China -wind power development

 China - wind power  development

China and South Korea - off shore wind power

China and South Korea have actively pursuing  the introduction off-shore wind energy generation. Both countries appear to have strong desire to encourage their own domestic manufactures to gain expertise in off-shore wind power foster for the business as high growth export industry . The countries may further strengthen their focus on wind power if concern over nuclear power continuous to grow due to the accident at Fakushima nuclear power station.

According to report released by Japanese wind power association (JWPA)  china has introduced at end of  2010 a cumulative total installed capacity of 42 GW on shore and offshore wind power combined surpassing its initial 30 GW- target capacity far ahead of the intended target year 2o2o. Most facilities has thus far been installed in the inland area of country, and there is an increasing need of  off shore wind power in order to supply electricity to coastal areas with high power demand.

It has been confirmed that china has a total installed capacity of slightly more than 100 MW to date and several projects underway for additional 200-300 MW. A draft of country’s new energy industry development plan  currently under review aim  to achieve  by 2020 an installed capacity of 30 GW with off shore wind power alone and enormous 150 GW with on shore and offshore wind combined.

Mean while South Korea which had made a relatively late start in wind power industry recently developed  a mechanism to promote off shore wind power through concerted effects across its public and private sections. The country   has  set up a target of installing 2500 MW off shore capacity by 2019 to become  worlds third largest wind power producer. South Korea a keen interest promoting floating off shore wind turbines, as indicated by its move to make proposal for international standards to international Electro technical commission (IEC). There are high expectations in the country for off shore wind power  as promising  future export industry.

As  it standards Japan has so far been felt behind China and Korea in wind power development. JWPA states in its report  “ Japan as a country surrounded by sea has significantly high wind power potential than china and Korea. To make most of this resource, we urge Japan government to positively consider  the introduction of off shore wind power with same or greater level of determination than these two countries.”

China and wind power developments

China is on track to install as much as 18 Gws  wind power capacity this year as world’s second biggest economy continues to diversify its energy resources, according to official at Chinese Renewable Energy industry association. If all goes well, the country will end 2011 with total capacity of 58GW of installed capacity moving ahead with plans to install as much as 150-230 Gws over next decade . China already has world’s largest installed wind power capacity.

The new capacity will be state built and financed like much else in china . According to observes , the five national power companies China power investment group, Guardian Datant,  Huanent  and Huadian will build the largest wind farms. So far the largest of these is Datants 400 MW farm in the Jialing province.

Overall country will invest 5000 RMB per KW ( U.S. dollars 764 or about 764 ,000 dollars per MW of wind turbine capacity. Ma Lingjuan trade  body secretary  general says  the price  is declining fast , with some turbines selling for as little as 4000 RMB( 611,OOO U.S. dollars ) per MW. State banks will fund the developers behind projects  but some international banks  and world bank will also will also financing she adds.

The bulk of new capacity will be on shore with just 100 MW earn marked for offshore capacity in Guangzhou province in eastern china .
North eastern provinces of inner Mongolia Hube i and Gansu will likely host most of the new projects, Deeping their geological lead in industry. The three provinces account for 80 per cent installed capacity with inner Mongolia taking up as much as one third.

When asked why China putting so much money behind wind, Lingjuan says the technology is cheaper  to develop  than solar or bio-mass where collection of raw material is very challenging in China .

“ Wind power is most economical feasible technology that can develop at a large scale “ she adds.

Wind is likely to lead China renewable agenda. The country hopes to derive 15 percent of its power from clean energy by 2020.

Under scoring just how the lucrative the industry has become , largest wind power developer Long Yuan power group last month announced that its profits had more than doubled over last year to 2 billion Yuan ( U.S. Dollars 305 million from just under 900 million Yuan( U.S. dollars 137 million ) the year before. The company said its hopes to install 2 GW of capacity this year, bringing the total it operates to 9 GW.

In addition the cash firm expanding abroad making no secret of its plans to “pro actively “ expand to South Africa, North America and eastern Europe.

Grid and pricing challenges

But wind power  development in China is not without difficulties. The industry faces several growth challenges including a still limited inter connection capacity and escalating price war between manufacturers.

Ling Juan  says  around 10 % of last year installed capacity cannot be connected to net work due  to grid barriers. While government has pledged to resolve matter, Ma says more innovation and investment needed to ensure these and upcoming wind farms can be successfully plugged to domestic power net work.

According to observers, the state has promised to invest 500 billion RMB  (U.S. Dollars 76 billion) to expand the country power net work to accommodate the growing wind industry’s requirements.

Linda Chen director strategy and business development at Spanish wind power firm Gamesa,  says pricing competition is also pierce, making it hard for foreign turbine manufacturers to penetrate the Chinese market.

Apart from transmission challenges, there are very competitive pricing issues. The domestic manufacturers can sell at very low prices”  Chen says adding that she hopes new market regulation will even the playing field.

That has not stopped Gamesa from growing China, however taking on other leading turbine manufacturers such as Si-novel  and Gold wind. Si novel is currently in second place in terms of market share in the global wind turbine manufacturing space with Gold wind ranking number four. Gamesa is currently the sixth largest  wind turbine manufacturer.

Gamesa has invested 90 million ( 128 million U.S. dollars ) to build five manufacturing plants in country since 2000. It has to open a sixth one -which will make nacelles - by end of the year.

Overall Gamesa has 2200 MW  installed turbine capacity and over  2,7000 MW of installed capacity in its own wind farms.

According to Ling Juan, turbine manufacturers are also set to pour millions to improve this anti -disaster technology , in light of Japan’s  recent earthquake and tsunami. Though Japan wind industry reportedly survived the tragedy un scattered-due to its robust anti quake design-China is said to lag behind Japan in this regard, observers say.

Ling Juan says manufacturers are keenly aware of China’ s  vulnerability - to earth quakes and tsunamis and acknowledges design “ need improvement” especially for off shore wind facility.

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