Danish Wind Energy Group China
Newsletter August & September 2016
Welcome New Member︱Events︱Case Story︱Wind Dynamics︱Our Members
Welcome New Member
Martin Bencher International Transportation (Shanghai) Ltd
Martin Bencher Group is a Scandinavian based shipping and freight forwarding company.
The company was originally founded in the UK in 1881 and throughout its history the name
has always been synonymous with superior shipping services on a global scale.
The company transport all kinds of cargo and specialize in the handling projects and
oversized/ heavy cargo.
Martin Bencher Group has three offices in China, including Shanghai, Qingdao and Guangzhou
- total of 20 dedicated and enthusiastic employees ready to serve the customers.
More and more sophisticated equipment is being made in China, Martin Bencher can help with
almost any requirement the customer may have.
www.martin-bencher.com
DWEG China Newsletter, August & September 2016
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Previous Event
DWEG China Networking Visit to
Nanjing Wind Power Technology & Nanjing ZhongRen Energy Technology
July 6th, 2016
DWEG China organized a group trip to Nanjing, Jiangsu Province
on July 6th, visiting two Wind Turbine Manufacturers including
Nanjing Wind Power Technology Co., Ltd and Nanjing ZhongRen
Energy Technology Co., Ltd.
Thirteen participants from DWEG China member companies joined
the visit, including ELPRESS Electrical Components., Resolux,
Nissens Cooling System, Hove A/S, Megatrade Beslag, MitaTeknik, FT Technologies, NMF Mechanical Production, Fritz Schur
Energy, Danfoss Automatic Controls and Lund & Sorensen Electric
Heating Equipment Accessory.
Relying on two
R&D centers both in Nanjing and Aarhus,
with more than 100 R&D team members,
Nanjing Wind Power applies pitch-regulated,
variable-speed, doubly-fed or hybrid
technology to develop onshore, intertidal and
offshore wind turbines with independent
intelligent property. Focusing on IV wind
class which lacks of wind resource, Nanjing
Wind Power provides special low speed wind
turbines in the Chinese market.
ZhongRen Energy engaged in the high quality products with
technical innovation. It has developed and produced ZR2.0MW,
ZR3.0MW wind turbine units, adopting medium-speed drive
technology, which has the advantage of efficient power
generation, high reliability and low cost.
All the participants from Nanjing Wind Power Technology &
Nanjing ZhongRen Energy Technology were very interested in
the experienced onshore and offshore Wind technology from
Denmark. During the visit, the Danish delegates shared their
experience and knowledge in the onshore and offshore Wind
market both in China and in Denmark. Both sides believe that
there is a huge potentiality in the future cooperation.
Upcoming Event
DWEG China Annual General Meeting and Networking Dinner
October 18 , 2016
Annual General Meeting of DWEG China will be held in connection with CWP. Afterwards,
Networking dinner will be held, in which the guests of Chinese OEM and developers, and the
Danish member companies will be invited. The event is expected to cooperate with the Royal
Danish Embassy in Beijing.
Time: 16.00 – 20.00, Tuesday, Oct. 18th, 2016 ( to be confirmed)
Venue: Crown Plaza Beijing Airport Hotel (to be confirmed)
Agenda and invitation will be distributed by separate mails.
---------------------------------------------------------------------------------------------Danish Pavilion at CWP 2016
October 19 – 21, 2016
Danish Pavilion will be open at CWP during Oct. 19 – 21. Please look into the details by
http://www.dwea.dk/activities/dwea-china-wind-power-2016_1218/
DWEG China Newsletter, August & September 2016
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---------------------------------------------------------------------------------------------Offshore Wind Business Delegation Trip - Jiangsu and Shanghai
October 23 – 26, 2016
DWEG China will organize offshore wind business delegation’s trip, to meet the decision makers
of major offshore wind turbine manufacturers, R&D Institute and offshore wind farm owners in
the area of Shanghai and Jiangsu Province, including
Shanghai Electric/Shanghai Investigation, Design & Research Institute
Envision Energy China /Longyuan Power Group Jiangsu/Gold Wind Dafeng
Offshore Wind Industry Base
Agenda and invitation will be forwarded by separate mails.
Exhibition Information
The 9th China (Jiangsu) International Wind Power Development Forum Invitation
2016第九届中国（江苏）国际风电产业发展高峰论坛邀请函
Date: Sep. 9th-10th, 2016
Venue: Nanjing, Jiangsu
For any interest, please contact DWEG China for the details including agenda.
Prosales Training Course – Nov. 28-29, 2016
Danish Export Association will organize training course for Chinese sales staff of DMOG China
and DWEG China.
