China to Invest More in Offshore Wind Turbine Production

Goldwind, a leading Chinese wind turbine maker, plans to invest more in offshore wind turbine production by reallocating funds originally planned for onshore turbine production.

Goldwind plans to shift 145 million yuan (22 million U.S. dollars) previously planned for a MW-level turbine production base in Nanjing, east China's Jiangsu Province, according to the company.

The money is now planned to go to a production base in Dafeng, a coastal city in Jiangsu Province, said Wu Gang, Goldwind CEO.

Wu said the change of plan accorded with the overall strategy of the company. The new plan has been approved by the board of directors, but needs shareholder approval.

Shi Pengfei, an independent director of Goldwind, said "This shift in investment priority meets with current Chinese market demands and Goldwind's strategic development goals. It is an important move to consolidate Goldwind's position as a major offshore wind turbine producer."

Dafeng turbine base went into operation in 2010 and involves a total investment of 300 million yuan (45.5 million U.S. dollars). When completed, it will have a R&D lab for 3.6MW and 6MW offshore wind turbine production, and an annual turbine production capacity of 450MW.

Development of offshore wind power is expanding rapidly in the country. China is constructing four offshore wind farms in Jiangsu, totaling 1GW. The four projects, announced in 2010, will be finished in four years.

Jiangsu plans to have 4.6GW of offshore wind turbine installed capacity in 2015 and 9.45GW in 2020.

China's first offshore wind farm, Shanghai East Sea Bridge Offshore Wind Farm, comprising of thirty-four 3MW Sinovel made turbines, was connected to the grid in June 2010.

Other offshore wind turbines in operation are: one 1.5MW Goldwind turbine in Liaoning's Bohai Bay Suizhong Offshore Oilfield; and two Mingyang 1.5MW turbines, two Guodian United Power 1.5MW turbines, two Shanghai Electric 2MW turbines, two Envision Energy 1.5MW turbines, and one Sany Electric 2MW turbine in Jiangsu's Rudong Inter-tidal Area.

Coastal wind farms along the country's eastern coast,compared with those in the inland northern and western regions, enjoy better wind energy resources, better grid infrastructure, and more consumers within close proximity.

China has surplus production capacity of onshore wind turbines, compelling wind turbine makers to shift attention to offshore wind turbine production.

According to China Wind Energy Association (CWEA), 18.93GW of wind turbine capacity was installed in the country in 2010, up 37.1 percent from 2009. The country's total wind turbine installed capacity was 44.73GW at the end of 2010, up 73.3 percent from the previous year.

By the end of last year, China had replaced the United States as the largest wind power developer in the world.

Shi, also vice-president of CWEA, said installation of more than 30GW of wind turbine capacity is planned in the country from 2011 to 2012.

China has 200GW of offshore wind energy resources, according to the China Meteorological Administration.

However, Shi cautioned, "China must compare the actual costs of offshore wind power development with the costs of transmitting wind power from the west to the east of China. If the cost is less to transfer wind power from Gansu or Xinjiang to the eastern coastal areas, China should prioritize development of western onshore wind energy resources not offshore capacity in the east."

According to Goldwind's recently released annual report, the company sold 2,567 permanent-magnetic direct-drive 1.5MW turbines in 2010. It is also able to produce 2.5MW permanent-magnetic direct-drive turbines.

So far, Goldwind has five 2.5MW prototypes in trial operation, while it started to develop 6MW turbines in 2010.

Goldwind also supplies turbines to clients overseas. TianRun Shady Oaks, LLC, Goldwind's wholly-funded subsidiary in the United States, won a bid to supply turbines to Shady Oaks Wind Farm in Illinois for 20 years from 2012. Goldwind will also supply 34 units of 1.5MW turbines to Adama Wind Farm in Ethiopia, 21 units of 1.5MW turbines to Alexigros Wind Farm in Cyprus, and 70 units of MW-level turbines to Gullen Range project in Australia.

By the end of 2010, Goldwind had 2,764.5MW of wind turbine orders in hand. They comprised 2,7165MW of 1.5MW turbines, 45MW of 2.5MW turbines, and 3MW of 3.0MW turbines.

Goldwind also had 3,815.5MW of wind turbine orders, though those contracts had not been signed by the end of last year. They comprised 2,112MW of 1.5MW turbines, 1,697.5MW of 2.5MW turbines, and 6MW of 3MW turbines.