TOP SECTOR WIND ENERGY Opportunities for Dutch companies

Transcription

1 WINDFARM XINJIANG, SOURCE: WIKIPEDIA China TOP SECTOR WIND ENERGY 1

2 China WIND ENERGY 2

3 March 2014 Focal point: Embassy of the Kingdom of the Netherlands in Beijing Other participating offices: Consulate General Shanghai Consulate General Guangzhou Consulate General Hong Kong Netherlands Business Support Office Dalian Netherlands Business Support Office Jinan Netherlands Business Support Office Qingdao Netherlands Business Support Office Nanjing This series of opportunity reports is a joined effort of the Netherlands Economic Network in China, consisting of the Embassy of the Netherlands in Beijing, the Consulates-General in Shanghai, Guangzhou and Hong Kong, and the Netherlands Business Support Offices (NBSO s) in Chengdu, Dalian, Jinan, Nanjing, Qingdao and Wuhan. Unauthorized use, disclosure or copying without permission of the publisher is strictly prohibited. The information contained herein, including any expression of opinion, analysis, charting or tables, and statistics has been obtained from or is based upon sources believed to be reliable but is not guaranteed as to accuracy or completeness. 3

4 Contents 1. PREAMBLE 2. SUMMARY OF GENERAL DEVELOPMENTS 3. GOVERNMENT INVESTMENT AND DEVELOPMENT PLANS 4. CHINESE GOVERNMENT: POLICIES AND OTHER SUPPORTING MEASURES 4.1 Policies to encourage wind turbine production 4.2 Policies to stimulate the wind power market 4.3 Policies for offshore wind power 4.4 Technical standards and specifications for wind energy 5. CHINESE MARKET PLAYERS 6. MARKET INFORMATION: MAJOR PROJECTS 7. MARKET TRENDS, DEVELOPMENTS, AND CHALLENGES 8. GOVERNMENT SUPPORT FOR DUTCH CLEANTECH COMPANIES IN CHINA 9. DESTEP FACTORS 10. REGIONAL INFORMATION 11. NETHERLANDS ECONOMIC GOVERNMENT NETWORK 12. REFERENCES

5 1. PREAMBLE China has experienced a rapid development of the wind energy sector in the last decade, through which China achieved a leading position globally in terms of power generated through wind energy and has become an important player in the wind energy market. Therefore, China attracts the attention of key market players in the wind energy industry. The Netherlands has a long history in wind energy and a lot of experience to share, especially in the offshore wind energy sector. In the past years, a growing interest of the Netherlands institutions and companies in China was seen. This report elaborates on the Chinese development plans for wind energy, the regulatory environment and the market forces at play. The purpose is to provide an overview of opportunities in the Chinese wind energy sector, by giving a general introduction of the Chinese wind energy market to companies interested in exploring this market. The information contained in the report comes from official publications of China s National Energy Administration and Chinese research institutes, as well as interviews with experts in the industry. China still is a predominantly exporting and manufacturing focused nation, which is also resembled in the structure of its port sector 5

6 2. SUMMARY OF GENERAL DEVELOPMENTS The development of renewable energy is on the rise in China in the last decades. Although in 2013 investments of China in renewable energy decreased 3.8 per cent, China was still the world s biggest investor in renewable energy development with the amount of USD 61.3 billion. Compared to the 11 per cent decrease in global investments in renewable energy, the investment of China was still at a relatively high level. It is expected that in the coming years the development of renewable energy in China will stay on a steady growth path due to the ongoing and planned reforms in the energy and electricity sectors and because of the focus of the Chinese government on pollution control. Meanwhile, together with Japan, China leads the world in the outbound renewable energy investment, e.g. China invested heavily in Turkey to build solar power plants. China is the largest market for wind energy in the world. The Chinese windpower market has been more than tripled, from 25.8GW in 2009 to 91.4GW, by end 2013, allowing China to continue its lead in terms of global cumulative installed wind power capacity. In 2013, it installed 16.1GW, accounting for 45.5 per cent of the world s newly installed capacity, ahead of the US and the EU, ranking nr. 1 in the world. Investments have propelled four of its wind turbine suppliers to rank among the world s ten largest suppliers. In 2012, these four companies accounted for a 14.5 per cent share of the global wind energy market. Goldwind held 6.0 per cent of the world market with United Power, Sinovel, and Shanghai Electric slightly behind at 3.5 per cent, 2.7 per cent and 2.3 per cent, respectively. China s wind power market began as a prototype project co-funded by the Danish government in 1988 China s current prosperous wind power market initially began as a prototype project that was co-funded by the Danish government in During the early 2000 s, the market for wind power really took off. Whereas initially China s electricity generation and grid management was controlled and run by a single corporation, in 2002 the central government broke up the State Power Corporation into five generation companies and two companies to manage the grid across China. This enabled competition among firms, something which previously had not existed. In 2003, the government took another step towards creating a competitive wind power market by introducing the Tariff Reform Program. The 6