Time: November 28 - 29, 2016
Venue: Danish Export Association Shanghai Representative Office
Trainer: Mr. Jeffery Tong, Senior Business Consultant, Mercuri International Group
Language: Chinese
Topic: Sales Negotiation Skills - Improving sales person’s ability in concluding winwin deals with customer by using the right negotiation chips and negotiation
tactics
Invitation and detailed arrangement will be forwarded by separate mails. The course will go
ahead with min. 12 persons.
DWEG China Newsletter, August & September 2016
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Case Story
Martin Bencher—Providing Superior Shipping Services Globally
Martin Bencher Group is a Scandinavian based shipping and freight forwarding company. We transport all kinds of cargo and specialize in the handling of projects and oversized/heavy cargo from many different industries. From paper mills,
power plants, and oil and gas projects to wind turbines and luxury yachts, Martin Bencher Group can handle the
transportation.
The company was originally founded in the UK in 1881 and throughout its history the name has always been synonymous with superior
shipping services on a global scale. In 1997, Martin Bencher (Scandinavia) A/S was founded in Denmark by Mr. Peter Thorsoe Jensen and
Mr. Bo H. Drewsen, offering freight forwarding and shipping services mainly to Scandinavian customers. The main business is transportation
of project cargo to China.
Martin Bencher Group is involved in project shipments all over the world. The majority
of the cargo we handle is shipped on container- and heavy lift vessels, but from time
to time the cargo is urgent and airfreight services are needed. All Martin Bencher offices
have the necessary expertise and know-how to handle both sea-freight and airfreight
shipments.
With head office in Aarhus, Denmark, the Group has its own network of twenty-four
local offices in nineteen countries around the world and a strong network of trusted
partners in most other strategically important locations. Our +140 employees are ready
to create competitive solutions tailored to your needs.
To ensure successful handling of a project, there must be adequate KNOWLEDGE, CAPACITY and FLEXIBILITY. This we understand at
Martin Bencher and our organization is built to meet exactly these requirements on a global scale.
Martin Bencher Group services:
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Engineering and project management
General Freight Forwarding
Shipping / Vessel Chartering
Airfreight services
Cargo handling and technical supervision
Inland services
Port and Agency services
Martin Bencher group are represented in China, in Shanghai, Guangzhou and Qingdao with 24 employees operating daily on challenging
complex project transportations, especially within the Renewable Wind Energy sector.
Sources from Martin Bencher
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DWEG China Newsletter, August & September 2016
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ELPRESS DUAL CRIMP SYSTEM – MEETING IEC DEMANDS, ALSO IN SEVERE WORKING CONDITIONS.
Elpress is globally leading manufacturer of crimping technology. With almost 60 years of experience, we
produce terminals and crimping tools for Low-, Medium- and High- voltage application, ranging from
small electronic control cables to HV cables and Over-head lines. Elpress has developed specific crimping
solutions for industrial demands, be it within the Wind-power, Traction, Power Generation or the OGP field. We meet the specification given
to us by our client’s and we also lead the development of new products, as with our latest innovation, the Elpress patented DUAL-system
technology. At Elpress we work with strong and lasting connections, both with our products and with our clients.
Tough environments
Making a safe crimp termination or connection of electric conductors is simple from a
practical point of view. But it calls for a certain degree of insight as to the relevant
requirements and what components and tools that should be used.
Tools and terminals/connectors must of course be chosen from a crimp system, i.e. a specific
proven combination of crimp geometry and connector element that goes with the conductor
in question. The system performance must be secured by means of tests to established
standards.
With these general rules one can rest reasonably sure that “normal” power connection
crimps will work satisfactory also when the net is fully utilised.
In some applications one or several especially hard influences may make the working life of the connection more difficult than usual. Take
for example flexible conductor crimp connections in the environment that often occur in Wind power applications In this case one can list
at least the following possibly harmful factors.

High current density peaks with resulting high temperatures and temperature gradients
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Dynamic and static mechanical loads (vibrations and movements)
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Severe corrosion exposures from salt (off-shore), chemical substances, gases, etc.

Temperature variations
To meet such influences it is important to balance the design of the crimp system in such a way that a connection is reached which is as
gas tight as possible, without having a deformation of the strands in the conductor that may jeopardise the mechanical strength.
A new, advanced solution
Elpress AB, a Swedish crimp system producer, has recently introduced a development of the state of the art crimp technology to offer a
solution, the Dual System Crimp, to the problems touched upon above, especially relevant to flexible conductors. It takes its starting point
in a hexagonal crimp, which is optimised to give the best possible crimp reduction. By using this geometry one comes closest possible to
an all-round deformation and thereby the lowest possible relative individual deformation to an individual strand. This may however result
in too few or too small gas tight contact surfaces from strand to strand and from the outer strands to the terminal barrel.
