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When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
When butterfly meets_wind_fudan university_rubicon team
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When butterfly meets_wind_fudan university_rubicon team

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  • 1. When Butterfly Meets WindStrategy Proposal for SK’s Entrance into China’s Wind MarketBy LI Guang, ZHAO Tian, ZHU ShengSchool of Management,Fudan UniversityRubicon Team
  • 2. OutlineBackgroundProfitabilityMarket SizeIndustry AnalysisStrategy Goal, Goal Decomposition andStrategy DirectionsExternalEnvironment1 Market Analysis&SWOT2 Proposed Strategies3Policy OverviewSWOT AnalysisRoles Sites & ModesManufacturer InvestorS1: Positioning inValue ChainCase Study 1:AES’s successin CDM ProjectsCase Study2:How SK enteredPetro IndustryIn China2nd Tier Region Off-grid PowerS2: Combination ofCarbon-free Industryand Off-grid PowerSK Vision:Sharing Happiness WhenButterfly Meets WindConclusion: Windenergy industry is verypromising in China.Conclusion: SK Energycould join hands withplayers in value chain toseize great opportunities inthe vast and growingmarket.
  • 3. OutlineProfitabilityMarket SizeIndustry AnalysisStrategy Goal, Goal Decomposition andStrategy DirectionsExternalEnvironment1 Market Analysis&SWOT2 Proposed Strategies3SWOT AnalysisRoles Sites & ModesManufacturer InvestorS1: Positioning inValue ChainCase Study 1:AES’s successin CDM ProjectsCase Study2:How SK enterPetro IndustryIn China2nd Tier Region Off-grid PowerS2: Combination ofCarbon-free Industryand Off-grid PowerSK Vision:Sharing Happiness WhenButterfly Meets WindConclusion: SK Energycould join hands withplayers in value chain toseize great opportunities inthe vast and growingmarket.BackgroundChina is in need ofrenewable energies in future.Wind energy developmentis booming around the world.Wind energy is a promisingindustry in China.Policy OverviewPolitical will fuels windenergy industry in China
  • 4. With modern industrializationaround the world energy crisis isbecoming more and more manifest.The scarcity of traditional energiesand negative impacts on theenvironment is becoming a globalconcern.Proposed StrategyMarket Analysis and SWOTExternal EnvironmentTraditional EnergyIncreasing Demand for Energy in ChinaElectricity’s Demand Growth, Supply Growth (Net CapacityIncrease) and Generation Hours under Optimistic Expectation4860525054605411522150155069519453590.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%2002 2003 2004 2005 2006 2007 2008 2009E 2010E44004600480050005200540056005800Demand Grow th Supply Grow th Pow er Generation HoursSource: China Galaxy Securities, 2008 Energy InsightBackgroundNegative impacts of traditional energyCO2Emission leads to global greenhouse effects.COIncomplete burning of oil and coal,resulting in toxic gases emission.SO2Resulting in acid rain, causing damage tothe eco-system.Dust Increasing risk of Respiratory Disease.NOXSeverely poisonous, giving rise to risks oflung cancer and other diseasesGrowing industries along witheconomic development in Chinastrongly carrying the electricity marketforward.With improved life qualities in China,living electricity driving the demandgoing up.Economic reconstructions push theapplication of renewable energies inChina.Key Factors Affecting DemandChina is in need ofrenewable energies!
