2. Executive Summary
Total wind installed capacity was pegged at 12,210 MW in 2008
Wind energy installations grew by 107% in 2007‐08
Market Inner Mongolia Autonomous Region has the highest capacity of installed wind power
It is estimated that China will be the global leader in wind energy installation by 2012
By 2020, installed capacity is expected to reach 100 GW
Drivers: Challenges:
Drivers &
Di & – Abundance of resources – Weak grid structure and supply of
k d d l f
Challenges – Government subsidies resources
– Strong Investment Potential – Price barrier
Joint Ventures for component development
Joint Ventures for component development
Emphasis on capacity building affecting efficiency
Trends Focus on off‐shore capacity generation
Coal back‐up for wind powered electricity
The market has a sizeable number of players with strong influx of foreign players
Competition Domestic Players Foreign Players
Major players Shanghai
Sinovel Goldwind Science and Vestas Wind
Electric
Electric Gamesa Nordex AG
Nordex AG
Wind Technology Co. Ltd. Systems
Group
WIND ENERGY ‐ CHINA.PPT 2
4. World wind energy market has been growing steadily with
the growing demand for renewable energy sources
Overview Installed Capacity
•Wind is a domestic, inexhaustible source of MW
energy and is free from fuel price volatility 200,000 190,000
+27%
•Wind energy accounted for 1.5% of the total 152,000
150,000
electricity generated in 2008 121,188
100,000 93,927
•In 2008, global wind turbine investments 74,151
amounted to USD 52.5 bn
amounted to USD 52 5 bn 50,000
50 000
USD 15.8 bn was invested in the EU‐27
0
•Over 2005‐08, the global market for wind 2006 2007 2008 2009e 2010e
turbines has increased by 30‐40% annually Electricity Generation
Capacity of wind turbines installed have been
f d b ll d h b
growing to 3 MW and higher towards large scale bn kWh
capacity additions 1,500
1,214
•99% of global offshore installations are located +10%
in Europe
in E rope 1,000
1 000 864
687
•China has been pegged as one of the most 500
500
dynamic wind markets 312
127
In 2008, the wind market more than doubled the
installations for the third consecutive year 0
2006 2010e 2015e 2020e 2025e 2030e
WIND ENERGY ‐ CHINA.PPT 4
5. Major growth in global wind energy market is expected to
take place in North America and China
Overview Expected Capacity Breakdown
•It has been estimated that global wind energy
2020
capacity will reach 1,500 GW by 2020 2.0%
Large scale investments in research and 6.0%
3.0%
development will further the market 8.0%
5.0%
Improving government policies will create 50.0%
incentives for investments among new and p
Europe
existing players 26.0%
26 0%
North America
China
India
Capacity Addition in 2008 OECD Pacific
Transition
Economies
United States 2030 Rest of the
China
World
31.7% 31.6% India 2.0%
Germany 5.0%
3.0%
Rest of the World 10.0% 9.0% 46.0%
6.3%
6.6% 23.8%
23 8% 27.0%
NOTE: Transition Economies ‐ Former Soviet Union states, apart from those now part of the EU
WIND ENERGY ‐ CHINA.PPT 5
7. Overall energy market, in China, has been growing steadily
with coal being the major source of energy
Overview Total Energy Consumption
•China is the second largest consumer of Quadrillion Btu
energy in the world after the U.S. 200 +3%
3%
It accounts for 16% of the energy consumed 141
156
globally 150 124
106
91
•Its energy demand is forecasted to grow at 4% 100 74
annually till 2030
y 50
•China has set a target of deriving 20% of 0
energy from renewable sources by 2020 2006 2010e 2015e 2020e 2025e 2030e
80% of its energy is estimated to be derived
predominantly from coal
predominantly from coal
Energy Mix (2008)
•Government’s plans and programs, laws and
standards, fiscal incentives and subsidies, 0.8%
5.9% Coal
industrial promotion and price management 3.4%
Oil
policies is expected to positively impact the
policies is expected to positively impact the 19.5%
0.1%
Hydro
renewable energy market Gas
Nuclear
70.4% Others
WIND ENERGY ‐ CHINA.PPT 7
8. Wind energy in China has been growing dynamically and is
expected to attract further investments
Overview Installed Capacity
•Wind energy installations grew by 107% in MW
2007‐08, second only to Bulgaria 100,000
100 000
100,000
•Inner Mongolia Autonomous Region, an 80,000 +36%
important energy base in North China, has the 60,000
highest capacity of installed wind power
40,000 30,000
•It plans on developing large scale, centralized
•It plans on developing large scale centralized 20,000 12,210
5,910
projects, with high voltage and long distance 567 764 1,260 2,599
0
transmission 2003 2004 2005 2006 2007 2008 2010e 2020e
•The Chinese wind industry is heavily reliant on Electricity Generation
financing through the Kyoto Protocol s Clean
financing through the Kyoto Protocol’s Clean
bn kWh
Development Mechanism
400
•Cost competitiveness and government 315
initiatives has allowed the market to develop 300
+23%
•It is estimated that China will be the global 200
leader in wind energy installation by 2012
99
100 70
28 42
2
0
2006 2010e 2015e 2020e 2025e 2030e
WIND ENERGY ‐ CHINA.PPT 8
10. Drivers and Challenges ‐ Summary
Challenges
Drivers Weak grid structure and supply of
resources
Abundance of resources
Price barrier
Government subsidies
Strong Investment Potential
WIND ENERGY ‐ CHINA.PPT 10
11. Abundance of on‐shore and off‐shore wind power resources
will act as a major driver for the market
Abundance of wind resources across provinces Impact