Just when the crimp is closed but
before the dies is retracted, the
copper cross section between the
dies is in yield state and an
additional deformation does not
have to deform the material
elastically before additional plastic
deformation is achieved. The Dual
System
crimp
adds
such
deformation by means of a small
indent that is made into one of the
hexagonal crimp surfaces before
the dies are separated. The effect
of this indent is surprisingly
significant due to this two-steps-inone sequence and results in the creation of additional and larger contact surfaces. In terms of enhanced properties dramatically better
resistance to corrosion is reached, while high pullout forces and resistance to vibrations are maintained or increased.
Crimp tools
DWEG China Newsletter, August & September 2016
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The crimp tools developed to perform Dual System crimps are very close to the standard
tools. This means that the same hydraulic pumps can be used and the Dual crimp heads
can also take all conventional dies.
Working with the Dual System is the same as when working with a conventional crimp.
This is also the case regarding the inspection after crimp, where crimp Quality controls
are simple to take and where die size and make can be seen directly from the imprints
left by the dies on the crimp surface.
Summary
Crimps in some applications, e.g. Wind turbines and Trains, are subject to hard work conditions. A new crimp technique, the Dual System,
has been developed by Elpress AB, Sweden, where a double sequence crimping and tools to perform it, results in much better properties.
Tests to prove this has been made and documented with regard to electrical, corrosion as well as mechanical (static and dynamic) tests.
Elpress AB is well aware of the importance of the Chinese market, and have thus established own company in Beijing, to service their
existing and coming clients in this market. More information can be requested from: ELPRESS (Beijing) Electrical Components Co.,
Sources from ELPRESS
Wind Dynamics
Market Statistic & Policy
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China's wind power conundrum
Technology, infrastructure and planning roadblocks are hamstringing China’s renewables revolution.
As a clean, relatively cheap and reliable alternative to burning fossil fuels, wind power plays an important role in China’s energy mix. Given
concerns about the country’s dependence on imported petroleum and about the serious air pollution caused by burning coal, the mandate
to shift from fossil fuels never has been stronger.
The urgency is reflected in China’s ambitious target under its Intended Nationally Determined Contribution to supply 20 percent of electricity
from renewable energy resources by 2030.
China’s track record on renewables already is impressive. The country installed nearly half of all new global wind capacity in 2015, adding
30.8 gigawatts (GW) (PDF) (other sources show 30.5 GW) for a total capacity exceeding 145 GW . (See Figure 1.)
China also is the largest investor (PDF) in renewable energy, spending $102.9 billion in 2015 alone. Forty-three percent of these investments
specifically have targeted wind power.
Figure 1. Wind Power Cumulative Capacity and Annual Additions, by Country, 2015. Source: REN21, Renewables 2016 Global Status Report.
DWEG China Newsletter, August & September 2016
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Yet China fails to take full advantage of its extensive wind power resources. According to the central government, 33.9 GW of windgenerated electricity went unused in 2015 alone — representing nearly 15 percent of total wind energy generated, valued at $2.77 billion.
The scale of this waste is enormous, equivalent to the annual electricity consumption of 3 million American households and greater than
the United Kingdom’s total wind power generation in 2015. Perhaps most striking, although China nearly has doubled the installed wind
generation capacity of the United States (145.1 GW versus 75.0 GW), actual Chinese generation is less than U.S. generation (186.3 terawatthours [TWh] versus 190.9 TWh).
This wasted energy reflects not only sunk investment and foregone economic benefit, but also a missed opportunity to fight climate change.
Wind power in China has the potential to offset billions of kilowatt-hours of electricity generated by fossil fuels, such as coal, that produce
substantial greenhouse gas emissions.
With these obvious benefits in mind, what headwinds is China facing?
Slowing economic growth
In 2015, China’s gross domestic product (GDP) grew at the slowest rate in 25 years, a trend reflected in the country’s flatlining power
demand. According to the National Energy Administration, total electricity consumption in 2015 was 55,500 TWh, an increase of only 0.5
percent from the previous year. This increase is 3.3 percentage points below the 2014 level and reflects the lowest growth since 1974.
Meanwhile, siginficant new wind power capacity was added in 2015 under the expectation of continued strong economic growth and power
demand — resulting in an oversupply.
A growing energy infrastructure gap
Inconsistencies between national and provincial governance of the energy sector is sapping China’s electricity infrastructure.
Prior to 2011, provincial governments were permitted to approve all wind power projects smaller than 50 megawatts. Embracing newly
affordable wind technologies, local power producers applied rapidly for generation permits, most of which were below this cap. Provincial
governments were happy to approve these 49.5 MW power projects to attract investment and improve provincial GDP performance. Taken
together, however, these small-scale plants rapidly have overwhelmed China’s electrical grid infrastructure.