7 program guaranteed demand and started the concession system that encouraged investors to bid for projects by guaranteeing at least their energy production price. The program also included a 50 per cent domestic manufacturing requirement, which was increased to 70 per cent in 2005 with the introduction of China s newest Renewable Energy Law. This law introduced the target of a minimum of 15 per cent of energy consumed is to come from renewable energy by 2020 and also required energy companies to have a minimum of 5 per cent renewable energy output by the same year. With the development of the wind power market, starting from November 1, 2009, the requirement on 70 per cent domestic production has been cancelled. Poor connection to the existing grid is one of the biggest obstacles for the further development of wind energy China s implementation of the concession program that began in 2003 encountered several problems, because it prevented a level playing field for foreign investors who could not compete with the low and often artificial prices the Chinese firms could produce at. In 2007, China got rid of the lowest price bidding and in exchange used an average price bidding, which allowed foreign investors to have a greater chance of securing projects. China also mandated that renewable energy, specifically wind power, should have priority when selling energy to grid companies. In 2009, Chinese government changed the way energy pricing works. Instead of having each province bid on wind power projects based on varying prices, China has introduced four different regions with a benchmark price ranging from 0.51RMB/kWh to 0.61RMB/kWh depending on the region the project is located in. In the meantime, the central government made some tax preferential policies to encourage the equipment manufacturers and the construction wind power projects. Due to the explosive growth of the Chinese wind energy industry, the pace of development of the industry has for now outstripped the ability of the grid and system operators to manage the supply. Poor connection of the power generated by wind energy to the existing grid is one of the biggest obstacles for the further development of wind energy. In 2012, in order to regulate the development of wind energy and to drive the market in a healthy direction, the National Energy Administration promulgated the 12th Five Year Plan for Wind Power Development, to further guide the development path, the major tasks, the implementation measures, as well as to indicate the support from the central government to the wind power 7

8 industry. The Plan set the guiding principles for the development of wind power in the coming years. During institutional restructuring in 2013, the State Electricity Regulatory Commission was merged with the National Energy Administration. Through this change, the regulatory bodies and responsibilities of energy and power are now integrated. This can be seen as a positive development in the reform of the electricity system and hopefully will be helpful to solve some of the current bottlenecks for the wind energy development. 8

9 3. GOVERNMENT INVESTMENT AND DEVELOPMENT PLANS The rapid economic growth of the Chinese economy has led to a rising demand for energy. According to the China Electricity Council, China s total installed capacity for power generation has increased from 66GW in 1980 to 1144GW at the end of The International Energy Agency (IEA) estimates China s power capacity to reach 1764GW in 2020 and 2294GW in According to the World Energy Outlook 2011, about 60 per cent of global growth in the electricity sector is expected to take place in the emerging economies of non-oecd Asian countries and China alone accounts for nearly 40 per cent of the global total. The Business Monitor International, which provides in-depth analysis and data on a large diversity of industries, expects that China s annual average growth of total electricity generation will be 6.29 per cent between 2012 and 2016, with a total installed capacity reaching 1610GW by Since 2011, all new projects must undergo approval before starting construction With coal accounting for nearly 80 per cent of all generated electricity in China over the past decade, the current energy system in China has high greenhouse gas emissions. Reduction in CO2 emissions is a key priority for the Chinese government. It has therefore turned its focus to renewable energy. One sector that has been particularly successful is China s wind sector. In 2012, wind energy surpassed nuclear power and became the third largest source of electricity after coal and hydropower. According to statistics announced by GWEC, by the end of 2012, non-fossil fuel energy sources already accounted for 29.5 per cent of China s electricity generation capacity. In the 12th Five Year Plan for Renewable Energy, the Chinese government has set a goal of 100GW wind energy generation capacity by 2015, including 5GW from offshore. In the 12th Five Year Plan for the Wind Power Development, which was formulated based on the national energy plan and the renewable energy plan, the development goals for wind energy during the 12th Five Year period ( ) were further specified as: By the end of 2015, the total wind power installation capacity will reach 100GW, annual electricity output will reach GWH, which will contribute to more than 3 per cent of all the electricity output of the country. Cumulative capacity of large wind farms in Hebei, Mengdong, Mengxi, Jilin, Gansu Jiuquan, Xinjiang Kumul, Jiangsu coastal area, Shandong coastal 9

