China To Lead Global Wind Energy Development
This is good news in the wind for environmental campaigners. Wind capacity has increased and the cost per unit of energy produced by wind power would decline, which is largely credited to efforts by China.
World Wind Energy Association predicts that by 2020 the total installed capacity of wind power is now estimated at 1st 5 million megawatts worldwide, representing 20% of the total electricity consumption. This represents a significant jump in the role of wind in the next ten years, when he was only 1. 5% of the total electricity consumption in 2008.
Where the news of environmental degradation is a concern in China is that China is going to lead the revolution in global wind energy market, the United Kingdom or the United States, which have long been his strongest supporter.
It is ironic that in the west, the green movement’s supporters protested against the very infrastructure needed to pursue sustainable energy practices. There is a “not in my backyard” mentality. This paradox is not seen in China. China will become not only a world leader in wind power, but can be a leading provider of rapid growth in emerging Asian economies such as Vietnam, Thailand and Indonesia, which itself has limited the development of technology of wind power.
The commitment of the Chinese government
The Chinese government regards the development of wind energy as a priority. At the end of 2008, China surpassed India has the largest installed capacity of wind power in Asia with a total of 12. 2GW of capacity, against India 9th 6GW.
The Chinese wind power industry equipment manufacturing has attracted investment from many companies. With market demand for equipment for wind energy should reach 32 billion U.S. dollars in 2010 to invest in China is important for many foreign companies wishing to exploit the large and rapid accumulation of wind energy in China.
In addition, companies turbines abroad have invested heavily in China, following an earlier government provision requiring at least 70 percent of components purchased locally for use in wind energy projects in China.
To meet the demands of the growing market with domestic production and technology of wind turbines and components also increase. With the accelerated development of production, China is preparing to meet both domestic demand and prepare to deliver parts on the international market.
Major trends in the sector of wind energy in China
1. Shortage of supply of wind turbines and components is predicted
The demand for wind turbines and their components in many countries is increasing. Together, the United States, European Union and China, targeting to have installed capacity of about 400 to 500 gigawatts in 2020.
Only a small number of specialist suppliers to produce key components for wind turbines of greater capacity, however, and demand can overwhelm some suppliers, particularly those specializing in gearboxes and bearings. In addition, other industries also use similar components, wind power for their equipment and machinery.
As a new technology, the wind models are still developing. The pieces are mostly custom-made and not exchangeable, suppliers compensation difficult to find. In addition, the technology necessary to enter the wind industry is an obstacle to new entrants.
Currently, wind turbines most Chinese and components for the higher MW products are licensed or developed jointly with foreign players, while local producers are not the sovereign’s ability to build turbines to power higher. With fewer players deliver higher MW products are the bottlenecks that affect the shortage of supply of equipment associated wind, especially with the Government’s emphasis on wind power top.
Volatility of commodity prices, especially steel, copper and coal, is a critical factor in parts of wind turbines. Steel is used in tower, transmissions and rotors, copper used in generators and coal in the rotor blades. Any price volatility can lead to bottlenecks in the supply chain.
2nd More partnerships between industry players wind
For non-residents to facilitate their entry into the market and achieve a coherent goods and services, partnerships in the form of reciprocal agreements, joint ventures and acquisitions among market players, such as promoters of wind energy and operators, manufacturers of wind turbines and component manufacturers, wind energy, will continue. Through these efforts, local actors in turn, will have its own technology.
Examples joint effort with the Shanghai Electric Aerodyn German, and Zhejiang partnership with Windey Garrad Hassan and Partners Ltd (GH) from the United Kingdom.
3rd Local technical progress
Due to regulations in China aimed at promoting locally manufactured products, non-residents who want to enter China must work with local Chinese companies. This, in turn, promotes technology transfer between Chinese enterprises and strengthen local expertise.
An example of this is the joint program with Austria Sinovel Windtec. Sinovel develops a three megawatts, double feedback, variable speed and constant power systems frequency of wind, the first Chinese high-tech offshore wind systems, which will be installed in the first wind farm, Shanghai Donghai Bridge Park wind.
4th China as a major center of the supply chain in the wind industry
If current trends continue, China will be a key supplier of energy market wind, especially in large wind turbine components and services. Strong local demand, the strategic position of China to supply Asian markets with parts and equipment, and the development of local research and skill development can encourage a future role in global hotspot services wind and equipment.
Increasing ability of China to produce cheaper equipment, wind energy can also draw on Asia South-wind energy use, especially for small and medium projects. While the Chinese government actively encourages the production of wind turbines with a capacity of more than two megawatts, Chinese suppliers are still catching up to technology. For now, their strength will continue to be low to medium scale wind energy, which is a good thing for the markets of South Asia.
5th Suppliers of wind power in China Go Global
The interest of Chinese suppliers “for European companies in May is of strategic geographic importance in the long term.
Goldwin Chinese leader has acquired most of the German Vensy to focus on developing technology for direct drive wind turbine. After the acquisition of Vensy bought gold Wind subsidiary also produces converters and systems for variable helix Vensy Vensy by Germany.
For Goldwin, it provides a local base in Europe with benefits to both Germany and China. She has also taken a series of cons-border talent with experience in domestic and international companies Shenzen
Huawei, Motorola, General Electric, the industrial bearings SKF, ABB and Siemens.
China has been described as the world’s factory. In wind energy, global environment would be the benefactors of their successful production.
About the authors
Khoo Kim is head of intelligence in the Global Intelligence Alliance (GIA), while Diah Saraswati is an analyst with Global Intelligence Alliance, Singapore.
About Global Intelligence Alliance
Global Intelligence Alliance (GIA) www. Global Intelligence. com is a strategic intelligence on the market and the Advisory Group. GIA was established in 1995 when a team of specialists, market research, management consultants, came to industry analysts and technology to build a powerful suite of customized solutions ranging from outsourced services and software market, the strategic analysis and advice.
About this article
This article is based on extracts of the book Global Intelligence Alliance white right: The Chinese market for wind energy. The White Paper can be downloaded at www. Global Intelligence. com / Insight-analysis / whitepapers /
Category: Wind Energy
