Fan manufacturing companies ramp up resources

In the same way, wind turbine manufacturing companies have climbed up the resources, and who has won the largest share? What will be the impact of the upcoming wind power adjustment policy?

A few years ago, after the national wind power strategy began to accelerate, traditional power generation giants set off a multi-round rim movement. From the northwest to the customs, and then to the coast, the current level of wind power, which is represented by the southern region, has undergone many rounds of fierce competition. In the case where resources are increasingly highlighted by their scarcity, as previously mentioned, along with traditional power giants, wind turbine manufacturing companies have also joined the ranks of wind resources. - Of course, the latter is more committed to farming.

In March, Huayi Electric, a private enterprise in Zhejiang, released its 2010 annual report, which confirmed that the company’s “resource-for-market (order)” business strategy “has achieved phased results”. In May 2010, Huayi Electric transferred its 85.5% equity interest in Inner Mongolia Sansheng Wind Power Co., Ltd. and Huasheng Wind Energy Co., Ltd. (a wholly owned subsidiary), which it held, to 4.5% stake in Sansheng Wind Power, to Huadian New Energy. The total transaction price is RMB 16.2 million.

At that time, Sansheng Wind Farm was still under construction. Huayi Electric believes that the transfer of equity represents a good start for the company's “resource-for-market” wind power business strategy. “We can focus our resources on expanding the existing wind power equipment manufacturing, promoting the company’s wind power equipment sales, and reducing the company’s operating risks. At the same time, the transfer contract also stipulated that Sansheng Wind Power will purchase a total of 66 wind turbines of 1.5 MW produced by Huayi Wind Power in Phase I and Phase II projects of Sansheng Wind Farm, including 33 wind turbines The use of 33 wind turbines.

It is not difficult to see from the total installed capacity of about 100,000 kilowatts in the two phases that Sansheng Wind Farm was just divided into two projects of 50,000 kilowatts or less – exactly the same as the current local government approval ceiling. As a private enterprise in Zhejiang whose annual sales of wind turbine equipment is about 1 billion yuan, Huayi wind power can only be ranked in the third tier in the current fan market. It is also eager to push downstream orders through upstream resources.

In addition to Sansheng Wind Farm, Huayi Electric continued to “ride” in Heilongjiang, Jilin, Ningxia and Shandong. Among them, in the Dongying project in Shandong, Huayi Electric obtained a 50 MW wind farm resource for development and construction last year according to the agreement with the local government. According to the announcement, Zhejiang Huayi Wind Energy Development Co., Ltd. will establish a wind turbine equipment manufacturing base in Dongying City with a total investment of approximately RMB 1 billion, and will mainly produce 1.5MW, 2.5MW/3MW wind turbines and related products. The two parties agreed that under the precondition of sufficient wind farm resources provided by the Dongying Municipal Government, Zhejiang Huayi will complete the total investment within three years and the annual production capacity will reach over 800MW.

According to research reports of GF Securities and Xiangcai Securities, Huayi Electric has held more than 2 million kilowatts of wind resources or priority development rights in the form of “resources for markets” and “investment for markets”. The leading gold wind technology that uses blower enterprises to build ventilation electric fields has just exceeded 2 million kilowatts. When interviewed by our correspondents, Wang Haibo, Vice President of Goldwind Technologies, emphasized that “Goldwind has conducted exploration and development of wind resources in the country in an all-round way.” However, he declined to disclose specific data on the resources of the wind.

A person in charge of a wind turbine company in Beijing also holds a secrecy attitude toward the company's current wind resources. “How much wind resources are mastered has become the core competitiveness of wind turbine companies and is therefore highly confidential. As a listed company, as long as it is not included in the information that must be disclosed, the data will be exaggerated through other channels.” In fact, 2 million kilowatts is already a very impressive figure. Goldwind should have no problem, and Huayi Electric cannot judge it.

In the planning and development of the country’s 70 million kilowatt-class wind power base, private wind turbine manufacturing companies were not able to locate these wind resources due to factors such as starting time, scale, and qualifications. Therefore, the energetic specialization could not be included in the national plan. The rest of the wind resource surplus areas have become the subject of the title.

“With the increasing scarcity of high-quality wind resources, the southern region has become a new focus area.” Shi Pengfei, vice chairman of the China Wind Energy Committee of the China Renewable Energy Society, told Energy magazine, “No matter how the project approval management changes, The competition for wind resources is still the focus of both the owners and equipment manufacturers, and local governments are certainly willing to approve.The current benchmark electricity price of 0.61 yuan is still higher than thermal power, which is equivalent to adding one wind farm in one place, which is the people of the whole country. Pay the bill."

Dong Xiaoxu, general manager of Sany Electric Southwest Branch, told Energy magazine that Yunnan alone could develop more than 10 million kilowatts of wind resources. At present, Sany Electric owns Li Zijing and Maonuping two wind power projects in Yunnan, with installed capacity of 49,500 kilowatts. The former owner is Zhongshui Consultant and the latter is Huadian Nujiang Development Company. However, these two projects are directly from the hands of the owners to obtain orders, in the face of the rich wind resources in the southwest, whether to invest it from the local government in exchange for the current "inconclusive."

The wrestling around the wind resources has benefited wind turbine manufacturers. In addition to winning orders, the investment in wind farms is also very substantial. From the Goldwind annual report data, it can be seen that in 2010, Beijing Tianrun New Energy Investment Co., Ltd., which is responsible for wind power development and sales, achieved sales revenue of RMB 184 million. Another subsidiary, Goldwind Investment Holdings Co., Ltd. realized sales revenue of 1045.14. Ten thousand yuan.

However, for wind turbine companies in the second and third tiers, wind resources are only a bargaining chip for the company’s wind power products. Take Huayi Wind Power's Inner Mongolia Sansheng Wind Farm as an example. If Huayi Electric invests in the company itself, it needs to invest at least RMB 500 million in capital, and the investment recovery period is long, which obviously makes it unbearable. Huayi Electric Director General Jiang Fujun had previously publicly stated that it is the company's “alternative strategy” to transfer the company’s ownership of wind farm resources in return for sales of the company’s wind turbine equipment.

“The gold wind itself started as a developer background. For many years in the industry, their development and utilization of wind resources has become one of the main operations.” Shi Pengfei believes that unlike gold winds, some domestic two or three teams Fan manufacturers are often more keen to enter the upper reaches of the wind resources, on the one hand is to directly pull sales data. What's more, proper development and operation of some wind farms can make their products accumulate operating performance. "Now that the wind turbine manufacturing competition is so fierce, it will be very difficult for the new entrants to sell themselves. To get the owners to purchase your machines, first of all depends on your operating performance." Shi Pengfei said.

It is rumored that the wind power industry adjustment policy to be introduced in May will have a significant impact on the battle for wind resources as the main battlefield. In January of this year, a newly-installed capacity of wind power was planned to be 15 million kilowatts in a document issued by the National Development and Reform Commission. This is a sign of appropriate tightening this year.

“Actually, the industry already has a certain pre-judgment and preparation for this. There are not as many installations on the Internet, and the approval will not be returned (the Energy Bureau). At that time, the development and reform commission will set 15 million, and the local government will give you 20 million yuan. It will also cause a large area to be abandoned. “Wind phenomenon.” Shi Pengfei said, “But there is little impact on the competitive landscape of the overall wind turbine. After all, the main determinant factor is still to be able to obtain the affirmation of the quality of wind turbines used by the operating owners.”