The New Wind Energy Market in Vietnam. From the Perspective of a Turbine Manufacturer

Transcription

1 The New Wind Energy Market in Vietnam From the Perspective of a Turbine Manufacturer

2 Agenda 1 ENERCON GmbH 2 New Markets and South-East Asia Experiences 3 Wind power in Vietnam 2

3 ENERCON overview Headquarter Aurich, Germany Employees > 17,000 Production facilities (national) Aurich, Emden, Magdeburg, Haren Production facilities (international) Sweden, Brazil, Turkey, Portugal, Canada, Austria, France Production area 870,000 m² (as of 2013) Sales offices 8 domestic; 24 international Service stations more than 300 worldwide Logistics - E-Ship 1 (transport ship) - e.g.o.o. Eisenbahngesellschaft Ostfriesland-Oldenburg mbh - Mobile cranes up to 1,600 t - Hundreds of service vehicles 3

4 Market share by installed capacity worldwide, 2014 in % Siemens 9.9% GE Wind 9.1% Goldwind 9.0% ENERCON 7.8% Suzlon Group 5.8% Vestas 12.3% United Power 5.1% Gamesa 4.7% Mingyang 4.4% Others 28.2% Envision 3.8% ENERCON is the fifth largest manufacturer of wind turbines worldwide. source: Navigant Research (03/2015): World Wind Energy Market Update

5 Market share by installed capacity in Europe, 2014 in % Acciona 0.4% Goldwind 0.4% Gamesa 2.1% GE Wind 4.7% Others 0.4% ENERCON 28.7% Nordex 8.7% Vestas 25.8% Suzlon Group 12.1% Siemens 16.4% Also on an European level, ENERCON is among the leading manufacturers. source: Navigant Research (03/2015): World Wind Energy Market Update

6 Market share by installed capacity worldwide, 2014 in % Siemens 9.9% GE Wind 9.1% Goldwind 9.0% ENERCON 7.8% Suzlon Group 5.8% Vestas 12.3% United Power 5.1% Gamesa 4.7% Mingyang 4.4% Others 28.2% Envision 3.8% ENERCON is the fifth largest manufacturer of wind turbines worldwide. source: Navigant Research (03/2015): World Wind Energy Market Update

7 installed capacity (in GW) cumulative power (in GW) Installed power capacity over time 4 3 Installed power (Export) Installed power (Germany) Cumulative power Over 22,220 ENERCON turbines produce more than 33,200 MW worldwide (as of December 2013). 7

8 Global activities of ENERCON ENERCON is active in an increasing number of emerging markets. 8

9 Agenda 1 ENRCON GmbH 2 New Markets and South-East Asia experiences 3 Wind power in Vietnam 9

10 Enercon New Markets Costa Rica and Uruguay COSTA RICA Enercon in Costa Rica since 2008, installed 72 turbines with 64.8 MW capacity. Lessons learnt Important to have local teams to support the process and make sure required scope is met. This will also alleviate issues due to time and culture differences URUGUAY Enercon this year installing first 24 turbines with 55.2 MW capacity this year. Larger wind farm layouts pays-off because of high crane costs, - compared to single turbine installations Cost savings by using local workforce for road construction, cabling, and foundation construction Service more expensive due to obstacles in custom clearance and transportation time/costs of spare parts. Employee retention for service workers difficult due to high level of training make them valuable on market Permissions difficult to get, which have limited the number of new wind farms 10

11 Enercon Asia Japan and Taiwan JAPAN Conditions Good wind, 7-8 m/s, Potential capacity > 5,000 MW Feed-in-tariff Yes Enercon in Japan since 1998, installed 250 turbines with 396,65 MW capacity. TAIWAN Conditions Strong wind (8-9 m/s) Potential capacity Around 1,600 MW Feed-in-tariff Yes Enercon in Taiwan since 2001, installed 200 turbines with MW capacity. Japan and Taiwan had success with feed-in-tariff as investment tool and have more than 6 GW installed 11

12 Agenda 1 ENERCON GmbH 2 New Markets and South-East Asia experiences 3 Wind power in Vietnam 12

13 Vietnam - Situation Wind maps and yield estimates show that Vietnam is one of the most interesting countries in regard to wind in the region. Places for wind farms are mapped out, and a pipeline of possible projects are ready and have been so for quite a while. More capacity is needed. Estimates for a tripling of the energy need within the next 20 years makes energy generation a key issue in keeping the development ongoing. A political framework is being created, for example wind is included in the Vietnamese governments Master Plan (PDP) and several incentives are available for renewable energy generation. The grid code is currently under development to accomodate a higher mix of energy sources. This is important to ensure that the energy sources helps maintain a stable power supply. 13

14 Vietnam - Challenges Financing is not readily available for wind projects. There is still a lack of investors that have been convinced on the profitability of wind in Vietnam. Two main factors: Feed-in Tariff is currently too low when we compare with other countries where Enercon is present, a higher FIT would make the wind power development in Vietnam flourish. There is a need for a higher FiT or a similar tariff system with long-term plans, that can support the renewable energy generation. The business environment is still immature. Despite the step into WTO and increasingly business focused legislation, it is still difficult to avoid corruption which creates unecessary risks when conducting business. A more detailed framework for wind / renewable energy projects including clear legislation and transparent responsibilities could mitigate this. 14

15 Vietnam Prospects Urgent need for energy. Vietnam s energy need is growing faster than new capacity is created. Compared to conventional power sources, wind parks are one of the fastest ways to add extra power to a grid. Salary level is lower than our other Asian markets and there is an available work force. This makes it financially interesting to let as much as possible be locally done. It will create jobs in transport, installation, and also for the service and maintenance. Construction time in years Min Max We can use locally produced towers which will keep down the CapEx costs. 15

16 Vietnam Why a Feed-in Tariff (FIT) Feed-In Tariff is more efficient. It costs less compared to quota systems, but increases the installed capacity faster. Politics can control the promotion of the development by rising or reducing the tariffs for each technology. FIT with long lifetime will give investments lower interest rates, because of the guaranteed income of the operator. Even during the economic crisis, the German renewable industry sector grew and so did the installed capacity. Job creation Germany in renewable energy 16

17 Vietnam Enercon presense in Vietnam New representative office: Close to site and clients in same timezone Easier to follow inside knowledge on law changes Access to companies for logistics and engineering companies Int l team with experience in Wind and Vietnamese market Representative office in HCMC opened this May Project team will join with first project Service offices will be established when wind farm opens Representative office Centec Tower 4/F., Nguyen Thi Minh Khai St.,Dist 3, HCMC 17

18 ENERCON has over 5,500 service employees worldwide Service structure overview: Germany Europe World 13 companies 26 companies 9 companies 131 service stations 170 service stations 25 service stations 18

19 Thank you for the attention! ENERCON GmbH Dreekamp 5 D Aurich Telefon: Fax: