Wind power generation game war in-depth interpretation (2)

The Chinese market is the key to success Q: GE and Siemens are sisters in the electrical equipment industry, but the performance of these two companies in the Chinese wind power market is not as good as in the US and European markets. What will be the next step for GE in the Chinese wind power market? idea?

Liu Hong (Renewable Energy Product Manager, GE Energy China): GE entered the Chinese wind power market in 2002 and we are proud to grow with the Chinese market. I agree with the opinions of a few CEOs just now. To become a global leading wind turbine supplier, we must take a corresponding position in China, the world's largest wind power market. In China, in addition to maintaining the traditional advantages of quality and reliability, we must provide better services so that we can have greater competitiveness. In addition to traditional wind turbine sales, we also have some other initiatives. For example, at the end of September, we announced that we entered the wind power industry together with Harbin Harbin Power (01133.HK), and at the same time, we will be doing business on the mainland with wind turbines and offshore wind turbines. We very much want to do something seriously.

Q: At present, the world wind power market is mainly concentrated in China, Europe, and the Americas. So what are the deployments of Sinovel in the future market? At the same time, what do you think about overseas offshore wind market development?

Han Junliang: Sinovel must first succeed in the Chinese market before it can succeed in the world. Of course, if it is not successful in the Americas and Europe, Sinovel is not a global company. This is the strategic goal of Sinovel. Regarding the issue of strategic objectives, Huarui’s future internationalization share will not only reach 30%, but will also move toward the 50% target.

In the future, offshore wind power in Europe must have an explosive development. Europe, including the United Kingdom, Northern Europe, and France, are actively developing offshore wind power on a large scale. We are full of confidence for European offshore wind power. In order to guarantee future services to European customers, Huarui must develop the commercialization of large-scale units. I believe that in the next five years, Sinovel will achieve a rapid growth.

Q: From the perspective of development in recent years, the development of China's wind power market can be said to be rapid progress. The impact on domestic and international companies is self-evident. So what kind of layout do you have in this market? What experience do you share with others?

Ye Kaisen (Jens Olsen, CEO of Ender Energy China): The Chinese market is very important to Ender Energy. Joining the Chinese market can enhance Ender’s ability to compete globally, because China is the most difficult market and the most innovative market.

We are very proud that Ende has created a lot of firsts in China. Ende has been operating in China since 1995 and has so far installed more than 350 wind turbines in China. These wind turbines include Qingdao Warwick Wind Farm, which was financed by German Investment and Development Co., Ltd. (DEG). This was the first wind farm in China at the time and all used megawatt-class fans. At the end of 2006, Ender established Yinde Yinchuan Wind Power Equipment Manufacturing Co., Ltd. in Yinchuan, focusing on the assembly of a 1.5 MW wind turbine nacelle. In addition, Ende also established a blade manufacturing plant in Dongying City in January 2007 to produce 1.5 MW turbine blades. Ender also established an R&D center in China.

The deployment of the Chinese market can enhance the competitiveness of Ender in the global market. If it cannot succeed in China, Ende Energy cannot succeed globally.

Wolfgang Jussen (CEO of Ruineng China): The wind energy industry has developed very well in Europe, especially in Denmark and Germany. There are government programs to stimulate the development of this industry. Ruineng entered China in 2006 and even sent its own engineers to improve product quality. However, we are a little sorry that at the end of 2008, Ruineng also had a 30% market share, but now it only has 15%. This market is expanding continuously. Therefore, we need to determine our business goals in order to better participate in the competition.

If we can do this, we will not be disappointed. Ruineng will find advanced technology to share with China, hoping to make a difference in China, the world's largest market, and hope to gain a place in the Chinese market. I am very optimistic that we combine the mature Chinese market players with Western investment to continue to develop more high-quality renewable energy in China and even to invest and develop renewable energy abroad. The grid will further develop. Goldwind, Huarui Wind Power, and Dongfeng are the three major partners of Ruineng in China. They will share China's industry standards with us and we will benefit from it.

Larry Alberts (CEO of Suzlon Energy Tianjin): In the past five years, China's wind energy market has experienced unprecedented development, and China will soon become the world's largest market for wind energy. In the past five or six years, we have been mainly improving our construction capacity. Today, this construction capacity has reached a peak.

From a global perspective, wind power costs have shown a downward trend. How to transfer our latest technology or even core technology to China is the problem we are currently solving. However, the overall market in China is still unsatisfactory. The main problem is market access. This is an obstacle that we must overcome.