  • 5. Country Share of New Installed Capacity 2008All Source: World Wind Energy Report 2008, Global Wind Energy Council0200004000060000800001000001200001400001600001800002000001999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E2010E0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%Total Installed Capacity MW Incremental Capacity MW Increment Growth MWWorld Total Installed Capacity and Incremental Capacity MWWind energy developmentis booming around theworld.Trend of Wind Energy Exploitation around the World0 5 10 15 20 25 30USAGermanySpainChinaIndiaItalyFranceUKDenmarkPortugal2007 2008Installed Capacity: Top 10 Countries MWBackgroundWorldwide capacity reaches121,188 MW, out of which 27,261MW were added in 2008.Wind energy continued its growthin 2008 at an increased rate of 29 %.China continues its role as themost dynamic wind market in theyear 2008.SummaryProposed StrategyMarket Analysis and SWOTExternal Environment
  • 6. Energies Overview20002010E2020E0204060801001201402005 2006 2007 1H 2008Wind Others Small Hydro Large Hydro Nuclear Coal1.18%1.80%2.08%0.74%China Annual Capacity Add Additionsand Wind Energy Growth GW,%Source: China Galaxy Securities:Growing Wind EnergySource: China Galaxy Securities, 2008 Energy InsightEnergy Structure in ChinaWind energy is apromising industry inChina!Advantages of Wind EnergyBackgroundChina’s electricity demandgrowth (9% to 10% annually)has created a capacity gap.Wind is evolving as one ofChina’s top four technologyoptions for new capacity.With coal-fired electricityprices rising, wind is becomingmore cost-competitive.Reliable, affordable and clean.Immense storage, easy access,and low marginal cost. .Wind projects under stablepolicy frameworks are lessaffected by the credit crunch thanhigher-risk investments.Wind energy is the answer toboth the environmental andfinancial crisis!2010EProposed StrategyMarket Analysis and SWOTExternal Environment
  • 7. 2006.1Renewable Energy LawEstablished the framework of thenational exploitation of clean energies. 3principles on wind were proposed:Implement fixed pricing to wind electricitypower.State Grid unconditionally purchases thewind electricity. Price gap would be sharedamong the grid.The state establishes fund to support windpower development financially.2006.10NDRC Move(National Development andReform Committee) improve thestandard of subsidies and lowerthe qualifications of thecompanies to acquire loans fromthe bank and funds.2007.8Market Open PolicyLong-term planning for thedevelopment of renewable energyMake the wind power market morecompetitive and open.Take advantage of coastal areas andinland wind resource.Targeting at a capacity of 5 MkW and 30MkW in the year 2010 and 2020respectively.To form the wind-power center in severalprovinces such as Inner Mongolia, Jiangsu,Shandong and Liaoning.2008.1Price ReformNDRC set the bottom line for theauction price of biding for thepermission to exploit wind energyto avoid malign competition andattract more foreign investments.2008.4Financial SupportThe Ministry of Finance furtherreduce the tax imposed on thewind-energy companies.National Customs cut downtariff on importing advancedwind power technologies andequipments.Political will inChina is strivingfor propellingwind-power marketPolicyPolitical Will Fuels Wind Energy Industry in ChinaProposed StrategyMarket Analysis and SWOTExternal Environment
  • 8. OutlineBackground Strategy Goal, Goal Decomposition andStrategy DirectionsExternalEnvironment1 Market Analysis&SWOT2 Proposed Strategies3Policy OverviewRoles Sites & ModesManufacturer InvestorS1: Positioning inValue ChainCase Study 1:AES’s successin CDM ProjectsCase Study2:How SK enterPetro IndustryIn China2nd Tier Region Off-grid PowerS2: Combination ofCarbon-free Industryand Off-grid PowerSK Vision:Sharing Happiness WhenButterfly Meets WindConclusion: Windenergy industry is verypromising in China infuture.The wind energy market inChina is vast, exploitationremains unbalancedPrice of wind energy willbecome more competitive innear future.Overview of differentplayers in the value chain.ProfitabilityMarket SizeIndustry AnalysisSWOT Analysis
  • 9. Market SizeChief Distributions of Wind Energy in China 107WYear 2007-08 Installed Capacity Increments 106WSource: China Investment Annual 2005Inner MongoliaXinjiangHeilongjiangGansuJilinHebeiShandongJiangxiJiangsuGuangdongZhejiangFujianHainan0 2 4 6Inner MongoliaLiaoningHebeiJilinHeilongjiangJiangsuGansuXinjiangShandongGuangdongFujianZhejiangHainan3.920072008 IncrementsSource: China Wind Energy Association 20092.61.30Chief Distribution and Exploitation of Wind Energy in China0500000010000000150000002000 2001 2002 2003 2004 2005 2006 2007 20080.0%20.0%40.0%60.0%80.0%100.0%120.0%Total Capacity MW Total Grow thSource: China Wind Energy Association, Century SecuritiesFastest Growing %Hainan 568.97Zhejiang 311.04Liaoning 142.52Inner Mongolia 138.93Hebei 126.00Tier 1Tier 2Current ExploitationEnergy DistributionChina’s wind power resources mainlydistribute in the eastern coastal areasand “Three-North Region”-- Northeast,North China and Northwest.Inland wind resource is larger thanthat of coastal areas. The risk ofonshore investments are lower thanthose of offshore projectsChina’s Total Installed Capacity and Total GrowthThe wind energymarket in China isvast, exploitationremains unbalanced.Investment on Wind Energy has beenincreasing exponentially in China atnationwide scale.The wind resources of eastern coastal areasremain unexploited compared to the “Three-North Region”.The markets of Tier-2 districts, with morepotential to develop, grow much faster thanthat of Tier-1 districts.Proposed StrategyMarket Analysis and SWOTExternal Environment
