rights and equipment brands.
The official from CWEA also said the funds are mainly aimed at megawatt-class wind power units for these are now the mainstream in the international market. Yet there are only a few independent megawatt-class wind power unit manufacturers in China. The Interim Procedures also mention bearings and convertors — areas in which China's wind power industry is weak and mainly depends on imported equipment.
The Chinese Ministry of Finance has promulgated its "Interim Procedures For Management Of Wind Power Generation Equipment Industrialization Special Funds".
This says that for the first 50 wind power units from manufacturers that meet the relevant criteria, subsidies of CNY600 per kilowatt will be granted by Ministry of Finance. This is said to be equivalent to 10% of the cost.
According to an official of Chinese Wind Energy Association t is of great importance to promote the domestic manufacturing of wind power equipment, particularly core technologies.
According to the Interim Procedures, the special funds should be used for new product research and development of wind power equipment; the beneficiaries should be Chinese-funded or Chinese holding enterprises focusing on the manufacture of wind power equipment including finished machines, vanes, gear cases, generators, convertors, and bearings.
Manufacturers that intend to apply for the subsidy should meet six criteria including independent intellectual property rights and equipment brands.
The official from CWEA also said the funds are mainly aimed at megawatt-class wind power units for these are now the mainstream in the international market. Yet there are only a few independent megawatt-class wind power unit manufacturers in China. The Interim Procedures also mention bearings and convertors — areas in which China's wind power industry is weak and mainly depends on imported equipment.
A-Power Contracts For Wind Turbines With China National Automation Control System
October 10, 2008
Shenyang-based A-Power Energy Generation Systems has signed its second sales contract with China National Automation Control System Corporation for the sale of 50 2.7 MW wind turbines.
This is in addition to the previously announced contract with CACS for five 2.7MW units. These units are expected to be delivered by July, 2009.
These 2.7MW wind turbines will be produced at A-Power's new wind turbine production facility in Shenyang, China with components the company has secured from Fuhrlander AG and other European wind power component suppliers, which will begin arriving in November. This facility consists of two production lines with a designed annual capacity of 300 units of 2.7MW wind turbines and 420 units of 750kW wind turbines, totaling over 1.1GW in annual output.
CACS, a subsidiary of China National Machinery & Equipment Group, has been a leading provider of power generation solutions to both China and the international markets since 1981. A-Power will supply wind turbines to CACS' wind farm projects in Gansu province and the Inner Mongolia Autonomous Region.
Shenyang-based A-Power Energy Generation Systems has signed its second sales contract with China National Automation Control System Corporation for the sale of 50 2.7 MW wind turbines.
This is in addition to the previously announced contract with CACS for five 2.7MW units. These units are expected to be delivered by July, 2009.
These 2.7MW wind turbines will be produced at A-Power's new wind turbine production facility in Shenyang, China with components the company has secured from Fuhrlander AG and other European wind power component suppliers, which will begin arriving in November. This facility consists of two production lines with a designed annual capacity of 300 units of 2.7MW wind turbines and 420 units of 750kW wind turbines, totaling over 1.1GW in annual output.
CACS, a subsidiary of China National Machinery & Equipment Group, has been a leading provider of power generation solutions to both China and the international markets since 1981. A-Power will supply wind turbines to CACS' wind farm projects in Gansu province and the Inner Mongolia Autonomous Region.
Thursday, October 9, 2008
China to Subsidize Wind Turbines
26 August 2008
by Justin Moresco
The Chinese government said Friday it will subsidize wind power equipment makers as the country continues its drive to generate 15 percent of its energy needs from renewable sources by 2020.
"This is quite significant," said Caitlin Pollock, Asia wind energy analyst for Emerging Energy Research, based in Cambridge, Massachusetts. "It will spur further growth."
The policy marks the first Chinese subsidy exclusively targeting wind power and highlights the Asian country's increasing interest in wind as a major source of energy. The government has set an official target of 30 gigawatts of installed wind capacity by 2020.
Last year China had a total of 5.9 gigawatts of installed capacity, according to Emerging Energy Research. The research group expects the country will nearly double that figure this year to 11.1 gigawatts.
But the subsidy also continues China's overarching policy of growing domestic manufacturing in parallel with overall renewable energy production. China wants to be greener, and it wants the transition to be led by local companies.