Responding to this challenge, the central government (Chinese) changed permitting regulations in 2016, expanding national regulatory
oversight to all new provincial wind power additions.
Xie Guohui, an analyst at the State Grid Energy Research Institute, said, "Even though China will not approve new projects, the scale of
existing wind power installations is huge, leaving the grid struggling to cope with it." And a professor from Xiamen University noted, "The
main cause of idling turbines is an overcapacity in China’s power generation. China’s power supply currently surpasses its demand by 20
to 25 percent." (See Figure 2.)
Figure 2. China Wind Power Installed Capacity versus Grid-Connected Capacity, 2006–14. Source: Xi Lu et al., Challenges faced by China
compared with the U.S. in developing wind power.
Infrastructure considerations also are important because of the disparities between where Chinese wind energy is generated and where it
is needed. Northern China provides nearly 80 percent of the total wind generation. (See Figure 3.)
However, consumption of electricity is heavily concentrated along the coast and in the South. In 2014, an estimated 47 percent of wind
power curtailment (Chinese) was caused by limited ability to consume it in Gansu province. Simply put, most Chinese wind energy has to
DWEG China Newsletter, August & September 2016
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travel a long way to reach a sufficiently large market for electricity. Although some transmission lines exist, new wind installations quickly
have outpaced infrastructure additions.
Figure 3. Wind Power Installed Capacity by Province, 2014
Disconnect between provincial and national governance in China
In China, coal plants are still the main source of electricity (see Figure 4), and the central government still maintains guaranteed quotas
for coal-fired electricity generation. Meanwhile, there are no mandatory quota regulations on regional grids to integrate wind-powered
electricity, leaving renewable energy struggling to compete. That said, the Renewable Energy Law, issued in 2005, "requires local
governments and state-run power grid operators to buy all electricity produced by a firm using renewable sources that fall within the
government quota," said Yang Fuqiang.
Figure 4. Electric Generating Capacity by Fuel Type, 2000–13. Source: The Energy Collective, China’s Electrcity Sector at a Glance: 2013
For local governments, coal-fired plants are still more important than wind power because they are the primary source of tax revenue and
employment. As a result, national laws and regulations often are unpredictable and are poorly communicated by provincial authorities.
DWEG China Newsletter, August & September 2016
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On March 31, the Chinese Wind Energy Association accused three provincial governments of adopting policies that violated the Renewable
Energy Law:
Authorities in Yunnan province issued a policy in November that slapped an extra surcharge on wind and hydropower producers and used
the revenue to subsidize coal-fired plants.
The Xinjiang Provincial Government not only squeezed the production quotas of wind, solar and hydropower producers, but also levied an
extra fee on them and used this revenue to subsidize coal-fired power plants in December.
The Gansu Provincial government cut the price paid to wind power producers per watt by 40 to 75 percent from the state-run operator of
the local grid.
China’s wind policy forecast
According to Haibing Ma, China Program Manager at the Worldwatch Institute, "Current policies can only solve the curtailment problem to
a limited extent. The more important thing is electricity market reform."
Wind power development is not simply a question of capacity building, but also reflects the need for a comprehensive plan and policy
implementation. Although China’s ambitions to develop renewable energy are admirable, it also is important to identify the problems and
challenges associated with this transition and to apply the lessons learned in the next stage of development.
Curtailment likely will be a short-term problem, as wind power is essential for China to achieve its INDC target under the 2015 Paris
Agreement on climate change. And electricity reform is being hotly debated in the country. Therefore, the Chinese government needs to
move fast, both centrally and locally, and private sectors need to adjust to a new relationship between energy supply and consumption.
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Wind at China’s back to amp up its renewables
China can tap just 10 percent of its wind resources to supply more than a quarter of its electricity by 2030, significantly boosting the global
transition to renewable energy, according to an MIT study.
Only 3 percent of China’s power comes from wind today. But if China, which is heavily dependent on coal for its electrical power, continues
its feverish wind farm construction boom by building turbines closer to the power grid, the country could theoretically supply 26 percent of
its power with wind within 15 years, according to a study published this week in the journal Nature Energy.
The study used computer models that simulate China’s power grid operations
under different scenarios to project how wind power could be distributed
throughout the country through 2030.
“This would go a long way toward meeting China’s climate goal of delivering 20
percent of the nation’s primary energy from non-fossil fuels by 2030 — part of
China’s Paris climate pledge,” said study co-author Valerie Karplus, an assistant
professor of global economics at MIT.
China is the world’s leading carbon dioxide emitter and largest consumer of coal
for electric power generation, but it’s also leading the world in wind farm
construction, in part to help reduce greenhouse gas emissions.