• Technically exploitable resource is around 1200 GW, distributed across the southeast coastal
areas, adjacent islands, far north and the Qinghai‐Tibetan Plateau
• Vast stretches of barren plains aided by the circumpolar jet stream current gives North China
an annual power density range of 200‐300 watts per square meter
Winds have high mean speeds exceeding 9‐10 meters per second
Chief areas include Inner Mongolia Autonomous region, Hebei, Jilin, Liaoning, Heilongjiang, Gansu, Xinjiang,
Ningxia
• In southeastern coastal regions like Shangdong, Zhejiang, Hainan, Guangdong, Guangxi and
Shanghai, wind energy density is around 200 watts per square meter
• Eastern coastal waters with 5‐20 m depth yield estimated wind energy potential of ~700 GW
• The country’s wind and hydro resources complement each other in different seasons:
Wind energy is in poor supply in summer but is compensated by abundant rainfall which stabilizes energy
supply
• China thus aims to leverage its geographical advantage to reduce dependence on coal fired
energy generation with its renewable energy alternative
WIND ENERGY ‐ CHINA.PPT 11
12. Government incentives and influx of investments will boost
wind power generation across provinces
Subsidies, financing programs and tax concessions have propelled growth Impact
• China’s wind power subsidies had risen from USD 17 mn in 2002 to USD 352 mn in 2008
• In 2002, the Ministry of Finance and the State Duty Bureau reduced VAT on wind energy
generation from 17% to 8.5%
Average price decreased by USD 0.05 – 0.06 per kWh
• Wind Power Concession was introduced that allowed local government to invite international
and domestic players to develop 100 MW wind farms on potential wind sites
• State Economy & Trade Commission (SETC) implemented the National Debt Wind Power Program
This gave favorable interest subsidies to build wind farms with locally manufactured turbines
Strong investment potential
Strong investment potential Impact
• New sustainable energy investment grew by 18% in 2008 to USD 15.6 bn, used primarily for wind
energy and some biomass plants
• Chinese wind power companies that are wholly owned or majority (51%) owned get (Clean
Development Mechanism) CDM certifications which increases returns for project investors
China’s CDM Projects, as of October 2008, stood at 254 with an estimated capacity of 13,072 MW
• Large scale investments are flowing in due to the high demand and profitability prospects
• This has triggered greater capacity installation for more electricity generation
WIND ENERGY ‐ CHINA.PPT 12
13. Grid constraints, geographical demand‐supply mismatch
and pricing will act as barriers to growth
Weak grid structure and supply of resources Impact
• Geographical distribution of the wind resource does not suit China’s power load profile
Northern areas with a plentiful wind power are less populated and have relatively little demand
Coastal regions with high power load have fewer wind rich areas
• Areas with abundant wind resources are far away from the power load centres and require
improved transmission mechanisms to supply power to required destinations
• Most new wind farms are in the north‐west, where grid structure is weak
• Growth ahead of national plan, makes it difficult to align grid planning and project development
Cumulative wind capacity was set at 10 GW by 2010 but has already overshot 12 GW in 2008
• In 2008, the industry suffered 300 mn kWh losses due to the brownouts of power grids
Of China's 12 2 GW of installed power in 2008 only 8 9 GW reached the electrical grid
Of China s 12.2 GW of installed power in 2008, only 8.9 GW reached the electrical grid
High electricity generation prices Impact
• The government has stopped bidding system through tenders and instead has set fixed prices
This move was made to promote wider adoption of renewable energy and ensur profitability of wind farms
• Investors benefit from price guarantee but coal‐powered electricity gains price advantage
• Wind powered electricity now costs between 0.51‐0.61 Yuan per kWh, which is more than
double the price of thermal electricity which is around 0.35 per kWh
• Prices are less competitive as there is no subsidy for off grid installations like the solar sector,
where they are subsidized by 70%
WIND ENERGY ‐ CHINA.PPT 13
15. Trends ‐ Summary
Coal backup for wind power
plants International participation
Key
Trends
Growth in off‐shore wind Push for more capacity affecting
generation quality of output
WIND ENERGY ‐ CHINA.PPT 15
16. Market has observed partnerships between domestic and
foreign players
International participation
• Initially, Chinese turbine companies lagged behind foreign manufacturers
They could not ramp up to utility scale turbines of 1 MW or more
Global
integration
integration
They used fixed‐pitch, constant‐speed control systems, which were less efficient than the variable‐pitch,
variable‐speed control systems employed in Western countries developing the
market
• “Local source” provision of China’s Renewable Energy Law motivated most major foreign wind
companies to partner with Chinese companies and build factories in China
• Locally manufactured components combined with the expertise of foreign firms has led to
Locally manufactured components combined with the expertise of foreign firms has led to
reduced production costs
Major Joint Ventures
Year Chinese Company Foreign Company JV Product Offering
China Huadian New Energy
2009 Gamesa (Spain) Wind turbines
Development Co.
