The Asia Pacific market is tipped to produce over 20GW of offshore generation by 2025 (Renewable Energy World 2011). China is where the most growth is expected. However, despite high expectations, Asia’s offshore market is in its very early stages.
One of the largest Chinese wind turbine manufacturers, Goldwind, unveils its offshore strategy. The company has much faith in the industry, having moved $22million of their investment from onshore to offshore to create an offshore wind turbine plant, as reported by Wind Energy Update.
Although Goldwind plan to move into the offshore market, the research and development manager, Ku Wai , does not believe the offshore wind turbine sector is ready to meet the demand. He explains that “the technical supply chain for offshore in China is not there” . To address this issue Goldwind plan to source 50% of its components from outside of China, because of the better technology and experience in other regions. Ku Wai explains that this will boost foreign sales.
This will increase European sales, but for suppliers to win the contracts with Goldwind, like other wind turbine manufacturers, a supplier must fit a specification.
Although Goldwind plan to go offshore in China, Kai says there are still a lot of risks. “We shouldn’t rush offshore in China. Europe has built up a systematic material industry chain and a very strong technical understanding of each component. This is why most Chinese OEM’s are outsourcing their manufacturing and design”.
In the case study by Wind Energy Update, it is becomes clear that the Chinese industry should not be seen as a threat to the European supply chain. In fact it should be seen as a business opportunity. If European suppliers lean on their past experience it should put them at the top of the supplier list for these growing Chinese wind turbine OEMs.
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Offshore WIND staff, July 2, 2012; Image: Goldwind