  • 10. ProfitabilityEstimated costs of Wind and Coal Energy0.50.40.70.60.30.20.102000 2005 2010E 2015E 2020EWind Energy CoalSource: Wind Energy 12 in China, China Galaxy SecuritiesNo. Name of wind plantsHighestPriceYuan1 Inner Mongolia ZhuRihe Wind Farm 0.6092 Inner Mongolia Shangdu Wind Farm 0.6093 Hebei Zhangbei Wind Farm 0.9844 Xinjiang Danban City No.1 Wind Farm 0.5335 Liaoning Donggang Wind Farm 0.9156 Zhejiang Cangnan Wind Farm 1.2007 Hainan Dongfang Wind Farm 0.5608 Guangdong Nanao Wind Farm 0.7409 Shanghai Chongming Nanhui Wind Farm 0.773Average Price 0.7692ndTier1stTierThe price of grid-connected wind electricity isgreatly affected by the government’s policies.Price Differentiation and Cost TrendsThe price of grid-connected windelectricity by province (Highest)Current Pricing and Cost In the current market the average price ofelectricity generated by wind farm is still higherthan that of coal. The price disadvantage is themain barrier constraining further development ofwind energy market.Future Prospect In 2020, the estimated cost ofwind electricity the cost of coalelectricity, which will stimulate thewidespread application of windpower.The application of CDM in jointventure projects could make windelectricity more competitive bygenerating extra revenue fromCERs. Price of wind energywill become morecompetitive in nearfuture.Proposed StrategyMarket Analysis and SWOTExternal Environment
  • 11. Industry AnalysisTurbine ManufacturersBrandManufacturerCapacity(kW)% ofdomestic andjoint venturecapacity% ofincreasedtotalcapacitySinovel华锐1402500 29.71% 22.45%Goldwind金风1131750 23.98% 18.12%DEC东汽1053000 22.31% 16.86%Increased market share of Domestic and Chinese-foreign joint venture turbine manufacturers in 2008BrandManufacturerCapacity(kW)% of foreignownedcapacity% ofincreasedtotalcapacityVestas 599700 39.30% 9.60%Gamesa 508300 33.31% 8.14%GE 145500 9.53% 2.33%Increased market share of foreign owned turbinemanufacturers in 2008Brand Market status Main focusGuodian(Longyuan)A specialized wind powerdevelopment companyowning the largest sharesof installed wind powercapacity in China.Three North Region, SoutheasternChina. Case study: JiangsuRudong Wind Power ConcessionProjectDatangRank No.2 in China windmarket ownership. Withgreat impact in theNorthern China electricitymarket.Northern China. Shanghai. CaseStudy: Shanghai Donghai BridgeOffshore wind farm.HuanengThe largest independentelectricity generator inAsia. With solidgovernment background.Inner Mongolia, Shandong,Sichuan, Guangdong, Case Study:Huaneng Zhaobei Wind FarmState GeneratorsTop 3 State generators in wind marketSummary of turbine manufacturers in ChinaSinovel, Goldwind and DECcapturing more than 57% of themarket. Vestas, Gamesa and GEdominating among foreignmanufacturers.With ambitious wind targets,state generators areharnessing strong capacityand political will to carry themarket forward.All Source: China Wind Energy AssociationWhile turbine assemblymanufacturing booming, keycomponents witnessing shortage.Chinese OEMs to dominatesupply market in the long term.Foreign entrants areseeking a foothold throughnear-term partnerships, withexploration targeting long-term pipeline activations.Proposed StrategyMarket Analysis and SWOTExternal Environment
  • 12. •Success in KoreaBellwether in the industry of Jeju Island, South Korea.Achievement in various energy fields around the world.•Green Ocean Strategy.Bring happiness to people by implementing SRI in greenenergy field.•Robust Financial AbilityFortune 500 Company and high reputation in China.•ExpertiseSeveral wind blade patents, goals to become one of thelargest wind machine manufactures in the world.•LocalizationLocalization of the business in China to be improved,developing coordination with the domestic companies andlocal government.•PolicyThe regulation of foreign capital to enter the energy industry•Market ShareInsufficient infrastructure and facilities in China comparedwith the professional wind power companies, such as GE,Vestas, etc..Strength WeaknessOpportunity•DemandAn answer to the world energy crisis and China’s rapiddevelopment•CompetitorThe low quality of domestic wind-energy investmentcompanies.•Nationwide SupportAttention of government on the clear energy and favorablepolicies towards .Threat•Financial CrisisFinancial Crisis world widely impairs the process of hugeinvestment for lack of the liquidity.•Entrance CostHigh cost of the wind power and subordinated negotiationpower when coordinated with State Grid.•Technological UncertaintiesSome pending technological problems such stabilization ofthe grid due to the high levity of wind power.SWOT TableProposed StrategyMarket Analysis and SWOTExternal Environment
  • 13. OutlineBackgroundProfitabilityMarket SizeIndustry AnalysisStrategy Goal, Goal Decompositionand Strategy DirectionsExternalEnvironment1 Market Analysis&SWOT2 Proposed Strategies3Policy OverviewSWOT AnalysisRolesManufacturer? Investor?S1: Positioning inValue ChainCase Study 1:AES’s successin CDM ProjectsCase Study2:How SK enterPetro IndustryIn ChinaSK Energy could expandhis roles in the value chainand create additional value.Conclusion: Windenergy industry is verypromising in China infuture.Conclusion: SK Energycould join hands withplayers in value chain toseize great opportunities inthe vast and growingmarket.