Chongqing XinXing Fengneng GE Drivetrain Technologies Large diameter gears for wind
2009
Investment (USA) turbines industry
2005 CASC Acciona Energia (Spain) Wind turbines
Ningxia Electric Power Group
2005 Nordex (Germany) MW‐class turbines
Ningxia Tianjing Electric Energy
Qingdao Wind Energy
Qingdao Wind Energy Wind turbines with rotary
Wind turbines with rotary
2001 AEROMAG Corp (USA)
Generation Equipment Works engines
WIND ENERGY ‐ CHINA.PPT 16
17. Players in the market have been focusing on capacity
installation and are expanding offshore power generation
Push for more capacity affecting quality of output
• With more focus on capacity building than on quality, efficiency is being hampered
Lack of
Farms take 5 years to be built but are now made fast and without adequate research, to meet state targets
efficiency
efficiency
Thus, they lack guarantee of load factor and output leading to no guarantee of financial viability despite huge
• While power generation capacity increased 10‐fold, efficiency of generation stayed constant at growth
10% between 2005‐2008 with significant idle power
Inner Mongolia's power capacity is about 3.5 GW but nearly one‐third of that has been idle
From Jan‐Sep 2009, wind farms produced 18.2 bn kWh of electricity nationwide ,which was only about 0.45
% of total electricity churned out by China's major power plants
Growth in off shore wind generation
Growth in off‐shore wind generation
• Chinese National Development and Reform Commission (CNDRC) estimates an offshore market
Tapping off‐
with potential exploitable capacity of 100 GW in waters of 10 m depth
shore reserves
Wind farms in waters up to 20 m and 30 m depth could lead to 300 GW and 500 GW wind power
of wind power
respectively
• China plans to increase installed wind power capacity to 35 GW by the end of 2011
5 GW of which is to be from offshore wind farms
• Dong Hai Bridge wind farm, being built near Shanghai and is the first to be approved by CNDRC
• Nanri Island in Fujian is another offshore wind plant providing electricity to 50,000 islanders
WIND ENERGY ‐ CHINA.PPT 17
20. Government Initiatives ‐ Summary
National Renewable Energy
Standard
Buy Chinese Procurement
B Chi P t
Research and Development
Policy
Key Initiatives
Renewable Energy Law Feed‐in‐Tariff
WIND ENERGY ‐ CHINA.PPT 20
21. Government Initiatives (1/4)
National Renewable Energy Standard
• China’s electricity demand is expected to increase by 250% between 2004 and 2030
Mandates and • Target set to generate 20% of energy from renewable energy sources by 2020 to reduce carbon emissions
• Shut down least efficient coal power stations with capacity under 100 MW
Shut down least efficient coal power stations with capacity under 100 MW
early effects
l ff
• In 2008, 4.14 bn KWh of wind electricity was generated from Inner Mongolia that saved 1.45 mn tons of coal
and reduced emissions of 3.78 bn tons of carbon dioxide
• Estimated market for clean energy technology will grow to USD 190 bn in 2010 and USD 585 bn in 2020,
p
presenting a wide range of opportunities
g g pp
Investment
I t t
• China is spending USD 9 bn a month on clean energy
• Proposed investment ‐USD 140 bn for building 7 wind farms by 2020, each with minimum capacity of 10 GW
Generation Targets Carbon Dioxide Emissions from Energy Consumption
Energy Type 2010 2020 MMT
Hydro 190 GW 300 GW 10,000 +11%
Wind 30 GW 100 GW 5,558 5,862 6,283
5,132
5,000 4,102
Biomass 5.5 GW 30 GW
Bio Ethanol 3 mn ton 10 mn ton 0
Bio Diesel 0.2 mn ton 2 mn ton 2003 2004 2005 2006 2007
Solar Power 0.3 GW 20 GW
China is the world s largest emitter of carbon dioxide
China is the world’s largest emitter of carbon dioxide
Solar Water Heaters
l 150 mn m3 300 mn m3
WIND ENERGY ‐ CHINA.PPT 21
22. Government Initiatives (2/4)
“Buy Chinese” Procurement Policy
• In 2004, NDRC formulated that for any wind farm project 70% of the equipment is to be manufactured in
China
Directives • In 2008 tariff‐ free import of wind turbines less than 2 5 MW capacity was eliminated
In 2008, tariff‐ free import of wind turbines less than 2.5 MW capacity was eliminated
• Projects under the USD 586 bn stimulus package require government permission to buy foreign parts or
services
• Setting an equipment ratio for wind farms supports the growth of domestic turbine manufacturing industry
• With installation of turbines under 1,000 KW stopped, European manufacturers were barred from entering the
, pp , p g
Effects
Eff t
market as they commonly produce 850 KW turbines
• Increase in domestic turbines market reduced production costs and also generated jobs in China
Market Share of Foreign Turbine Makers
%
%
100 79%
50
17%
0
2004 2009
1997 2000 2004 2008 2009
• “Ride the Wind” • 9th Five Year Plan pegged • Adjusted the import • Banned installation of