That's why only Chinese majority-owned turbine manufactures that source blades and other components from majority locally owned suppliers will qualify for the subsidy. And the subsidized amount--$88 per kilowatt for the first 50 units generating 1.5 megawatts or more--can only be used for research and development purposes.
Although there are more than 40 wind turbine vendors in China today, most have opted to license technology from foreign companies. The policy is intended to reverse that trend, Pollock said.
And in the long run, the subsidy should help make Chinese wind companies more competitive with their foreign rivals, such as GE Energy of the U.S. and Danish Vestas Wind Systems.
by Justin Moresco
The Chinese government said Friday it will subsidize wind power equipment makers as the country continues its drive to generate 15 percent of its energy needs from renewable sources by 2020.
"This is quite significant," said Caitlin Pollock, Asia wind energy analyst for Emerging Energy Research, based in Cambridge, Massachusetts. "It will spur further growth."
The policy marks the first Chinese subsidy exclusively targeting wind power and highlights the Asian country's increasing interest in wind as a major source of energy. The government has set an official target of 30 gigawatts of installed wind capacity by 2020.
Last year China had a total of 5.9 gigawatts of installed capacity, according to Emerging Energy Research. The research group expects the country will nearly double that figure this year to 11.1 gigawatts.
But the subsidy also continues China's overarching policy of growing domestic manufacturing in parallel with overall renewable energy production. China wants to be greener, and it wants the transition to be led by local companies.
That's why only Chinese majority-owned turbine manufactures that source blades and other components from majority locally owned suppliers will qualify for the subsidy. And the subsidized amount--$88 per kilowatt for the first 50 units generating 1.5 megawatts or more--can only be used for research and development purposes.
Although there are more than 40 wind turbine vendors in China today, most have opted to license technology from foreign companies. The policy is intended to reverse that trend, Pollock said.
And in the long run, the subsidy should help make Chinese wind companies more competitive with their foreign rivals, such as GE Energy of the U.S. and Danish Vestas Wind Systems.
Thursday, June 21, 2007
Renewable Energy Investments Soar
(AP) PARIS Renewable energy has moved out of the fringe and into the mainstream, with investors worldwide pouring $71 billion of new capital into the sector in 2006, up 43 percent from the previous year, and more is expected, a U.N. report said Wednesday.
Fears about global warming, frustration over high oil prices and growing backing from governments have lured more investment money to renewable energy sources like wind, solar power and biofuels, the U.N. Environment Program said. About a fifth of 2006 investment was in the developing world.
Today renewable energy accounts for only 2 percent of the electricity around the world, however, the report said. Renewable energy makes up 18 percent of the world's investment in generating power.
The trend report analyzed venture capital, the stock market and acquisitions, studying how investment money on renewable energy is being spent around the world. Though high oil prices are helping drive interest in renewable technologies, the field is growing more independent of fossil fuel prices."
One of the new and fundamental messages of this report is that renewable energies are no longer subject to the vagaries of rising and falling oil prices," UNEP Executive Director Achim Steiner said. "They are becoming generating systems of choice for increasing numbers of power companies, communities and countries irrespective of the costs of fossil fuels."
After $71 billion invested last year, the report forecast $85 billion in new capital pouring into the sector in 2007.
Investment through public markets more than doubled in 2006 to reach $10.3 billion, it said. The biggest growth has been in venture capital and private equity investments, which hit $7.1 billion in 2006, more than twice as much as the previous year.
Developing countries are getting deeper into the renewable energy business, the report found. Investment in the developing world made up 21 percent of the total last year.
Nine percent of worldwide investment took place in China, where large reliance on coal is a world environmental concern and where the lack of oil in its territory is helping motivate efforts to find other energy sources. India is slightly behind China, while Latin America amounted to 5 percent of investment. Sub-Saharan Africa lags, but there is nonetheless interest there.
"The growth in the number of countries who are talking to us about renewables ?it's just unbelievable how that's kind of ballooned in the last 12 to 18 months," said Nick Gardiner, the director of energy at Fortis Bank and a member of the advisory board of UNEP's Sustainable Energy Finance Initiative.
"There's a lot of liquidity around, there's a lot greater understanding of projects now ... renewables is very much considered a mainstream activity, so investors are interested and looking."
Fears about global warming, frustration over high oil prices and growing backing from governments have lured more investment money to renewable energy sources like wind, solar power and biofuels, the U.N. Environment Program said. About a fifth of 2006 investment was in the developing world.
Today renewable energy accounts for only 2 percent of the electricity around the world, however, the report said. Renewable energy makes up 18 percent of the world's investment in generating power.