Meeting the world’s goal to keep global warming from exceeding 2°C (3.6°F) is impossible without China cutting its greenhouse gas
emissions and weaning itself away from coal. As China transitions from an industrial economy to a more service-oriented one, electricity
demand and coal use there is falling — so much so that the China’s carbon emissions could peak by 2030.
“Wind energy for the most part displaces coal-fired power in China, hence overall emissions will go down significantly,” said study lead
author Michael Roy Davidson, a researcher at MIT’s China Energy and Climate Project.
Though China built more wind turbines than any other country last year, it remains the world’s second-largest wind power producer,
generating 185.1 megawatt hours of wind power — just under the 190 million megawatt hours of wind power the U.S. generated in 2015.
China’s total annual wind resources — the electricity that could be produced from all the breezes blowing across its land and waters if it
could be fully harnessed — are about 26 million gigawatt hours — or roughly 26 times the electricity India consumes in a year. The study
shows that China’s wind farms may be able to harness 10 percent of that wind power potential by the end of the next decade, when total
electricity demand is expected to be 10 million gigawatt hours.
DWEG China Newsletter, August & September 2016
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But China has a problem with its wind power boom — its wind farms have been generally concentrated in remote areas that are among
the windiest but not necessarily closest to the electric power grid, which was designed mainly for coal-fired power plants near cities.
The study shows that if wind farms were constructed closer to the existing grid but
not necessarily in the windiest areas, wind power could be produced more efficiently
and can supply more and more of China’s electricity if effectively integrated into the
existing grid.
Some big policy changes in China may be needed for that to happen, however. The
study shows that one of the biggest reforms needed is to reverse a policy requiring
a minimum amount of electricity production from coal-fired power plants as a way
to ensure the plants are profitable. Reducing the amount of power that coal plants
are required to produce would name room for more wind.
“To integrate 10 percent of this (wind) potential in China requires significant
electricity system reform,” said study co-author Da Zhang, a researcher at MIT’s China Energy and Climate Project.
Greater electric power policy changes are needed for China to harness more than 10 percent of its wind power resources, including
expanding the existing power grid and managing the grid more effectively so coal plants can more easily accommodate the intermittency
of wind, Karplus said.
Wind’s intermittency — its tendency to suddenly become calm or gusty — is difficult for grids built for coal-fired plants to handle because
coal plants take a lot of time to bring online when winds drop, or draw down when winds are gusty. Mark Z. Jacobson, a civil and
environmental engineering professor focusing on renewables and climate change at Stanford University who is unaffiliated with the study,
said the study is the first to analyze both China’s wind power resources and its ability to integrate that power into the existing electric grid.
China is likely to obtain more of its electricity from wind power as the country’s transportation system uses more electricity and less fossil
fuel, increasing the demand for electrical power — including wind — easing its integration onto the grid, he said.
“I believe the goal of 26 percent of power into the electric grid coming from wind by 2030 is a very modest and doable goal,” Jacobson
said. “I anticipate higher penetration by then.”
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China seeks more offshore wind power
China’s Hebei Iron and Steel Group’s Wuyang Iron & Steel recently supplied 1,000 tonnes of steel to the Jiangsu Dongtai offshore wind
power project, according to local media. Chinese offshore wind power development has been slower than expected so far, despite ambitious
government targets, as reported in KallanishSteel, sister publication of Kallanish Energy.
The 200,000 kilowatts project started construction in July last year and Wuyang will supply 3,445t of steel for platform legs. The project
was only approved in 2013 after two years of argument with the government over electricity prices. There are around 100,000 kW of wind
power projects that are currently awaiting approval.
China had hoped to build 5 million kW of offshore wind power projects during the 12th
five-year plan from 2010-2015. But according to NBS data, it only had 750,000 kW
capacity at the end of 2015. Because of technological difficulties and high construction
costs, offshore power costs are 50% higher than onshore wind power at $0.12/kilowatt
hour.
In the 13th five year plan from 2016-2020, China plans to reach 10m kW capacity of
offshore wind power by the end of 2020. Beijing will have to provide significant support
to wind power developers to achieve this goal.
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Turbine OEM & Components Supplier
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Goldwind seals deal for renewables hub in China’s Hebei
Chinese wind turbine maker Xinjiang Goldwind Science & Technology plans to set up a
renewable energy industry hub in Hebei province’s city of Zhangjiakou, the firm said.
The company will work on the project under a strategic cooperation agreement with the
municipal government and the local economic development zone, according to a
DWEG China Newsletter, August & September 2016
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press statement. The scheme will pave the way for the coordinated utilisation of the huge renewables potential in the Beijing-Tianjin-Hebei
national capital region of China, known as Jing-Jin-Ji (JJJ), Goldwind said.