• Tariff free import of
program required wind minimum local custom tariff on WTG to foreign wind turbines
wind turbines under 2.5
turbine generators to
g components at 40%,
p , 8% and that of its with capacity less than
p y
MW stopped
MW t d
use 20% local parts made 50%in 2003 components to 3% 1000 KW
WIND ENERGY ‐ CHINA.PPT 22
23. Government Initiatives (3/4)
Feed‐in‐Tariff
• To maximize wind electricity production and meet target installed capacity by 2020, the government through
concession programs invited open bidding by foreign and domestic players for 100 MW farms
Overview
• The policy has been revised only recently to protect the interest of wind farms by checking underbidding
• Feed‐in tariffs, by ensuring stipulated electricity rates, has attracted investment to this sector
• Till July 2009, government selected potential investors with power price and domestic content as key criteria
• Purchase of all electricity generated was then guaranteed through long‐term power purchase agreements
• Applicable feed‐in tariffs were determined based on 2 different periods during the project’s lifetime – typically
Before
25 years
Benchmarking
• In the first phase, feed‐in tariff equaled the bidding price proposed by the winning bidder up to an electricity
generation level of 30,000 accumulative equivalent full load hours
ti l l f 30 000 l ti i l t f ll l d h
• In the second part, feed‐in tariff was set as the average electricity price of the local grid at that time
• Feed‐in tariffs for wind power projects approved from 1 August 2009 onwards are fixed on a centrally‐
determined price basis
determined price basis
• China is divided into 4 different types of wind‐power resource areas with different wind electricity prices
Current Scenario • Electricity in high wind power regions like Inner Mongolia cost 0.51 Yuan/kWh whereas in least powered areas
it costs 0.61 Yuan/kWh
• Standardized prices would avoid the current low returns, level out losses being experienced by generators and
thus stimulate wind power investments
WIND ENERGY ‐ CHINA.PPT 23
24. Government Initiatives (4/4)
Renewable Energy Law
• Implemented from January 2006, aiming to promote the use of renewable energy, increase energy supply,
safeguard energy security and protect the environment
Optimising Grid
Optimising Grid
• According to the law, a power grid company must sign a grid connection agreement with the wind power generating
Power Capacity
company and purchase the full amount of the wind power generated by it
and Electricity • Grid companies are specifically required to expand the scope of distribution of power generated from renewable
Generation energies, develop and apply technologies like smart power grids and energy storage for better power management
• This is to ensure optimum grid connectivity and reduce idle power
Investment in Research and Development
• National Development and Reform Commission (NDRC) and the Ministry of Science and Technology (MOST) have
National Development and Reform Commission (NDRC) and the Ministry of Science and Technology (MOST) have
both directly subsidized research and development on key renewable energy technologies
• MOST supports research and development through two national High‐Tech Research and Development programs
863 Program supports the commercialization of new technologies
973 Program supports basic science research
R&D Support
R&D Support
• These programs help Chinese WTG manufacturers to successfully develop high quality components
• Subsidies for R&D enable firms to build strong technological support and expand rapidly
• Mingyang Electric Co. Ltd. received USD 8.78 mn federal subsidies to develop its 1.5 MW and 3 MW wind turbines
p
• Sinovel Wind Co. Ltd. received USD 11.27 mn subsidies from the NDRC to develop offshore wind turbines
WIND ENERGY ‐ CHINA.PPT 24
26. China’s wind energy market has become highly competitive
with many large players looking to gain market share
Overview Market Share (2008)
•China has become the world’s largest market
Sinovel
for new installed wind capacity globally 22.4%
22 4% Goldwind
•There are more than 70 wind turbine Vestas
41.8%
manufacturers in China Gamesa
•Domestic players have been focusing on 18.1% Others
meeting indigenous demand
meeting indigenous demand
8.1% 9.6%
Types of Wind Turbines Sold Segmentation Among Producers
Domestic
Type 2006 2007 2008 Foreign
Increasing 100%
Above 1.5 MW 6% 11% 14%
sales of
1.5 MW
1 5 MW 23% 40% 42% large scale
l l 45.0%
45 0%
57.5%
wind 75.6%
850 Kw 35% 24% 21%
turbines
750 KW 31% 25% 23%
55.0%
600 Kw and 42.5%
5%
% 0%
% 0%
% 24.4%
24 4%
below
b l
2006 2007 2008
WIND ENERGY ‐ CHINA.PPT 26
27. Domestic Players in the Market (1/12)
Company Snapshot: A‐Power Energy Generation Systems Ltd.