  • 14. Strategy goal, goal decomposition and strategy directionsGoalTo enter China’s windpower market and explore“Green Ocean” strategy byinvesting in wind energymarket of China.To cut down the costand gain a higher profitTo choose a niche marketto enter and boost its share(Social ResponsibilityInvestment) To secure itsposition as a top global “LowCarbon, Green Growth”company, to create and sharehappiness with Chinese people.MarketProfitabilitySRITo Be a Pure Turbine Manufacturer or aWind Farm Investor?To find a new wind-farm new potentialareas and modelCriteria EvaluationThe difficulty toenter the marketThe Current Market ShareThe technologyadvantageThe number of core technologypatent main turbine manufacturesThe trend of themarketdevelopmentThe share of different types of theturbine company in different years•The exploitation of wind-resources isunbalanced.•The current prevailing grid-connected modelhas faced with a lot of problems such as highcost, difficulties to sustain the stabilization of thegrid and so on.1.Goal Setting2. Decompositionof the Goal 3. Strategy DirectionsProposed StrategyMarket Analysis and SWOTExternal Environment
  • 15. Proposed Strategy 1: Positioning in the Value ChainA turbine manufacturer or a wind-farm investor?0%20%40%60%80%2004 2005 2006 2007 2008Domestic(Joint Venture) Foreign InvestorsWind Equipments Market Share in China(Domestic and Foreign Investors)The market share change for foreignmanufactures is declining in recent years anddomestic companies have lead the turbinemanufacturing industry.Rank Institute NamePatentNumbersOriginalCountryBusiness Realm1 GE 211 U.S.ElectricalManufacturing2 Mitsubishi 211 JapanElectricalManufacturing3 (Person) Wobben Aloys 141 GermanyWind PowerGenerationEquipments4 Vestas 93 DenmarkWind PowerGenerationEquipments5 REpower System 63 Germany Wind Turbine6 LM Glasfiber 56 Denmark Turbine Blade7 Siemens 48 GermanyElectricalManufacturing8 Ebara 47 JapanFluid ConveyingEquipment9 Fuji Heavy 47 JapanElectricalManufacturing10 Gamesa 52 Spain Wind TurbineTop 10 Institutes (People) with Most Patents in WindEnergy Technology in DII DatabaseSK doesn’t have a technology advantage when competing with theseindustry leaders.It is not the proper time for SK tobecome a turbine manufacturer inChina. SK could use its greatcapital power to invest in theconstruction of wind farms.Proposed StrategyMarket Analysis and SWOTExternal EnvironmentSource: DII Database
  • 16. ValueChainPositioningStateGeneratorsChineseDevelopersForeignEntrantsStateGeneratorsChineseDevelopersChineseDevelopersForeignEntrantsLocal playersseekingtechnicalexpertiseThe Clean DevelopmentMechanism (CDM) is anarrangement under the KyotoProtocol allowing companiesfrom industrialized countries toinvest in projects that reduceemissions.By applying CDM jointventure projects on cleanenergies become possible inChina.The Permitting Negotiationsare usually local, complex andhighly project-specific.Foreign entrants seekingcooperation with the stategenerators under momentumpolicies.State Generators andChinese Developers lack ofexpertise and advancedtechnology.Consultancy through valuechain is in need on issues likesite acquisition, componentsmanufacturing, CDM applying.Foreign playersseeking verticalintegration(ownershiplimited to 49% forCDM qualification)SK Energy could expand hisroles in the value chain andcreate additional value.Proposed Strategy 1: Positioning in the Value ChainSiteAcquisitionTechnicalDevelopmentPermittingNegotiationFinancing EPC OperationProposed Strategy 1: Positioning in the Value ChainState GeneratorsProposed StrategyMarket Analysis and SWOTExternal Environment
