Domestic wind power manufacturing sector in China
The State Electricity Regulatory Commission has released stricter technical regulations, especially for low-voltage ride-through (LVRT) reformation. Additionally, 18 industry standards were released in November last year by the National Bureau of Energy.
F&S states there are two immediate effects of the regulatory changes. Adding LVRT capability will increase the cost of the Chinese turbines. This, coupled with slower demand, will lead to a squeezing out of the marginal producers, who cannot afford to fit new equipment.
Thus, the domestic wind power manufacturing sector in China is poised for tough times, and consolidation may even change the positioning of the top five players.
Bakhareva explains that the windmill power industry in established markets has moved beyond the frenzied initial stage, where the emphasis was placed on the maximum number of turbines installed.
The focus is now on increasing operating effi- ciency, resolving performance issues rapidly, having real-time control and visibility, and reduc- ing the maintenance time. Providing a compelling turbine generator service solution is nearly as important as supplying best-in-class equipment, she says.
Quality after-sales services can easily add a few percentage points in efficiency gains, which result in a lower levelised cost of electricity. The Chinese wind turbines manufacturers can undoubtedly deliver a cheaper wind turbine, which means lower capital expenditure; however, when an entire package is considered, they are still behind their Western counterparts.
