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Cost and electricity prices constrain the development of offshore wind power

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Cost and electricity prices constrain the development of offshore wind power

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  • Time of issue:2013-09-30 15:47
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(Summary description)China's first-tier wind power equipment companies are gearing up to grab a bigger slice of the pie as the National Energy Administration (NEA) announced it will start bidding for the second batch of offshore wind concession projects in the second half of this year. Goldwind, which won the 200MW project in Jiangsu Dafeng in the first offshore concession last year, said it won "at least more than the first bid". It is understood that, unlike the first batch of offshore wind concession projects last year, a single development scale of 200,000-300,000 kW, the second batch of single project scale may reach 500,000 kW or even higher, opening the prelude to the large-scale development of domestic offshore wind power. "For onshore wind, motors account for 64 percent of the construction cost, while for offshore wind, motors account for about 45 percent of the cost." Cui Xinwei, chief engineer of Goldwind Technology, told reporters that compared with onshore wind power, infrastructure investment such as grid connection, installation and support structure accounts for too much of the total cost of offshore wind power construction, so the upsizing of offshore units can reduce such costs appropriately and improve the economic benefits of offshore wind power. "It is imperative to scale up wind turbines, and 6-MEGAwatt units will be the mainstream of offshore wind power in the future," he said. It is understood that sinovel's 6MW offshore fan has been off the production line, while Goldwind's 6MW direct-driven permanent magnet fan prototype will be connected to the grid in the first half of 2012, and mass production will begin in 2014. "United Power's 3-MEGAwatt offshore wind turbine will roll off the production line this year and its 6-megawatt offshore wind turbine will roll off the production line next year." Guodian united power chief engineer Wang Zhiqiang told reporters. He believes that 3 MEGAwatts will become the mainstream of offshore wind power in the coming period, and 6 megawatts should become the mainstream around 2016. Like onshore wind, the price of offshore power is a headache for wind companies. It is reported that the minimum bid price for the first batch of offshore wind concession projects in 2010 was 0.6235 yuan/KWH, which is close to the onshore wind price. Previously, it was widely believed that the reasonable price for offshore wind power should be above 0.9 yuan/KWH. "In 2010, companies were underquoting and it was very difficult for operators to make a profit." "Said one industry insider. A wind power equipment supplier even said that at present, we can only sell equipment for offshore wind power, and dare not invest in the electric field, because it is too risky. In response, industry insiders have called for wind power companies not to undercut prices to compete fiercely and eat up the industry's profit margins. "If the electricity price is very low, every link of the upstream and downstream industries will be squeezed, which means that the high-capacity offshore wind turbine industry will face the pressure of cost when it is just starting and still needs a large amount of investment, which may directly affect the reliability of the product." "Said Zhou Tong, director of strategy and planning at Goldwind.

Cost and electricity prices constrain the development of offshore wind power

(Summary description)China's first-tier wind power equipment companies are gearing up to grab a bigger slice of the pie as the National Energy Administration (NEA) announced it will start bidding for the second batch of offshore wind concession projects in the second half of this year.

Goldwind, which won the 200MW project in Jiangsu Dafeng in the first offshore concession last year, said it won "at least more than the first bid". It is understood that, unlike the first batch of offshore wind concession projects last year, a single development scale of 200,000-300,000 kW, the second batch of single project scale may reach 500,000 kW or even higher, opening the prelude to the large-scale development of domestic offshore wind power.

"For onshore wind, motors account for 64 percent of the construction cost, while for offshore wind, motors account for about 45 percent of the cost." Cui Xinwei, chief engineer of Goldwind Technology, told reporters that compared with onshore wind power, infrastructure investment such as grid connection, installation and support structure accounts for too much of the total cost of offshore wind power construction, so the upsizing of offshore units can reduce such costs appropriately and improve the economic benefits of offshore wind power. "It is imperative to scale up wind turbines, and 6-MEGAwatt units will be the mainstream of offshore wind power in the future," he said.