  • 17. Case Study 1: AES’s role in a CDM ProjectsProposed Strategy 1: Positioning in the Value ChainProject Title: Guohua Hebei Huanghua 49.5 MW Wind FarmProject (Phase I)Completion Date: 24th December 2008What SKmay doProjectProcessOutcomeAbout: AES operates132 power generationfacilities worldwide.InvestorEquity share: 49%Guohua ASE(Huanghua)Wind PowerCo. Ltd.ConsultingMerrill LynchCommodities(Europe) Ltd.Project Guohua49.5 WM WindFarm Project(Phase I)GE, Vestas, DatangCompletion date: 12-24-2008Invest via CDM Turbine SupplierFundingWind Energy Sells toYearly Capacity: 99,160WMhNorth ChinaPower Grid•33 wind turbines with the unit capacity of 1500kW and total capacity of49.5MW.•Generating greenhouse gas (GHG) emission reductions by avoiding CO2emissions from traditional energy, and will contribute to sustainabledevelopment of the local community and the host country by reducinggreen house gas (GHG) emissions of 106,647 t CO2 per year.Financial Indicator for the Proposed ProjectIRR (Total Investment)Benchmark Rate = 8%Without CDM Revenue 6.24%With CDM Revenue 9.58%All Source: United Nations Framework Convention on Climate ChangeCDM is a good way for foreign entrants toinvest in the wind energy market in Chinawhich would greatly reduce the cost.AESCompanyProposed StrategyMarket Analysis and SWOTExternal Environment
  • 18. Case Study 2: SK successfullyknocked the door of China’sPetrochemical industryBackground:•Petrochemical industry is the core and strategic industry that Chinesegovernment always wants to keep strong control of it, which impeding the foreignenergy companies’ entrance.•SK tried hard to enter the China’s Petrochemical industry, finally succeed viathe relationship of Sino-South Korea relations.SK’s TrialSK’s Good Relationship with GovernmentsStudied the plannedPetrochemicalprograms in China,Seeking morecommercialopportunities.2006.4Negotiated withHubei ProvinceGovernment onthe 0.8 milliontons Ethyleneprojects.2008.5No break-throughs weremade1990Firstly settled itsbusiness in china1992Establishmentof diplomaticrelations. SKas a bridge.2008The director of SKaccomplished the SouthKorea president’s officialvisit to China severaltimes.What Can We Learn?wellpreparationand carefulplanninggoodrelationshipandcoordination+ =Win-win solution forwind energy in China!Good relationship andcoordination play animportant role in the trialof SK to knocks the doorof China wind energy!Connectingtwo countriesOther competitorscompeted for theprojects0.8 million tonsEthylene projectsin WuhanProposed Strategy 1: Positioning in the Value ChainSK Energy, SinopecJoint Venture35% EquityBefore 2006Proposed StrategyMarket Analysis and SWOTExternal EnvironmentSouth KoreanPresident’s officialvisit to China to , SKgot approval of theproject.2008.5.27
  • 19. OutlineBackgroundProfitabilityMarket SizeIndustry AnalysisStrategy Goal, Goal Decomposition andStrategy DirectionsExternalEnvironment1 Market Analysis&SWOT2 Proposed Strategies3Policy OverviewSWOT AnalysisSites & Modes2nd Tier Region Off-grid PowerS2: Combination ofCarbon-free Industryand Off-grid PowerU-Eco Cities in Northernand Southern ChinaConclusion: Windenergy industry is verypromising in China infuture.Conclusion: SK Energycould join hands withplayers in value chain toseize great opportunities inthe vast and growingmarket.
