Wind taken out of turbine sales

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Technology upgrade

Some leading Chinese equipment makers that have gained an edge in the market are now stepping up efforts to improve the technology in order to fend off the effects of radical expansion in the wind power industry.

Sinovel Wind Group Co, which has the largest share in the domestic wind power equipment market, is one of them. The company is now building a national offshore wind power technology and equipment research and development (R&D) center, which was approved by the National Energy Administration in January.

The center will conduct studies into technical difficulties challenging offshore wind power development in China. Sinovel aims to develop the center into a world leader.

Sinovel started construction of a manufacturing base for its 5-MW wind turbine in Yancheng city in Jiangsu province in January. The project, with a total investment of 1.5 billion yuan, is expected to come on stream at the end of this year. It will involve the production of 5-MW offshore and near-shore wind turbines.

"Improvement in technology is vital to our future," said Han Junliang, president of Sinovel. "The Chinese wind power industry is in urgent need of advanced technology."

At present among the 70 domestic wind power equipment producers, less than 10 have a large-scale R&D capacity. These companies will form the mainstream of the domestic wind power industry, according to Han.

"As for Sinovel, we aim to become among the world's top three in three years," said Han. Last year the company produced 2,400 1.5-MW turbines and 100 3-MW turbines, making it top in terms of output in China.

"I think the so-called overcapacity just refers to those small players with outdated technology. There will be more consolidation in the domestic wind power sector," he said.

Echoing Han's views, Wu Gang, chairman of Goldwind Science & Technology Ltd, another top wind turbine manufacturer in China, said his company would consider acquiring small firms when the industry enters a consolidation phase.

The company is also looking at markets in the US, Australia, Central Europe and Africa, either by investing in local wind farms or by selling products, said Wu.

"We expect overseas markets to account for 20 to 30 percent of our business over the next three to five years," he said. Goldwind is also focusing more on developing larger wind turbines, including 3- and 5-MW wind turbines, he added

Today Chinese wind turbine producers account for around 70 percent of the domestic market. Some foreign companies are now offering more tailor-made technology to the market in order to achieve further success.

Vestas, the world's leading wind energy company, unveiled a new turbine tailored for the Chinese market, the V60-850 kilowatt turbine, last year. It received its first order for the product from China Datang Renewable Power Co last December.

"China is a unique country with great variations in geography and weather conditions," said Jens Tommerup, president of Vestas China.

"This is why we developed a wind turbine which can deal with such challenges. The fact that Datang has chosen the V60-850 kilowatt shows the need for reliable and proven technology to ensure maximum productivity and a scientific approach to harness the most value out of the wind."

China recently dropped a rule stipulating that more than 70 percent of the wind turbines used in the country must be made domestically. Analysts said the move would trigger more competition in the industry.

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