10 area and Heilongjiang will reach 79GW, of which 5GW will be offshore wind. By the end of 2015, 3-5 large Chinese wind turbine manufacturers will have strong and competitiveness presence in the global market, as will high quality spare parts suppliers. Based on the development in the 12th Five Year Plan period, the Wind energy industry will be further developed. By the end of 2020, the cumulative capacity will reach 200GW, with offshore wind will contribute 30GW. The electricity generation will reach GWH accounting for 5 per cent of the national power supply. According to the plan, during the next five years, newly installed wind power capacity will reach 70GW, and the total investment will be RMB 530 billion. Since 2011, all new projects must first be included in the annual project development plan of NEA, and undergo approval before starting construction. This allows NEA to get a sense of the total volume of the projects to be permitted, in order to avoid the lack of coordination between wind farms development and grid expansion. 10

11 4. GOVERNMENT POLICIES AND OTHER SUPPORTING MEASURES China released its newest environmental policy in 2005 and started implementing it in This Renewable Energy Policy is a strategic plan to incorporate renewable energy into China s current coal-based energy system. China had attempted to include wind energy into the energy grid before the Chinese government published its renewable energy policy, but this was unsuccessful. The Chinese government used a concession-bidding program that proved to be more problematic than beneficial. From 2003 to 2008, there were 5 rounds of bidding and roughly 49 projects were approved during that time. In order to stimulate the development of the domestic wind power manufacture industry, the government requested the inclusion of 70 per cent domestic components in each of the project. By taking this protective and supportive measure, the competitiveness of the Chinese wind turbines has been strengthened and is now recognized internationally. Since 2010, the Chinese government cancelled the 70 per cent requirement, and domestic and international companies should now be able to compete in a level playing field. To stimulate the development of the domestic wind power industry, the government requests 70% domestic components In 2012, the Chinese government released the 12th Five Year Plan for Renewable Energy Development, which stated the aim to have 15 per cent of its total energy come from non-fossil in It is this plan that has become the backbone for providing direction to China s renewable energy development. To support the development of the wind power industry and to encourage more utilization of wind power, the government at different levels published supporting policies. Those from the central government mainly represent four perspectives: 4.1 Policies to encourage the wind turbine production In 2008, the Ministry of Finance promulgated the Interim Measures for the Administration of Special Fund for the Wind Power Equipment Industry to provide financial support to the wind power equipment manufacturers to encourage them to do independent research and develop turbines and spare parts for multi-mw wind power equipment. 11

12 4.1.2 In 2008, the Ministry of Finance, NDRC, Customs and State Taxation Bureau jointly promulgated a notice to adjust the import tax rebate system regarding imported wind power equipment. The notice states that since January 2008, for the purpose of producing large capacity wind turbines (above 1.2MW), the import of main components or raw materials can enjoy a tariff and import value added tax rebate. For the key part or the raw material used on the imported large capacity turbine (single capacity above 1.5MW), the tariff and import value added tax are completely exempted The companies which are identified as high-tech companies can enjoy a 15 per cent income tax rate (the normal tax rate is 25 per cent). 4.2 Policies to stimulate the wind power market In 2009, the government introduced a feed-in tariff (FIT) to improve the wind power market. According to the policy published by the National Development and Reform Commission, the FIT varies between RMB 0.51/ kwh and 0.61/kwh based on the difference of wind resource of the regions. For more specified price please see the chart below: Category Region Except 1) RMB 0.51/kWh Inner Mongolia Autonomous Region Chifeng, Tongliao, Xing anmeng, Hulunbeier Xinjiang Uygur Autonomous Region Urumqi, Yili, Karamay, Shihezi 2) RMB 0.54/kWh Hebei Province Zhangjiakou, Chengde Inner Mongolia Autonomous Region Chifeng, Tongliao, Xing anmeng Hulunbeier Gansu Province Zhangye, Jiayuguan, Jiuquan 3) RMB 0.58/kWh Jilin Province Baicheng, Songyuan Heilongjiang Province Jixi, Shuang yashan, Qitaihe, Suihua, Yichun, Daxinganling region 12