Corporate Information Financial Performance
Revenue
Headquarters
H d t Shenyang
Sh Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 2003 300 264.9 40
Distribution generation systems and 30
Area of Expertise 200
manufacturing wind turbines 152.5
20
98.7
98
Jinxiang Lu – Chairman and CEO 100 75.5
Key People 10
John S. Lin – COO
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• The largest provider of distributed power generation systems in China, focusing on energy‐efficient and
environmentally friendly projects of 25 MW to 400 MW
• In 2008, it entered the wind energy market
• It has built China's largest wind turbine manufacturing facility in Shenyang, Liaoning Province
Total annual production capacity stands at 1,125 MW
Technologies have been licensed from German FUHRLANDER AG and Denmark‐based Norwin
• March 2009, entered into an agreement with GE Drivetrain Technologies to produce wind turbine gearboxes
•HHas strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to
i l i hi i hT i h U i i i B iji d h Chi A d fS i i G h
develop and commercialize other renewable energy technologies
WIND ENERGY ‐ CHINA.PPT 27
28. Domestic Players in the Market (2/12)
Company Snapshot: China Resources Power Holdings Company Ltd.
Corporate Information Financial Performance
Revenue
Headquarters
H d t Hong Kong
H K Revenue Profit
fi
USD bn Profit / Loss USD mn
Founded 2001 4 500
3.4
Investment, development, operation and 3 400
Area of Expertise 2.2
management of power plants 300
2
1.3 200
Wang Shuai Ting – President and CEO 1 0.8
Key People 100
Wang Xiao Bin – CFO
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• Developed a plant in Chengtian comprising of 66 0.75 MW wind turbine units sourced from domestic manufacturers;
electricity generated by the wind farm is sold into the Guangdong provincial power grid
On‐grid tariff has been approved at USD 102.5/MWh)
• Th Chi R
The China Resources Power Qiaowan Phase‐I Wind Farm Project
P Qi Ph I Wi d F P j t
Plans on building 201 MW of capacity within the Gansu complex
The plant is expected to commence commercial operation in 2010 and will supply electricity to the northwestern power grid
• Plans on spending USD 293‐439 mn annually to boost its wind‐power generating capacity, taking advantage of state
support policies for clean energy
support policies for clean energy
This investment will allow the development of six wind farms with total generating capacity of 300 MW
WIND ENERGY ‐ CHINA.PPT 28
29. Domestic Players in the Market (3/12)
Company Snapshot: China Windpower Group Limited
Corporate Information Financial Performance
Headquarters Hong Kong
Hong Kong Revenue
Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded NA
80 15
Wind farm investment, equipment 60.1
60
Area of Expertise manufacturing, and design, construction, 41.5 10
40
operation and maintenance of wind farms
ti d i t f i df
5
20
Key People Liu Shunxing – Chairman and CEO 6.3 7.6
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• It currently has several wind farms in Jilin, Liaoning and Inner Mongolia, together with approximately ten wind power
subsidiaries involved in wind farm construction, operation and maintenance, equipment manufacturing, gearbox
design & components fabrication
•E t d i t
Entered into an agreement with Fuxin Municipal Government of northeast China's Liaoning Province to acquire the
t ith F i M i i l G t f th t Chi ' Li i P i t i th
exclusive rights for exploring 500 MW wind power resources
• It plans on investing in a 1,500 MW wind farm in Baicheng City in northeastern China's Jilin Province
It plans on selling the electricity generated by the wind farm to the power grid for USD 0.089 per kilowatt hour
It signed an MOU with the Baicheng Wind Power Development Steering Committee for the development of this wind farm
It signed an MOU with the Baicheng Wind Power Development Steering Committee for the development of this wind farm
WIND ENERGY ‐ CHINA.PPT 29
30. Domestic Players in the Market (4/12)
Company Snapshot: CLP Group
Corporate Information Financial Performance
Revenue
Headquarters
H d Hong Kong
H K Revenue Profit
fi
USD bn Profit / Loss USD bn
Founded 1901 8 7.0 2.0
6.5
5.9
6 4.9 1.5
Electricity generation, transmission and
Area of Expertise
distribution business
distribution business 4 1.0
2 0.5
Key People Andrew Clifford Winawer Brandler – CEO
0 0.0
2005 2006 2007 2008
Business Highlights
Business Highlights
• The largest external investor in China's power industry with interests in nearly 20 projects located across nine
provinces
• Developed the Changdao wind farm in the Shandong Province of 27.2 MW capacity
• It plans on developing the largest offshore wind farm in Asia at a cost of USD 903 mn
The project involves erecting 67 turbines, about 125 metres high, nine kilo‐metres off Hong Kong's eastern coast
• Plans on buying all the wind power generation assets in China currently held by its 50%‐owned unit Roaring 40s
Renewable Energy Pvt. Ltd. for USD 94.2 mn
•PPresence in countries across the world including China, India, Australia, Taiwan and Thailand
i ti th ld i l di Chi I di A t li T i d Th il d
WIND ENERGY ‐ CHINA.PPT 30
31. Domestic Players in the Market (5/12)
Company Snapshot: Huaneng Power
Corporate Information Financial Performance
Revenue Revenue Profit
Headquarters
H d Beijing
B iji
USD mn Profit / Loss USD mn
9,724.0
Founded June 1994 10,000 1,000
8,000 500
6,534.5
Products Power generation 6,000 5,544.3
4,898.2
0
4,000
Peixi Cao – Chairman
Key People 2,000 ‐500
Xiaxia Fan – Director
0 ‐1,000
2005 2006 2007 2008
Business Highlights
Business Highlights
• Huaneng Power International Inc received government approval to build a 199.5 MW wind power project in China's
Gansu province
The total investment amount of the project is estimated to be USD 299 mn
It is one of twenty separate projects with 3 800 MW of combined capacity
It is one of twenty separate projects with 3,800 MW of combined capacity
• Undertook on‐grid operation of a 300,000 KW wind power station in Fuxin, Liaoning Province
It plans to invest more than USD 7.3 bn in the province by 2015
Huaneng plans to have 10 mn kw of installed capacity in operation or under construction by the same timeline
WIND ENERGY ‐ CHINA.PPT 31
32. Domestic Players in the Market (6/12)
Company Snapshot: Shanghai Electric Group Co. Ltd.
