Recently, the National Energy Administration issued1 - 8Monthly national electricity industry statistical data. As of8At the end of the month, the cumulative installed power generation capacity nationwide was approximately31.31000 million kilowatts, a year-on-year increase14.0%Among them, the installed capacity of wind power is about4.71000 million kilowatts, a year-on-year increase19.9%Meanwhile, due to higher gross margins from overseas operations, 'going global' has become an inevitable path for domestic wind turbine manufacturers. What are the advantages for domestic wind turbine manufacturers going global? How is the domestic wind market expected to perform in the second half of this year?
Frost & SullivanFrost & SullivanJia Pang, Partner and Managing Director of Frost & Sullivan's Greater China Region, was interviewed by Securities Daily to discuss the opportunities and challenges for Chinese wind power companies in expanding overseas markets.
Securities Daily
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Q: What are the advantages for domestic wind turbine manufacturers going global?
The main competitive advantages of domestic wind turbine manufacturers in expanding overseas markets are reflected in the following aspects: First, the domestic wind power manufacturing industry chain is complete, with a very high localization rate of components such as main shafts, castings, blades, and towers. The localization and substitution of components like gearboxes, submarine cables, and bearings are also accelerating. Therefore, in terms of supply chain stability and manufacturing costs, domestic wind turbine manufacturers have an advantage over overseas enterprises. Second, China has the largest installed wind power capacity in the world. According to statistics from the National Energy Administration, as of2023At the end of the year, China's wind power installed capacity was approximately4.4kilowatts, accounting for more than40%The vast majority of wind turbines for domestic wind power projects are supplied by domestic wind turbine manufacturers. The successful and stable operation of numerous wind power projects has proven the product quality and technical strength of domestic wind turbine manufacturers. It has also provided valuable operational data and experience for the continuous optimization of technology by these manufacturers. Thirdly, Chinese wind power projects and engineering companies possess globally leading technical strength and project experience, and are actively investing and constructing wind power projects overseas. It is also an important development path for domestic wind turbine manufacturers to go global through Chinese enterprises' overseas wind power projects.
Q: What is the forecast for the domestic wind power market outlook in the second half of this year?
According to statistics from the National Energy Administration, domestically2024year1 - 8The monthly installed capacity of wind power increased by about16.2%The overall development trend has maintained stable growth. Judging from the bidding data of wind power projects, according to incomplete statistics from Windmang Energy,2024In the first half of the year, domestic wind turbine manufacturers won a total of bids366Projects, cumulative70.84 GWFan procurement (including international projects, excluding frame procurement), and2023First half of the year281Total of projects48.6 GWIn comparison, the growth is remarkable, which also indicates that the domestic wind power market will continue to maintain a high level of prosperity in the second half of the year.
Q: What are the opportunities and challenges in the overseas wind power market?
With the good development momentum of energy globally, wind power is one of the most important renewable energy types. Policy support and technological progress in various countries have improved the economic efficiency and reliability of wind power, significantly reducing its costs. Additionally, factors such as international cooperation and investment have greatly enhanced the importance of wind power in the global energy system. In particular, the rapid development of offshore wind technology in recent years has continuously expanded the potential for using global wind resources.
The challenges of the overseas wind power market cannot be ignored. For example, supply chain disruptions, land use, and environmental issues affect project progress. The intermittency of wind energy poses significant challenges to grid management and energy storage. Especially in regions such as Europe and the United States, where grid systems are relatively old, they need to be transformed and upgraded to improve their adaptability to renewable energy sources such as wind power. In some relatively backward areas, grid infrastructure is still underdeveloped and difficult to support the development of wind power.
*This interview has been published in 'Securities Daily', authored by Feng Sijie, with the original title being: 'Rapid Growth in Wind Power Installed Capacity "Chinese wind power companies expand overseas markets".