The demonstration base will be used to showcase various aspects of both the upstream and downstream segments. It will cover everything
from equipment production, environmental impact and microgrid application research and development (R&D) to photovoltaic (PV) and
agriculture complementary projects, environmental protection and public trainings.
The contract was inked on June 18 in the northwestern prefecture-level city of Tangshan.
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Siemens-Gamesa merger creates larger breakbulk shipper of wind farm cargo
The new company will have the world’s largest market share in wind power
manufacturing, surpassing China’s Goldwind and Denmark’s Vestas.
The merger of Germany’s Siemens and Spain’s Gamesa into the world’s biggest builder
of wind farms is the latest in a series of mergers and acquisitions in a sector that has
become a top source of project cargo shipments.
Siemens agreed to pay 1 billion euros ($1.13 billion) for a 59 percent majority stake in
the combined company. The deal meshes Siemens’ strength in offshore wind power
with Gamesa’s leading position in developing markets. “Although some degree of
cannibalization is to be expected as the two companies unite their wind businesses,
the new combined venture will indeed surface as a leading global wind turbine
manufacturer in terms of annual installation volumes,” said Magnus Dale, senior analyst of European power, gas, coal and renewables at
IHS Energy.
The merger follows other industry consolidation, including the merger of Nordex and Acciona Windpower, which was approved in January,
and GE.
The new company will have the world’s largest market share in wind power manufacturing, surpassing China’s Goldwind and Denmark’s
Vestas. Combined turbine installations of Siemens and Gamesa in 2015 would yield 8.1 million gigawatts in 34 markets globally, according
to IHS Energy, which, like JOC, is a part of IHS Markit.
The Siemens-Gamesa venture’s installations last year would rank slightly ahead of Goldwind, but the new company will have much broader
coverage than the Chinese company, which remains almost fully dependent on its home market for sales. Vestas had 7.4 million GW of
installations in 34 countries last year.
Siemens’ wind power business has a strong position in North America and northern Europe. Gamesa is strongest in fast-growing emerging
markets such as India and Latin America, and southern Europe.
A key unanswered question following the Siemens-Gamesa deal is what will happen with Adwen, the offshore wind joint venture that
Gamesa currently owns with Areva. Options include Areva taking full ownership of the venture, the new Siemens-Gamesa JV taking full
ownership, or the JV being sold to a third party. GE has been reported to have shown interest in Adwen, but already has secured access
to offshore wind technology through its recent takeover of Alstom’s grid and power business.
The Siemens-Gamesa deal will produce a company with 69 GW of installed capacity, revenue of 9,3 billion euros ($10.5 billion), and an
order backlog of about 20 billion euros ($22.6 billion).
The new company will have its legal domicile, global headquarters and onshore headquarters in Spain, and its offshore wind headquarters
in Germany and Denmark.
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Ramboll to tackle complex Chinese seabed
Danish engineering firm Ramboll has won the contract to design a 400MW offshore wind project in China, becoming the first non-Chinese
company to do so.
Ramboll will design the steel foundations for the 400MW Chinese offshore project
The €4 million contract includes the design of 100 steel foundations, plus a substation complete with transformers, breakers and cables,
the firm said.
The 400MW SPIC Binhai North Phase 2 offshore project is being developed by state-owned investment holding company State Power
Investment Corporation. Ramboll is carrying out the design work on behalf of Huadong Engineering Corporation.
DWEG China Newsletter, August & September 2016
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SPIC's project will be located 22 kilometres off the Jiangsu coast in eastern China.
Ramboll said the project site is in an earthquake-prone area with soft soil.
"The seabed consists of deposits washed out by the large rivers, which poses a
high risk of soil liquefaction. This puts unique demands on the design and
construction of the foundations that will be placed 60-metres below the seabed,
in order to support the turbines in depths of 14-18 metres," Ramboll said.
Phase 1 of the project is currently under construction, and first power is expected
by the end of 2016, Ramboll said.
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Wind Farms
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Hands Said to Negotiate Wind Farm Sale to China State Giant
Hands, picked state-owned power generator China Huadian Corp. as the preferred
bidder for its U.K. wind farm business.
The private equity firm is in discussions to sell Infinis Energy Plc’s wind-farm
operations to Huadian for about $500 million, according to the people, who
asked not to be identified because the information is private. Huadian is currently
assessing the impact of the Brexit vote on the Infinis business, and there’s no
certainty it will proceed with a transaction, one of the people said.
Chinese President Xi Jinping has sought to cut pollution and spur investment in
non-fossil fuels. Companies from the world’s second-largest economy have
announced about $5.1 billion of overseas alternative energy acquisitions in the past
year, up 47 percent from the prior 12 months, data compiled by Bloomberg show.