13 Category Region Except Ningxia Hui Autonomous Region Gansu Province Xinjiang Uygur Autonomous Region 4) RMB 0.61/kWh Parts of China not listed above Zhangye, Jiayuguan, Jiuquan Urumqi, Yili, Karamay, Shihezi In addition, central government also implemented the cost sharing system for wind power to charge an additional renewable energy premium from the electricity consumers which are receiving services from grid companies at and above provincial level, in order to compensate the exceeded part of the cost of the power generated by wind energy over the feed-in tariff of the power generated by coal In 2008, Ministry of Finance and State Taxation Bureau jointly promulgated the notice to deduct and refund 50 per cent of the value added tax of companies which sells self-produced electricity by wind power Wind power generation projects are regarded as electricity infrastructure projects, therefore, they fall under the category of three years exemption and three years deduction of company income tax. That is to say, starting from the day that the power generation company receives its first income, the company could enjoy three years income tax exemption followed by three years 50 per cent income tax deduction Since 1 May, 2008, only the imported turbine of which the capacity exceeded 2.5 MG could be exempted from the import duty, while before, all imported wind turbines were exempted from import tax. However, on average the cost of imported foreign wind turbines are still 20 per cent higher than to domestically made wind turbines To solve the problem of idle wind turbines, NEA released policies to regulate the connection to the grid of power generated by wind energy. In the policies, it is said that the proportion of the gird connection of the current wind farms will decide the approval of future expansion or new construction projects in the region. Besides all these supporting policies, NEA is working on a new regulation to manage the electricity quotas of renewable energy in order to achieve the goal set by the 12th Five Year Plans. However, because of lack of agreement 13

14 among different provinces and electricity companies, the promulgation of this regulation was postponed so far. 4.3 Policies for off-shore wind power In 2009, the National Energy Administration promulgated the Guideline for the Planning of Offshore Wind Farms. The Guideline set up the basic rules for the planning work of offshore wind farms. In 2010 and 2011 the National Energy Administration and the National Oceanic Administration jointly published interim rules and implementation measures on the offshore wind construction projects in order to regulate the off-shore wind power market. The Interim Rules is the first policy document focusing on offshore wind energy development: it coordinated various governments concerned. It is requested in the Rules and Implementation Measures that the development of offshore wind farms should follow an award system. The right of project development should go through the public tenders and be awarded by NEA In early 2013, offshore wind turbine development and production, as well as offshore wind farm development and equipment production were listed under the encouragement category of the national guidance on industrial restructuring, which implies that offshore wind power will get more attention in the coming years, and will experience further development. 4.4 Technical standards and specifications regarding wind energy The state government released a series of technical standards and specifications regarding the manufacturing of wind turbines and parts, and the construction and development of wind farms, in order to guarantee the quality of the equipment and the wind farms. 14