Corporate Information Financial Performance
Headquarters
H d t Shanghai
Sh h i Revenue
Revenue Profit
fi
USD bn Profit / Loss USD mn
Founded 1949 10 600
8.5
Mechanical and electrical equipment 8 7.4
Area of Expertise 5.5 400
manufacturer 6 4.4
Shiping Zhou – Chairman 4
200
Key People 2
Ji Sun – CFO
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• It plans on designing China’s largest offshore wind turbine and aims to begin production by June 2010
The 3.6 MW turbine is expected to have turbine blades with a diameter of 116 meters and will each weigh 90 tons
• It plans on boosting its revenue from wind power turbine production to USD 1.46 bn by 2011
• The company currently specializes in manufacturing 1.25‐MW and 2‐MW wind turbines and has two factories in
China, one in Shanghai and the other in Tianjin Municipality
• In 2009 the company has been estimated to manufacture 500 wind turbines, a large increase from 22 in 2007
WIND ENERGY ‐ CHINA.PPT 32
33. Domestic Players in the Market (7/12)
Company Snapshot: Xian Aero Engine PLC
Corporate Information Financial Performance
Revenue
Headquarters
H d Changchun
Ch h Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 1958 800 20
601.0
Precision instruments, gas turbines, wind 600 15
Products 447.9
turbine generators, textile machines, etc
400 10
Ma Fuan– Chairman and President 200 149.1 5
Key People
Liang Wang – Director
0 0
2006 2007 2008
Business Highlights
Business Highlights
• Xi'an aero‐engine PLC won long‐term order from Pratt & Whitney
The contract is valued at USD 85.4 mn for the first seven years of the contract
It will serve as a stable source for the export business of Xi'an Aero‐engine and help Pratt & Whitney secure production capacity
• Th
The company won the "Xi'an Environmental Management advanced unit" title for giving high priority to
th "Xi' E i t lM t d d it" titl f i i hi h i it t
environmental concerns and developing products in line with green ideas
• Recently, its physical and chemical test center successfully passed the quality test of GE’s audit
WIND ENERGY ‐ CHINA.PPT 33
34. Domestic Players in the Market (8/12)
Company Snapshot: China Datang Corporation
Corporate Information Business Highlights
Headquarters
q NA • It is a large scaled power generation enterprise group
g p g p g p
Founded 2002
and is a solely state‐owned corporation directly
managed by the CPC Central Committee
Area of Expertise Power generation • Registered capital stands at USD 2.3 bn
Financials ’08: Revenue – USD 14.9 bn • Began the construction of its fourth wind power plant
in eastern China's Shandong province with capacity of
Key People NA 49.5 MW
Company Snapshot: China Wind Power International Corp.
Corporate Information Business Highlights
Headquarters Toronto, Canada • The Company indirectly holds the exclusive rights for
wind energy development in Du Mon County,
Founded 2006
Heilongjiang Province
Heilongjiang Province
Area of Expertise Wind energy generation
• Currently plans on developing 546 MW of wind
Financials NA generation capacity through 5 development phases
Jun Liu – CEO • Long term target is to develop 1,150 MW of wind
Key People
Wendell Zhang – CFO
g capacity
WIND ENERGY ‐ CHINA.PPT 34
35. Domestic Players in the Market (9/12)
Company Snapshot: Chongqing XinXing Gear Co
Corporate Information Business Highlights
Headquarters Beibei Dist.
Beibei Dist. • Partnered GE Drivetrain Technologies o produce large
g p g
diameter gears for the wind turbine industry
Founded 1993
Under the terms of the joint venture, Chongqing XinXing
Fengneng will be the majority owner
Products Gears
Gears will be produced in a new manufacturing facility in
Financials NA Chongqing, China
Chongqing China
Key People Xingming Li –Chairman
Company Snapshot: Dongfang Electric Corporation
Corporate Information Business Highlights
Headquarters Chengdu • State‐owned corporation
• Plans on boosting output of wind turbines by 50 % in
Founded 1984
2009‐10 to reach its target of making generation
2009 10 t h it t t f ki ti
Products Wind turbine manufacturer equipment for 22,000 MW of power
• In 2008, its production capacity stood at 800 1.5‐
Financials NA
MW units
Key People
Key People NA
WIND ENERGY ‐ CHINA.PPT 35
36. Domestic Players in the Market (10/12)
Company Snapshot: GC China Turbine Corporation
Corporate Information Business Highlights
Headquarters
q Wuhan • Signed a MOU with the Yancheng regional
g g g
Founded 2006 government of Jiangsu province to develop a local
manufacturing base towards building large utility
Manufactures 2‐blade wind turbines,
Area of Expertise scale turbines for offshore and coastal use in the area
hydraulic and electronic control system
• Plan on developing 2 MW and 3 MW two‐blade
Financials NA
turbines for large‐scale onshore and offshore projects
bi f l l h d ff h j
Hou Tie Xin – Chairman in partnership with a research institute in Sweden
Key People
Qi Na – CEO
Company Snapshot: Goldwind Science and Technology Co. Ltd.