State-owned China Three Gorges said last month it will buy control of German wind farm operator WindMW GmbH from Blackstone
Group LP. Huadian agreed in 2014 to purchase Gamesa Corp. Tecnologica SA’s 28-megawatt wind farm in Cuenca, Spain, for an
undisclosed amount.
Terra Firma first invested in Infinis in 2003 through its purchase of landfill operator Waste Recycling Group Plc. It then grew the business
through a series of bolt-on acquisitions before listing it on the London stock exchange in November 2013. Terra Firma then repurchased
the outstanding shares of Infinis in an October 2015 deal valuing the company at 555 million pounds ($717 million), or about 30
percent less than what it was worth at its listing.
Infinis currently operates 16 U.K. onshore wind farms with a total installed capacity of 274 megawatts, with another 170 megawatts in
development, according to the company’s website. Any deal with Huadian would not include Infinis’s landfill gas unit, which Terra Firma
is selling separately, the people said.
A spokesman for Terra Firma declined to comment, while a spokesman for Infinis didn’t respond to e-mailed questions. A Beijing-based
spokesman for Huadian didn’t immediately respond to e-mails seeking comment.
Huadian’s main business generates more than 200 billion yuan ($29.9 billion) of annual revenue, according to its website. The stateowned electricity producer holds stakes in seven listed companies including Huadian Fuxin Energy Corp., which owns renewable power
projects in China including wind farms and hydropower plants, according to the website.
The group’s main listed arm is Huadian Power International Corp., which trades in Hong Kong and Shanghai with a market value of about
$6.8 billion.
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China hopes to build a $50 trillion global wind and solar power grid by 2050
By 2050, China hopes to lead efforts to build a $50 trillion global wind and solar power grid that would completely change how the world
is powered.
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The Global Energy Interconnection (GEI) project was first introduced by the State Grid Corporation of China (SGCC) last year. Liu Zhenya,
the SGCC chairman, expounded on the project during a visit earlier this
month to Switzerland to meet with the heads of the ABB Group and the
World Business Council for Sustainable Development.
According to the World Economic Forum, the project won't just be about
connecting countries' energy grids, but actually generating enough
power to run the world. China hopes to connect wind farms in the Arctic
Circle with solar farms located on the Equator, in a system that will
transcend national boundaries and provide clean energy everywhere.
Liu argues that the GEI is the best option if renewable sources of energy, like solar and wind, are ever going to become a practical
alternative to burning dirty fossil fuels. According to the SGCC, if renewable energy generation is increased at an annual rate of 12.4%
worldwide each year, then by 2050 renewable energy could account for 80% of the world's total energy consumption.
The GEI project is divided into three major stages. From now until 2020, it will focus on the promotion of clean energy development,
domestic grid interconnection and smart grid construction in countries across the world. By 2030, planners hope to connect grids
between countries and build large energy bases. Then, in 2050, the emphasis will switch to creating polar and equatorial energy bases,
concentrating new energy generation technologies in those areas where they can do the most good.
Take a look at this World Economic Forum video introducing China's GEI project:
While the project might seem far-fetched and far off in the future, China is currently working on some other daring ideas to generate
more clean energy. In a few years, Shenzhen will be home to the world's largest waste-to-energy plant. Shortly after that, China hopes
to be providing energy to its disputed islands in the South China Sea via a fleet of floating nuclear power plants.
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EDF acquires Chinese developer
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French developer EDF Energies Nouvelles (EDF EN) has acquired an 80% stake in
Chinese wind developer UPC Asia Wind Management (UPC AWM) in what EDF called
a first major move by a European wind developer into China.
EDF said following the acquisition, its global operating wind portfolio exceeds 10GW
UPC AWM's wind portfolio in China totals 1.3GW of capacity either in operation,
under construction or in development, according to EDF EN.
EDF EN said China was a priority market for the group, having been active in the
Chinese nuclear, thermal and hydro markets for 30 years.
"The Chinese government aims to reach 200GW in installed wind energy capacity by 2020, an average increase of 15GW per year," EDF
EN said.
US-based investment firm Global Environment Fund holds the remaining 20% of UPC AWM.
This is EDF EN's second wind developer acquisition in Asia this year. In January, the group acquired a 50% stake in Sitac Wind
Management and Development in India with a view to installing 142MW in India by the end of 2016, with a further 220MW in 2017-18.
China installed nearly half the world's new wind turbines in 2015, an extraordinary performance prompted in part by developers pushing
forward projects in order to avoid reduced feed-in tariffs coming into force this year.
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Chinese Duo Buys Majority Share in Meerwind Sü d|Ost OWF
China Yangtze Power and China Three Gorges Corporation have teamed up to buy a
majority stake in WindMW GmbH, the owner and operator of the 288MW Meerwind
Süd|Ost offshore wind farm.