The trend report analyzed venture capital, the stock market and acquisitions, studying how investment money on renewable energy is being spent around the world. Though high oil prices are helping drive interest in renewable technologies, the field is growing more independent of fossil fuel prices."
One of the new and fundamental messages of this report is that renewable energies are no longer subject to the vagaries of rising and falling oil prices," UNEP Executive Director Achim Steiner said. "They are becoming generating systems of choice for increasing numbers of power companies, communities and countries irrespective of the costs of fossil fuels."
After $71 billion invested last year, the report forecast $85 billion in new capital pouring into the sector in 2007.
Investment through public markets more than doubled in 2006 to reach $10.3 billion, it said. The biggest growth has been in venture capital and private equity investments, which hit $7.1 billion in 2006, more than twice as much as the previous year.
Developing countries are getting deeper into the renewable energy business, the report found. Investment in the developing world made up 21 percent of the total last year.
Nine percent of worldwide investment took place in China, where large reliance on coal is a world environmental concern and where the lack of oil in its territory is helping motivate efforts to find other energy sources. India is slightly behind China, while Latin America amounted to 5 percent of investment. Sub-Saharan Africa lags, but there is nonetheless interest there.
"The growth in the number of countries who are talking to us about renewables ?it's just unbelievable how that's kind of ballooned in the last 12 to 18 months," said Nick Gardiner, the director of energy at Fortis Bank and a member of the advisory board of UNEP's Sustainable Energy Finance Initiative.
"There's a lot of liquidity around, there's a lot greater understanding of projects now ... renewables is very much considered a mainstream activity, so investors are interested and looking."
Wednesday, June 6, 2007
Solar Energy Prospects
The scientific development and utilization practice on solar energy in the 20th century laid a sound foundation for large-scale utilization of solar energy in the 21st century. Recently, it is estimated by some famous analysis and research institutes, multinational companies, solar expertise and governments that solar energy is to occupy 50% of worldwide energy structure including wind energy and biomass energy around the middle of the 21st century (2050). Until that time, solar energy is to be the foundation energy for the worldwide sustainable development. Regarding this estimate, viewpoints are varying; some supports and some are suspicious. In order to scientifically treat this problem, we can analyze from three aspects including the worldwide fossil fuels production and consumption, environment protection and technology advance so as that to reach considerably objective results.
The worldwide consumption of fossil fuels is expanding remarkably while the storage of resources is limited. Right now, the worldwide storage of fossil fuels is about 130 billion tons, while the annual worldwide consumption is about 3.5 billion of petroleum and Asia is consumed incrementally. If this tendency remains unchanged, in the coming 25 years, the average annual consumption is accounting for 5 billion tons, which can exhaust all of the storage. Even if there are new oil fields to be found in this period, experts estimate that the world storage of petroleum will not exceed 200 billion tons, which will be used up within 30 to 50 years.
What can replace the petroleum in the future? After the petroleum crisis happened in the 1970s, focus has been concentrated on the gasification and liquefaction of coal. But 30 years passing, nothing remarkable results have been achieved. Complex technologies and huge investment limits the extensive utilization of gasified coal and liquefied coal.
Social-economic development should be supported by energy. But it is completely impractical to compensate the insufficient supply of petroleum by increasing the consumption of coal, which is an approach for energy development paid by the environment. According to estimates, direct burning of 1 tons coal may produce 3 to 11 tons of powder, 60kg of SO2, 3 to 9 kg of NaO2 and large quantity of CO2. In China, directly discharging fuel dust in 1995 was accounted for 17.44 million tons, and SO2 for 23.7 million tons, among which discharging of coal occupied 70% and 85%. At present, carbon discharged from coal can be amounted for 1 billion tons annually. The excessive exploitation and utilization of coal has been the main reason to pose the deterioration of worldwide environment. According to the World Environment and Development Conference hold by the UN in 1992, the consumption of coal should not be increased and should be limited and decreased gradually.
Moreover, analysis on PV power system can review the market penetration of solar energy in the next century.
If we calculated in accordance with the constant price in the 1970s, the price for solar cells has been declined for 10 times in recent 30 years. Experts estimate that PV power generation is competitive than conventional power generation after 2030 along with the mass production and technology advance. In 2050, the price of solar cells is to be 10 times lower than the present level, that is 4.5 Yuan per watt, and the electricity price is 0.2 Yuan per kWh. After the development for 50 years, PV power can produce 50% of the worldwide electricity.