Corporate Information Business Highlights
Headquarters Urumqi • Major products include 600 kW, 750 kW, 1.2 MW and
1.5 MW series wind turbine sets
Founded 1998
• I t ll d
Installed a self‐developed 3 MW wind turbine in
lf d l d 3 MW i d t bi i
R&D, product development and
Area of Expertise
manufacturing of large wind turbines
northwestern Xinjiang Uygur Autonomous Region
• Towards expanding its turbine technology, it plans on
Financials NA
investing in local wind farms in Australia
Wu Ganag – Chairman and CEO
Key People
Key People • It plans on developing off shore wind turbines in
It plans on developing off‐shore wind turbines in
Guo Jian – President
2012
WIND ENERGY ‐ CHINA.PPT 36
37. Domestic Players in the Market (11/12)
Company Snapshot: Honiton Energy Group
Corporate Information Business Highlights
Headquarters
q Beijing
j g • China's only independent foreign wind energy
y p g gy
Founded 2004 provider
• In the process of receiving funds from private equity
Area of Expertise Wind turbine manufacturer
firms after securing funding from the International
Financials NA Finance Corporation
Matthew Pollard – Chairman • Partnered with Suzlon towards supplying turbines
Key People
Paul Eveleigh – CEO aggregating to 50 MW
Company Snapshot: Huayi Electric Company Limited
Corporate Information Business Highlights
Headquarters Leqing • Entered into a USD 36.9 mn agreement to deliver
wind turbines to plant in Shanxi Province
Founded 1986
• It
Its subsidiary, Huayi Wind Energy Development Co
b idi H i Wi d E D l tC
Manufacture and sale of high voltage
Area of Expertise electrical appliances and wind power
Ltd, signed a strategic cooperation agreement with
generation equipment the municipal government of Dongying, Shandong
Province, to build a wind turbine manufacturing base
Financials NA
in the city
y
Key People Chen Daorong Investment has been pegged at USD 146.4 mn
WIND ENERGY ‐ CHINA.PPT 37
38. Domestic Players in the Market (12/12)
Company Snapshot: Ningxia Electric Power Group
Corporate Information Business Highlights
Headquarters
q Ningxia
g • The company signed a contract with Nordex for a
p y g
Founded 2003 supply of 33 MW wind turbines
Nordex has installed approximately 120 MW for Ningxia
Wind power, wind turbine and coal Electric Power to date
Area of Expertise
chemicals industry
• Signed CDM agreement with Mitsubishi Heavy
Financials NA Industry (MHI)
I d t (MHI)
Key People NA MHI will buy certified emission reductions (CERs) from
Ningxia Electric Power Group's Taiyang Mountain wind
power farm
Company Snapshot: Sinovel Wind Co. Ltd.
Corporate Information Business Highlights
Headquarters Beijing • Largest wind turbine manufacturer in China
Founded NA • Has four manufacturing bases in Dalian, Jiangsu,
Inner Mongolia and Gansu Provinces
R&D, design, manufacturing and sales of a
Area of Expertise • Received USD 11.3 mn from the National
variety of wind turbines
Financials NA
Development and Reform Commission (NDRC) to
develop offshore wind turbines
Key People
Key People Junliang Han Chairman & President
Junliang Han – Chairman & President I t ll d th fi t 3 MW i d t bi
Installed the first 3 MW wind turbine successfully in the
f ll i th
Shanghai East Sea Bridge's 100 MW offshore wind farm
WIND ENERGY ‐ CHINA.PPT 38
39. Foreign Players in the Market (1/8)
Company Snapshot: Gamesa
Corporate Information Financial Performance
Headquarters Vitoria, Spain
Vitoria Spain Revenue
Revenue Profit
fi
USD bn Profit / Loss USD mn
Founded 1976 5.4
6 500
Engineering, design, manufacture and sale 4.5 400
Area of Expertise 4
of wind turbines 3.0 300
2.2
22
Jorge Calvet Spinatsch – Chairman 200
2
Key People 100
Luis Pardo Lopez – COO
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• In 2008, China accounted for 23% of their total global installations
• Plans on entering in to a joint‐venture with the China Guandong Nuclear Power Group for the development of wind
parks with a combined capacity to generate 250 MW of electricity
This is expected to be developed in northeastern Shandong province
h d b d l d h h d
• Plans on building a facility in the city of Tianjin to make 400 MW of its G8x2 MW turbines annually
• Supplied and installed 295 MW of wind turbines for Longyuan Electric Power Group Corporation
WIND ENERGY ‐ CHINA.PPT 39
40. Foreign Players in the Market (2/8)
Company Snapshot: LM Glassfiber
Corporate Information Financial Performance
Revenue
Headquarters
H d t Kolding, Denmark
K ldi D k Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 1978 1,500 100
1,302.1
Manufacturer of major components of wind 50
Area of Expertise 1,000
turbines such as turbine blades 792.2
596.7 0
Richard Hanson – Chairman 500 412.2
Key People ‐50
Roland Sunden – CEO
0 ‐100
2005 2006 2007 2008