The two companies have, through their subsidiaries, agreed to purchase a 100% stake
in BCP Meerwind Luxembourg, a company which, through its wholly owned subsidiary,
BCP Meerwind Germany GmbH, controls an 80% stake in WindMW, for EUR 645.4
million.
BCP Meerwind Luxembourg is a wholly-owned subsidiary of BCP Meerwind Cayman Limited, which is a unit of Blackstone.
Blackstone revealed that the company intends to sell its stake in WindMW to China Three Gorges in June 2016.
China Yangtze Power International (Hong Kong), the wholly owned subsidiary of China Yangtze Power, and China Three Gorges
(Europe), the wholly owned subsidiary of China Three Gorges Corporation, will control 30% and 70% of BCP Meerwind Luxembourg
respectively after the transaction is complete.
WindMW was set up as a joint-venture company between Blackstone Group (80%) and Windland Energieerzeugungs GmbH (20%).
WindMW GmbH was responsible for the planning and construction of Meerwind Süd|Ost and is now operating the wind farm located in
the German part of the North Sea.
The Meerwind offshore wind farm is located south-west of the Danish-German border. It consists of 80 Siemens 3.6MW wind turbines
and has been operational since January 2015.
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Fujian Southeast Shipbuilding to Build Five WFSVs
China’s Fujian Southeast Shipbuilding Co. has signed a contract for the
construction of five wind farm support vessels which once delivered will serve
offshore wind farms off Fujian province.
The five WFSVs were reportedly ordered by Fujian Ship Investment Company.
The twin-hull WFSVs will have a maximum speed of up to 15 knots.
The vessels will have an autonomy of 300 nautical miles under a full load.
Fujian Province is home to some of China’s biggest offshore wind projects
including the 400MW Longyuan Putian Nanri Island wind farm off the city of
Putian which Longyuan Power Group Corp is currently constructing. The wind
farm is expected to be commissioned in 2018.
China is currently planning to install 10GW of offshore wind energy before the end of 2020.
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Ezion, Sinotrans Form Chinese Offshore Wind Company
Ezion Holdings and Sinotrans & CSC Holdings have established a new
company, Sinomarine & Teras Offshore Co., Ltd, dedicated to the offshore wind
industry in China.
The opening ceremony was held in Tianjin, China, on 28 June and was
attended by guests from the Chinese government, officials from the Tianjin
Dongjiang Free Trade Port Area, Chinese Port Authorities, IE Singapore, power
generation companies, banks, as well as senior representatives from both Ezion
Holdings Limited and Sinotrans & CSC Holdings.
Ezion said the establishment of the new company is a key development for the Group followingthe announcement in December
2015 that Ezion had entered into a strategic cooperation agreement with a Chinese state-owned enterprise, China Huadian Corporation,
to support offshore wind power installation projects in China.
The newly created Sinomarine & Teras Offshore Co., Ltd has signed a strategic cooperation agreement on 28 June with China Huadian
Corporation to support offshore wind power installation projects in China and expects to operate two Service Rigs for an offshore wind
farm installation project by the end of 2016, according to Ezion.
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Chinese Offshore Wind Farm Hooked to the Grid
The 50MW Fujian Putian City Flat Bay offshore wind farm in the Strait of Taiwan has been
connected to the grid and fully commissioned this summer.
Fujian Putian City Flat Bay is the first wind farm in China with 5 MW wind turbines.
It consists of 10, 5MW XE/DD128 wind turbines from XEMC Windpower Co. Ltd., a Chinese
supplier of multi-megawatt wind turbines.
ABB supplied the medium-voltage wind turbine converters for XEMC’s turbines now installed
at the Fujian wind farm.
Further 250MW and 600MW Fujian Putian City Flat Bay offshore wind farms are currently in the planning or pre-construction phase.
With a cumulative offshore wind capacity of about 1GW in 2015, of which about 360MW were installed in 2015 alone, China will quickly
catch up with the UK, Germany and Denmark if it continues at this rate, according to Marco Thoma, ABB’s Head of Global Sales and
Marketing for Medium Voltage Converters.
Even though today China still produces more than 70 percent of its electricity from coal, it is estimated that by 2030, about one-fifth of its
primary energy needs will be generated from renewable energy sources. Already, China is one of the world’s leading wind energy
producers, Thoma said.
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Source from Wind Power Monthly, China Daily & NEA
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Contact
Angela Zhang
Head of Danish Wind Energy Group China
[email protected]
Tel: +86 21 6279 2090
Fax: +86 21 6279 0561
Address: Rm 1703, 1277 Beijing Xi Rd,
Shanghai
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