It is understood that sinovel's 6MW offshore fan has been off the production line, while Goldwind's 6MW direct-driven permanent magnet fan prototype will be connected to the grid in the first half of 2012, and mass production will begin in 2014. "United Power's 3-MEGAwatt offshore wind turbine will roll off the production line this year and its 6-megawatt offshore wind turbine will roll off the production line next year." Guodian united power chief engineer Wang Zhiqiang told reporters. He believes that 3 MEGAwatts will become the mainstream of offshore wind power in the coming period, and 6 megawatts should become the mainstream around 2016.

Like onshore wind, the price of offshore power is a headache for wind companies.

It is reported that the minimum bid price for the first batch of offshore wind concession projects in 2010 was 0.6235 yuan/KWH, which is close to the onshore wind price. Previously, it was widely believed that the reasonable price for offshore wind power should be above 0.9 yuan/KWH.

"In 2010, companies were underquoting and it was very difficult for operators to make a profit." "Said one industry insider. A wind power equipment supplier even said that at present, we can only sell equipment for offshore wind power, and dare not invest in the electric field, because it is too risky.

In response, industry insiders have called for wind power companies not to undercut prices to compete fiercely and eat up the industry's profit margins. "If the electricity price is very low, every link of the upstream and downstream industries will be squeezed, which means that the high-capacity offshore wind turbine industry will face the pressure of cost when it is just starting and still needs a large amount of investment, which may directly affect the reliability of the product." "Said Zhou Tong, director of strategy and planning at Goldwind.

  • Categories:News
  • Author:
  • Origin:
  • Time of issue:2013-09-30 15:47
  • Views:
Information

China's first-tier wind power equipment companies are gearing up to grab a bigger slice of the pie as the National Energy Administration (NEA) announced it will start bidding for the second batch of offshore wind concession projects in the second half of this year.

Goldwind, which won the 200MW project in Jiangsu Dafeng in the first offshore concession last year, said it won "at least more than the first bid". It is understood that, unlike the first batch of offshore wind concession projects last year, a single development scale of 200,000-300,000 kW, the second batch of single project scale may reach 500,000 kW or even higher, opening the prelude to the large-scale development of domestic offshore wind power.

"For onshore wind, motors account for 64 percent of the construction cost, while for offshore wind, motors account for about 45 percent of the cost." Cui Xinwei, chief engineer of Goldwind Technology, told reporters that compared with onshore wind power, infrastructure investment such as grid connection, installation and support structure accounts for too much of the total cost of offshore wind power construction, so the upsizing of offshore units can reduce such costs appropriately and improve the economic benefits of offshore wind power. "It is imperative to scale up wind turbines, and 6-MEGAwatt units will be the mainstream of offshore wind power in the future," he said.

It is understood that sinovel's 6MW offshore fan has been off the production line, while Goldwind's 6MW direct-driven permanent magnet fan prototype will be connected to the grid in the first half of 2012, and mass production will begin in 2014. "United Power's 3-MEGAwatt offshore wind turbine will roll off the production line this year and its 6-megawatt offshore wind turbine will roll off the production line next year." Guodian united power chief engineer Wang Zhiqiang told reporters. He believes that 3 MEGAwatts will become the mainstream of offshore wind power in the coming period, and 6 megawatts should become the mainstream around 2016.

Like onshore wind, the price of offshore power is a headache for wind companies.

It is reported that the minimum bid price for the first batch of offshore wind concession projects in 2010 was 0.6235 yuan/KWH, which is close to the onshore wind price. Previously, it was widely believed that the reasonable price for offshore wind power should be above 0.9 yuan/KWH.

"In 2010, companies were underquoting and it was very difficult for operators to make a profit." "Said one industry insider. A wind power equipment supplier even said that at present, we can only sell equipment for offshore wind power, and dare not invest in the electric field, because it is too risky.

In response, industry insiders have called for wind power companies not to undercut prices to compete fiercely and eat up the industry's profit margins. "If the electricity price is very low, every link of the upstream and downstream industries will be squeezed, which means that the high-capacity offshore wind turbine industry will face the pressure of cost when it is just starting and still needs a large amount of investment, which may directly affect the reliability of the product." "Said Zhou Tong, director of strategy and planning at Goldwind.

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