The above-mentioned analysis shows that the worldwide energy structure will be variable in fundamentality in the 21st century. The petroleum, which is leading in the energy structure, will be gradually decreased until used up. The coal will be limited to use. But in view of the requirement in developing countries, the utilization of coal is likely to be rising up before 2030 and will be gradually decreased after that. Since the nuclear safety and treatment of nuclear waste technologies cannot be tackled and no any breakthrough comes out, the utilization of nuclear power will be gradually closed to operation in the industrial country in the coming 50 years and new nuclear plant will be built in developing countries. The total amount will not be rising but declining on the contrary. The solar energy and other renewable energy will replace the petroleum and coal to be the majority of worldwide energy.
Estimates on the percentage of which each primary energy occupies in the worldwide energy structure in 2050, show that petroleum occupy 0, natural gas 13%, coal 20%, nuclear energy 10%, hydropower 5%, solar energy including wind energy and biomass energy occupies 50% and others 2%.
The 21st century must be a century of widespread use of solar energy, which is to be the foregone conclusion on social development and cannot be transferred by any people's volition.
The worldwide consumption of fossil fuels is expanding remarkably while the storage of resources is limited. Right now, the worldwide storage of fossil fuels is about 130 billion tons, while the annual worldwide consumption is about 3.5 billion of petroleum and Asia is consumed incrementally. If this tendency remains unchanged, in the coming 25 years, the average annual consumption is accounting for 5 billion tons, which can exhaust all of the storage. Even if there are new oil fields to be found in this period, experts estimate that the world storage of petroleum will not exceed 200 billion tons, which will be used up within 30 to 50 years.
What can replace the petroleum in the future? After the petroleum crisis happened in the 1970s, focus has been concentrated on the gasification and liquefaction of coal. But 30 years passing, nothing remarkable results have been achieved. Complex technologies and huge investment limits the extensive utilization of gasified coal and liquefied coal.
Social-economic development should be supported by energy. But it is completely impractical to compensate the insufficient supply of petroleum by increasing the consumption of coal, which is an approach for energy development paid by the environment. According to estimates, direct burning of 1 tons coal may produce 3 to 11 tons of powder, 60kg of SO2, 3 to 9 kg of NaO2 and large quantity of CO2. In China, directly discharging fuel dust in 1995 was accounted for 17.44 million tons, and SO2 for 23.7 million tons, among which discharging of coal occupied 70% and 85%. At present, carbon discharged from coal can be amounted for 1 billion tons annually. The excessive exploitation and utilization of coal has been the main reason to pose the deterioration of worldwide environment. According to the World Environment and Development Conference hold by the UN in 1992, the consumption of coal should not be increased and should be limited and decreased gradually.
Moreover, analysis on PV power system can review the market penetration of solar energy in the next century.
If we calculated in accordance with the constant price in the 1970s, the price for solar cells has been declined for 10 times in recent 30 years. Experts estimate that PV power generation is competitive than conventional power generation after 2030 along with the mass production and technology advance. In 2050, the price of solar cells is to be 10 times lower than the present level, that is 4.5 Yuan per watt, and the electricity price is 0.2 Yuan per kWh. After the development for 50 years, PV power can produce 50% of the worldwide electricity.
The above-mentioned analysis shows that the worldwide energy structure will be variable in fundamentality in the 21st century. The petroleum, which is leading in the energy structure, will be gradually decreased until used up. The coal will be limited to use. But in view of the requirement in developing countries, the utilization of coal is likely to be rising up before 2030 and will be gradually decreased after that. Since the nuclear safety and treatment of nuclear waste technologies cannot be tackled and no any breakthrough comes out, the utilization of nuclear power will be gradually closed to operation in the industrial country in the coming 50 years and new nuclear plant will be built in developing countries. The total amount will not be rising but declining on the contrary. The solar energy and other renewable energy will replace the petroleum and coal to be the majority of worldwide energy.
Estimates on the percentage of which each primary energy occupies in the worldwide energy structure in 2050, show that petroleum occupy 0, natural gas 13%, coal 20%, nuclear energy 10%, hydropower 5%, solar energy including wind energy and biomass energy occupies 50% and others 2%.
The 21st century must be a century of widespread use of solar energy, which is to be the foregone conclusion on social development and cannot be transferred by any people's volition.
Subscribe to:
Posts (Atom)
