The rapid development of China's wind power industry faces downstream bottlenecks such as “difficulties in grid integration” and currently faces a new test from the upstream manufacturing industry.

The vicious market competition caused by severe overcapacity in the wind power equipment industry is evolving into a "treachy" price war. A number of industry sources interviewed by reporters said that China's wind power equipment industry will enter the era of "big wave Esha".

Status Quo: Wind Power Installation Costs Down by Thousand Yuan

With the intensification of the price war of wind power equipment, the unit cost of wind power is showing a substantial decline. The reporter recently learned from investigations in Inner Mongolia, Liaoning, Hebei, and Guangdong that the current average price of wind turbines has dropped by nearly 1,000 yuan/kilowatt compared with the same period in 2009.

“Our wind power development in Mengdong area started late, but it caught up with the opportunity period of the equipment market change.” Ma Yugang, general manager of Huaneng Tongliao Wind Power Co., Ltd., told the reporter, “When building Baolongshan wind farm in 2008, the unit The average cost is 9,250 yuan/kw; in the construction of the Zhurihe wind farm project in 2009, the unit cost can be controlled below 9,000 yuan/kw; currently it is expected to drop to 8,000 yuan/kw.

It is understood that, in spite of many constraints such as “difficulties in grid connection”, investors’ enthusiasm for wind power development has increased even more. One of the important reasons is that the cost of wind power units has been greatly reduced. Unlike developers, wind power equipment manufacturers have expressed deep anxiety about the ever-increasing price war.

Liu Dongyuan, the general manager of Guodian United Power Technology Co., Ltd., called it “the face of cake collective suicide”. He said that in the past two years, the market price war has been in full swing, the domestic prices of wind turbine equipment have fallen steadily, and the profit margin is being severely reduced.

“In order to fight the market, the price war between wind power equipment companies has been 'blooded'.” Zou Changning, marketing director of Xiangdian Wind Energy Co., Ltd., warned that since last year, a considerable number of equipment manufacturers have suffered losses; There is a chance that there will be a large area of ​​collapse. In order to survive, some "manufacturers" may not be transformed into "developers", that is, from the wind power equipment manufacturing to the development of wind farms.

As a leading company in China's wind power equipment manufacturing industry, Goldwind also feels the tremendous pressure brought by the price war. Jinfeng Science and Technology Chairman Wu Gang even used the term "treasure" to describe the market competition of the fan manufacturing industry. “Although I always believe that the survival of the fittest is the inevitable law of market competition, proper normal competition will promote the healthy development of the industry. However, the current price war has evolved into a suicidal vicious competition, which will bring bad for the entire manufacturing industry. as a result of."

Wuhan Iron and Steel Analysis said that the increasingly fierce "price war" is an abnormal competition behavior that violates the economic laws, and the result will disrupt the normal market order and affect the healthy development of the wind power industry.

Reason: Low-end overcapacity leads to vicious competition

Analyzing the reasons for the price war in the wind power equipment market, the industry invariably pointed to the “overcapacity” and “low-end excess capacity”.

Once upon a time, the “green renewable energy” wind power industry, which was fully supported by the country, has attracted intensive attention from all sectors of society. The state-owned capital of railways, aerospace, and weapons industries has entered the business in large numbers. Privately-owned capital such as mining, car repair, and air-conditioning has also been squeezed in to make gold, and the number of wind power equipment companies has increased dramatically.

Data show that in 2004, China's wind power machine manufacturers only 6; as of the end of 2009, the machine manufacturers have grown to nearly 90. There are 57 companies that have prototypes, and about 30 companies have installed more than 100 machines each year. In addition, there are more than 100 wind power equipment component manufacturers and more than 50 blade manufacturers.

As early as the beginning of 2009, Shi Lishan, deputy director of the New Energy and Renewable Energy Division of the National Energy Administration, issued an appeal to the industry to “beware of overheated investment in wind power equipment manufacturing.” In late September of the same year, the State Council approved the National Development and Reform Commission, etc. The "Notice on Suppressing Some Industries' Overcapacity and Duplicate Construction and Guiding the Healthy Development of Industries" reported by the department more clearly pointed out: We must strictly control the blind expansion of production capacity of wind power equipment.

“Although the speed of wind power industry development in China is the first in the world, the expansion of wind power equipment production capacity far exceeds the demand of the industry. Therefore, the price war is inevitable.” Shi Lishan stood in the perspective of industry development and said, “The price war is The result of market competition, but we hope to be an orderly competition rather than a disorderly vicious competition."

