Wind Power Generation Game Wars Deep Interpretation (3)

The cooperation will be the mainstream. Q: As the largest wind power component manufacturer in China, what are your requirements for complete machine companies in the industry chain?

Zhang Dingjin (Chairman of China Composite Materials Group Co., Ltd.): China's wind power has evolved from rapid development to stable development in recent years and should be considered mature. I very much agree with the views of Han Junliang and Wu Gang that it is entirely possible that China’s wind power installed capacity will exceed 300 million kilowatts by 2020. Five years ago, nobody thought that wind power would develop so fast, but in the future, as long as the technology allows, I think 300 million kilowatts is still a conservative figure.

The cooperation between the part-partners and the complete machine manufacturers is a matter of great concern to everyone. As a part-sales company, we are still very good with domestic large companies, because the hosting company is leading us forward. They have a lot of new requirements, and they must meet these requirements so that the industry can continue to grow. Everyone should not complain, but first do their own thing well. Only by doing their own thing can we really make this industry develop healthily.

Q: Goldwind Technology has just been successfully listed in Hong Kong. How does the investor and financial industry see our wind power industry?

Wuhan Iron and Steel: This time, Goldwind has achieved better results in listing in Hong Kong and raised nearly 8.2 billion Hong Kong dollars. To achieve such a good result, we feel that it is not entirely about how well companies do, but that investors are optimistic about the prospects of the Chinese economy and are very confident of the new energy industry in China, especially the wind power industry. What investors are worried about is the continuity of the policy, the grid connection, and the quality of the product.

From an investment point of view, wind power is a long-distance running project, and investment income can only be realized in the next 20 to 25 years. In such a process, product quality is very important. We ensure the interests of investors through technological innovation and quality improvement.

Judging from the current electricity price, it should be said that the return on investment of investors is still relatively good, basically reaching 15% to 18%, and some will be higher. Such a good return on investment is to control investment risks. This task falls on our manufacturing industry. The biggest investment risk of a wind power project is product quality. Our shoulders are very heavy.

Q: What does Shanghai Electric think about the development of offshore wind power technology, and where is the difficulty involved? Does Shanghai Electric have any response measures to meet this difficult task?

Fu Xinping: Shanghai Electric is a traditional thermal power equipment manufacturing company. Compared with the leading companies in wind power, we started a bit late, but we are now making independent research and development, core design technologies, and building the main supply chain of wind turbines as the next of Shanghai Electric. The development focus of the stage. Offshore wind power will be the key breakthrough for Shanghai Electric in the next phase, and it will gradually expand its market share. We are advancing international cooperation to deepen our own accumulation of thermal power. In the next few years, we will go faster in offshore wind power.

Q: For multinational corporations, there is such a development issue - more attention is paid to manufacturing in China. Why do you make changes in strategy or market planning?

Chadley: Five years ago we just planted a seed on the Chinese soil. Now we want to turn R&D into reality, and at the same time sell our products. We know the needs of our customers in the Chinese market. In this respect we have done very well and have been very successful.

Q: What are your views on the global wind power market in the next two years?

Larry Alberts: There are some major driving factors in Asia and China. We certainly think that Asian countries including China have great potential. We do have many opportunities in Asia. Asia's protectionism is not so intense. There are protectionist practices in some European countries and the United States. From my personal perspective, talking about the trade deficit is very unfavorable for Chinese companies. It is not easy to overcome these difficulties, so we must consider the issue of market access. Market access is also a problem in Europe, the United States, and elsewhere. It is hoped that China will have a transparent market access mechanism.

How far is China's technology from the world? Q: The characteristics of the internationalization of equipment manufacturing are becoming more and more obvious. Parts and components are no exception. How do you see the international market competition for parts and components?

Zhang Dingjin: Internationalization is actually a problem that all companies will face. As a component supplier, we have been following this path. We will go out together with the domestic machine manufacturers. We are going through this process. In addition, we are now matching our current products with foreign machine manufacturers, including 3 MW products. I think China's spare parts manufacturing industry is still very competitive. I believe that Chinese companies will do better.

Q: In 2004, Ruineng made the first 5 MW fan, which opened the curtain for the manufacture of large-scale wind turbines. Most companies are now following up. Is the large-scale development a trend of market demand and technology development, or is it a technology show?

Wolfgang Zassen: The Swiss company did install a particularly large wind turbine that was needed in the deep sea. This technology is very important and has taken a big step forward. There are new technological breakthroughs that can make large wind turbines. This is a very complicated project.

Our equipment is mainly to adapt to the complicated maritime conditions in the North Sea. Such a huge fan can overcome the harsh environment at sea. The 6 MW wind turbine is really useful and the order is already full.

I hope that our technology will be more mature in the next decade. By 2015, the EU will be able to establish a very independent European energy environment that requires us to continuously invest in innovation. Ruineng engineers are working on these tasks. This is not a show. This is a technical innovation that really solves the problem. Now that offshore wind energy development in Asia has just begun, it is now time to bring such a wind turbine to China.

Q: Sany Group is a company that advocates innovation and survival. What advice do you have for our later wind turbine manufacturers and component suppliers?

Wu Jialiang: As a latecomer to catch up with the front companies, the core value concept is to innovate because the wind power industry is a relatively high threshold industry.

After 20 years of development, Sany Group has a relatively strong power and has enough funds to do this. We have invested more than 2 billion yuan in the production of the whole machine. This money can build a factory that can produce 300,000 cars. It is impossible for ordinary companies to be able to make this investment. If they cannot cross the threshold, they will be eliminated.

China's technological level has greatly improved. How far is China's technology from the world? I think it's not too far away, and some of them are already in line.