Business Highlights
Business Highlights
• LM Glassfiber has set up factories in Urumqi, the capital city of Xinjiang, and Tianjin
• It plans on expanding its production capacity in China due to strong customer growth and positive outlook for the
local wind market
• The company plans on adding three production lines at its blade factory in Qin Huang Dao, northeastern China
The facilities capacity is scheduled to double in the third quarter of 2010
Investment of USD 43.9 mn has been budgeted for this project
WIND ENERGY ‐ CHINA.PPT 40
41. Foreign Players in the Market (3/8)
Company Snapshot: Nordex AG
Corporate Information Financial Performance
Headquarters
H d t Rostock, Germany
R t k G Revenue
Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 1985 2,000 1,750.7 80
Developers and manufacturers of wind 1,500 60
Area of Expertise 1,105.9
turbines 40
1,000 693.8
693 8
Thomas Richterich – CEO 20
Key People 500 397.3
0
Bernard Schaferbarthold – CFO
0 ‐20
2005 2006 2007 2008
Business Highlights
Business Highlights
• Its Chinese unit received two new orders to supply its 1.5 MW wind turbines to newly projected wind farms
Chinese utility Ningxia Electric Power ordered 22 units of Nordex's multi‐MW turbines, some of them fitted with the 82‐metre rotors
The wind power equipment will be installed in the Sunhill II and Honhgsipu II wind power projects near Yinchuan, central China, with
capacities of 28.5 MW and 4.25 MW respectively
capacities of 28 5 MW and 4 25 MW respectively
Wind power facilities expected to produce 70 GWh of clean electricity annually
• Offers a range of 1.5 MW, 2.3 MW and 2.5 MW wind turbines and offers project services including forecasts, planning,
the licensing procedures and the installation of turnkey wind parks as well as inspection and maintenance
g p , p ,
• Large international presence with more than 3,970 wind turbines with a total rated output of more than 5,400 MW in
34 countries
WIND ENERGY ‐ CHINA.PPT 41
42. Foreign Players in the Market (4/8)
Company Snapshot: Siemens AG
Corporate Information Financial Performance
Revenue
Headquarters
H d t Munich , Germany
M i h G Revenue Profit
fi
USD bn Profit / Loss USD bn
Founded 1847 150 10
113.7
Power generation, transmission and 99.4 8
Area of Expertise 100 94.0
distribution. Manufacturing wind turbines 83.4 6
4
Gerhard Cromme – Chairman 50
Key People 2
Peter Loscher – President and CEO
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• The company plans on partnering with a Chinese company towards manufacturing offshore wind turbines as it is
largely an untapped market in this region
The turbine factory is likely to start production in Shanghai in the middle of 2010
It has been estimated that the Chinese wind sector could fetch the company USD 1 5 bn in sales by 2011
It has been estimated that the Chinese wind sector could fetch the company USD 1.5 bn in sales by 2011
• The enterprise has already formed a steam turbine partnership with local power equipment maker Shanghai Electric
• It plans on selling its "smart grid" technology in China, which involves the installation of communication hardware
and software to power grids to better manage power demand and supply
Recently developed a a new facility to produce rotor blades and nacelles in Lingang New City in Shanghai at an
Recently developed a a new facility to produce rotor blades and nacelles in Lingang New City in Shanghai at an
investment of USD 86.1 mn and is expected to go online by the second half of 2010
WIND ENERGY ‐ CHINA.PPT 42
43. Foreign Players in the Market (5/8)
Company Snapshot: Suzlon
Corporate Information Financial Performance
Revenue
Headquarters
H d Pune, India
P I di Revenue Profit
fi
USD mn Profit / Loss USD mn
Founded 1995 8,000 250
6,022.3 200
Area of Expertise Wind turbine manufacturer 6,000
150
4,000 3,314.4
100
Key People Tulsi R. Tanti – Chairman and MD 1,768.1
2,000 873.8 50
0 0
2005 2006 2007 2008
Business Highlights
Business Highlights
• The world's fifth largest wind turbine maker with a global market share of 10.5%
• Received three orders to supply wind turbines with a combined capacity of 113.75 MW
Its unit, Suzlon Energy (Tianjin) Ltd., will supply turbines to China's Datang International Power Generation Co. and Honiton Energy
Group
G
The unit will supply 39 turbines each with a capacity of 1.25 MW to Datang International by 3Q of the fiscal year through Mar 2010
It will also supply 40 turbines with a total capacity of 50 MW to Honiton
• Secured an order from Inner Mongolia North Longyuan Wind Power Corporation for the supply of wind turbines with
a total capacity of 100 MW
p y
It will provide 80 units of its S64 turbine by 2011 at an investment of USD 111 mn
WIND ENERGY ‐ CHINA.PPT 43