In an interview with reporters, Vestas, an international giant of wind power equipment, expressed concern about the price war in the Chinese market. However, this person also believes that at present, China's market competition basically belongs to the low-end production capacity competition. Because, except for the stronger companies such as Goldwind, Sinovel, and Dongqi, the vast majority of wind turbine manufacturers only use the technology transfer method of foreign countries to assemble the whole machine and do not have strong competitiveness; Companies are reluctant to transfer first-rate technologies to others. This is why Vestas is still increasing its investment in the Chinese market.

"Big wave Etao, the price war will accelerate the reshuffle of China's wind power equipment industry." Through the price war, "Wuxi", Wuhan Iron and Steel in-depth analysis believes that "on the one hand, the current price war on the excess of low-end production capacity, competition As a result, some small-scale, low-end manufacturing companies without core technologies and R&D strength will be eliminated; on the Other hand, in the high-end technology sector, the market space is still large, and therefore, relying on independent research and development capabilities and brand advantages, To seize the commanding heights of technology, this is Goldwind's magic weapon to get rid of the current price competition to win the market."

Way Out: Decide on the Domestic Market to Expand Overseas Space

In the face of price war, where is China's wind power equipment manufacturing? Industry insiders pointed out: "From a long-term perspective, China's wind power equipment manufacturers should dig up excess capacity by tapping both domestic and foreign markets."

"Compared to the overcapacity in the traditional industries such as steel and cement, the overcapacity of domestic wind power equipment should be said to be a relative surplus." Bohai Securities researcher Li Xinqu believes that, on the one hand, it is relatively limited by the power grid bottleneck, and wind power consumption is insufficient. The rapid development of the wind power industry; on the other hand, although wind power installed capacity is growing rapidly, wind power development prospects are still very broad relative to China’s wind energy resources.

Qin Haiyan, secretary general of the China Wind Power Industry Association, appealed that the relevant state departments should adopt market-based measures as soon as possible to guide the orderly development of China's wind power industry, such as establishing an industry access system as soon as possible, improving the entry barrier for manufacturing of whole machine, etc.; The manufacturers "go out" to participate in international market competition.

According to statistics, in the past 30 years, the global installed capacity of wind power has maintained an annual growth rate of 20%. With the gradual release of new energy policies in various countries, the demand for wind turbines in the international market will be three to four times that of the domestic market. The annual demand for international wind power equipment is expected to be 50 million kilowatts this year. “This is undoubtedly an attractive cake.” Han Shuwang, deputy dean of China Academy of Launch Vehicle Technology and chairman of China Aerospace Wanyuan International Group Co., Ltd., said that “when Chinese wind power equipment manufacturers actively participate in the competition in the domestic market, they must Accelerate the participation in the international market competition and expand the larger and broader space for survival and development."

The voice from the international market shows that Chinese wind power equipment companies with independent innovation capabilities --- Goldwind Technologies, Sinovel Wind Power and Dongfang Electric --- are stepping up the pace of "going out." A survey by the Danish consultancy BTM stated that although Vestas Denmark and GE are still holding the top two of the global wind turbine suppliers, Chinese companies are catching up. China's Huarui Wind Power, Goldwind Technology and Dongfang Electric have all ranked among the top 10 in the industry, while Chinese companies are actively competing in the export market.

Sinovel, currently ranked third in the world, exported 10 sets of 1.5 MW wind turbines to India in 2009 and purchased electrical systems from American Superconductors in March this year for its own research and development of 5 MW. Wind turbine use. Han Junliang, chairman of Sinovel Wind, said with ambitious attitude that "the company plans to export this large-capacity wind turbine in the future."

Goldwind has invested 71.2 million euros in the acquisition of a 70% stake in Germany's VENSYS Energy Co., Ltd. as early as two years ago, and established a production base in Germany, becoming the first domestic company to have fully independent R&D design capabilities and complete independent intellectual property rights. Wind power machine manufacturers, and thus obtained a license for Chinese wind power products to enter the international market. Last year, Goldwind also established a subsidiary in Australia and set up a subsidiary in the United States this year. According to foreign sources, the establishment of Goldwind's Chicago subsidiary announced that the Chinese company has started to attack the US market dominated by General Electric.

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