Lower labor costs mean Goldwind can sell its turbines cheaper than many foreign competitors. "But we don't want to be seen as competing solely on price," says Eric de Vrij, international business director at the company. "We have the quality for export markets."
Ding Jianping, marketing manager at Zhejiang Windey, says his firm can "totally" compete with foreign turbine makers on quality and price. "We are entitled to use the same advanced foreign technology, but our cost is lower by a third." The company has installed its own R&D team to build better turbines. The days when Chinese firms concentrated on small-capacity turbines are over. "We can make turbines of the same size and capacity as those big foreign brands."
Others disagree. Chinese competitors will "take time" to produce turbines of the same quality and range as Gamesa, says Zaldua. "Long experience is needed to make robust machines. Gamesa's G52 and G58 machines were first delivered in 2000."
Wind turbines have improved drastically in size and efficiency since the 1970s. Today's 60-metre blades replaced their 10-metre predecessors, allowing for greatly increased power generation. More efficient turbines make wind-powered electricity cheaper to produce: US$2 per kWh in 1976 compared to US$0.03 with today's 5MW turbines.
Boasting more powerful machines, foreign turbine makers have so far dominated the Chinese market. Yet Chinese counterparts, hitherto soaking up the market for small-capacity and lower-spec turbines, are catching up.
China may revolutionize the business with a new turbine that uses magnetic levitation to replace conventional bearings in wind turbines. A recent design by the Guangzhou Energy Research Institute of China's Academy of Sciences allows turbine blades to turn with much slower wind speeds. Power output at such velocities is low however.
A firm linked to the Institute, Guangzhou Zhongke Hengyuan Energy Science & Technology Co., Ltd, which invested RMB 400 million in building a prototype of the Maglev turbines, predicts revenue of RMB 1.6 billion from the generators. The new machine boosts wind energy generating capacity by as much as 20 percent over traditional wind turbines, explains company marketing manager Du Hainan. The Maglev turbines will also be 20 percent more expensive than conventional ones, he adds.
Though most of the customers are domestic, orders are also "pouring in" from overseas, says Du. Makers of conventional turbines have reason to worry. "I'm sure we'll take away part of those conventional turbine makers' market, but only a small part." Price-conscious customers and smaller-scale wind farms will stick with conventional turbines, he predicts. "It's like a racing car in that it's much more advanced in its capabilities compared to a family passenger car, but it can never occupy the whole market."
(China Today September 23, 2008)