  • 20. Proposed Strategy 2: Site Acquisition and ModeSite acquisition: Tier-1 Vs. Tier-22-tier areas are morecompetitive than 1-tierareas.Mode: Grid-Connected Vs. Off-GridGrid-Connected ModeMore prevailing, applied in most ofcurrent projects.Wind electricity should consolidatedto the State Grid.Difficulty to maintain thestabilization of the gridHigh cost (0.5-0.6 yuan/kWh)Off-grid mode is morepromising than grid-connected mode.Proposed Strategy 2: Site and Mode SelectingOff-Grid ModeMore and more matureServes directly for the large scaleindustry baseIncreasing Government AttentionLow cost(0.05-0.06 Yuan/kWh)Tier-1: “Three North Areas”Market is relatively saturated.Increasing rate reaching bottleneckDisadvantageous PriceLack of Industrial IntegrationTier-2: “Costal Areas”Market is relatively saturated.Increasing rate reaching bottleneckDisadvantageous PriceLack of Industrial IntegrationAdvantagesProposed StrategyMarket Analysis and SWOTExternal Environment12
  • 21. ShandongNorthwesternHebei BaseMiddle-southernLiaoning PeninsulaBaseCombine the off-grid wind-power industry with thedevelopment of Tianjin Binhai New District and the strategyof Revitalizing the Old Industrial Base in Northeast China.Reduce the CO2 and other toxic material emission.Built FarmsFarmsUnder-ConstructionThe market isincompletely exploited;SK has an opportunity toseize!HebeiLiaoningTianjinWhy Bohai-Rim District?1Integration of Off-Grid Wind Power withRevitalizing the Old Industrial BaseU-Eco City inNorthern ChinaLong history of industries development, mainlyenergy-hungry heavy industriesFirm support from the local governmentSound foundation of wind-power development010203040506070802000 2001 2002 2003 2004 2005 2006Hebei Liaoning Shandong’97-’06 Bohai-Rim DistrictWind Energy Installed Capacity 104WBooming Capacity23Steel, Raw material,Petroleum Fine Chemical,electrolytic aluminum,Chlor-alkali, seawaterhydrogen manufacturingindustries. Important portsas Qingdao and Dalian.Eastern ShandongPeninsula BaseProposed Strategy 2: The Combination of Off-Grid Wind Power with Two Industrial BasesProposed Strategy 2: Off-Grid Wind Power in Bohai-Rim Industrial BasesProposed StrategyMarket Analysis and SWOTExternal Environment
  • 22. ZhejiangJiangsuCombination of Off-Grid Wind Powerwith Yangtze Delta Carbon-free Industrial BaseShanghai-SouthernJiangsu BaseNorthernZhejiangCostal BaseNorthernJiangsu BaseCombining off-gridelectricity withcarbon-free energy-hungry industriesin Yangtze Delta,develop the eco-tourism.AnhuiJiangxiU-Eco City inSouthern China The increasing demand for energy Rich wind resources and off-coastal land thatremain unexploited. Good Policy Environment The Yangtze River Delta boasts the advantageto solve the technology and capital problemsWhy Yangtze River Delta?Built and Under-Construction Wind Farms in Yangtze Delta ’07Current Status of ExploitationFarm NumbersTurbineNumbersCapacity %NationShanghai 3 38 27.24 2.63Jiangsu 3 244 85.80 8.30Zhejiang 2 264 23.33 2.26Total 8 546 136.37 13.19Built FarmsFarmsUnder-Construction213The market isincompletely exploited;SK has an opportunity toseize!Proposed Strategy 2: The Combination of Off-Grid Wind Power with Two Industrial BasesProposed Strategy 2: Off-Grid Wind Power in Yangtze Delta Industrial BasesProposed StrategyMarket Analysis and SWOTExternal EnvironmentNewly chemicalindustries such asChlor-alkali Industry,seawater hydrogenmanufacturing,electrolytic aluminumand steel, PowerMachinery industries.Integrating theshipbuilding, steel,machinery industries
  • 23. Experimenting u-Echo citywith combined applicationof wind energy and ITtechnologies.U-Eco CityRealize SRI by enhancingChina renewable energydevelopment. CDM is themain method.SRIActive part in Green OceanStrategy supporting energysolution for in remote areas.Green OceanStrategyLower the carbon-dioxiderelease and achieve greengrowth in electricitygenerating.Low CarbonUsing off-grid windelectricity supportingenergy-hungry industrialbases in China.Off-GridIntegrationVision
  • 24. Thank You!LI Guang, liguang19881020@gmail.comZHAO Tian, zhao22306@hotmail.comZHU Sheng, zhu.sheng2@gmail.comSchool of Management,Fudan UniversityRubicon Team

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