15 5. CHINESE MARKET PLAYERS With four out of ten world top wind turbine companies being Chinese, it is no surprise that the local companies are pushing for higher-grade technology, both by joint ventures and through their own R&D. The top three Chinese wind energy companies in 2012 were Goldwind, Guodian United Power and Sinovel, together accounting for a 44 per cent share of the annual domestic market. Goldwind achieved the largest increase of wind turbine installation of the year with MW, taking 19.5 per cent of the domestic market. United power and Sinovel followed with the installation capacities of 2029MW and 1203MW, accounting for 15.7 per cent and 9.3 per cent of the market, respectively. Some Chinese wind turbine manufacturers achieved growth mainly through their own R&D, while some other companies are pursuing development through partnerships and mergers. One company has pursued growth through the merging of a Dutch company and its own local company. In August 2009, the Chinese XEMC acquired Dutch Darwind. With this merger, the company acquired the knowledge and expertise to further develop its 5MW direct drive turbine. While another Chinese company, Huayi Electric, has partnered up with the Dutch Mecal to design a 6MW wind turbine. Some Chinese wind turbine manufacturers are pursuing development through partnerships and mergers. In January 2012, United Power developed a 6MW prototype offshore wind turbine. According to United Power, it has independently developed this wind turbine through borrowing technology from previous turbines and through its experience in operating over 3,000 turbines. United Power also states that this turbine can be used onshore and inter-tidal areas. Shortly after the release of this 6MW turbine, Sinovel announced that they too had developed their own 6MW turbine in Jiangsu Province. In recent years, the market share for international turbine manufacturers in China is limited, mainly because of the competition from local companies. The overcapacity of Chinese companies is driving the industry into cutthroat competition on prices. Although the reliability of foreign products gets high scores during the tender process, the inferior position on prices overshadow the advantages. Since 2008, the domestic production of spare parts can meet the demand of 15

16 the market. The turbine manufacturers prefer to produce parts by themselves, in order to secure the supply and quality as well as a degree of cost control. Therefore, the development space for the specialized parts-, research- and production companies is very limited. To survive in the fierce competition and pressures from the turbine manufactures, it is key that the spare parts producers innovate, control quality and minimize cost. For the moment, the companies which have large shares in the blade markets are: China Composites Corporation, Sinoma, AVIC Huiteng Wind Power Equipment Co. Ltd, etc. International cooperation Goldwind, China s largest wind turbine supplier in 2012, signed deals with four international component suppliers. Three of them are based in the United States. One partner is the US-based LM Windpower, which will provide the blades for Goldwinds turbines. Another US-based partner is Timken Company. This company will provide technical services, products, and aftermarket support. This is further to Goldwind s 2010 deal with the Timken Company. The 2010 deal was worth RMB million, providing bearings for Goldwind s 1.5MW and 2.5MW turbines. The third US-based partner is Broadwind Towers, which produces tower components. The fourth cooperation is with Finland-based Switch, an international component supplier, which provides megawatt-class permanent magnet generators (PMG) and full-power converter packages for wind power. The overcapacity of Chinese companies is driving the industry into cutthroat competition on prices Other Chinese manufacturers are also actively seeking opportunities to develop in international markets through investment, partnership or pure sales. For example, Sinovel invests in Greece to develop wind farms and also to build a production base; United Power invests in Brazil to build a factory. The following table highlights the top ten wind turbine manufacturers and their shares of the local Chinese market in

17 Company Origin Market Share Installed Capacity (MW) 1 Goldwind China 19.5% United Power China 15.7% Sinovel China 9.3% Mingyang China 8.7% XEMC Darwind Dutch-Chinese 6.9% Shanghai Electric China 6.3% Envision China 4.2% Gemesa Spain 3.8% Dongfang Turbine China 3.6% Vestas Denmark 3.2% Top 10 company s market share and their increased capacity (2012) 17

18 6. MARKET INFORMATION: MAJOR PROJECTS Onshore wind energy Wind energy is the largest and most mature renewable energy source besides hydro-energy in China. It is currently also most commercially developed on a large scale and is likely to remain that way because of the cost effectiveness and low environmental impact. China has become both the largest growth market and the leading country in terms of installed capacity. According to the Global Wind Energy Council, China installed 12.96GW wind power capacity in 2012, which was 28.9 per cent of all newly installed wind capacity in the world. China has become both the largest growth market and the leading country in terms of installed capacity The targets for Chinese wind energy have been revised upwards several times. The target for wind energy in 2015 has been raised to 100GW of installed capacity and for 2020 this target has been raised to 200GW. China s wind power sector began to develop at a significant rate in A clear development of objectives and plans, the establishment of a clear legal framework, and the involvement of a variety of investment sources in the sector have been the key political reasons for the sector s development. China has designated a number of wind regions, which should provide for 138GW wind power in These areas include Inner Mongolia, Gansu, Xinjiang, Hebei, Jilin and Jiangsu provinces. 18

19 Wind Farm Base Current capacity Newly Constructed Capacity Planned Capacity Major Development Area Major Projects Target Market Hebei Zhangjiakou, Chengde, coastal area - second phase of Zhangjiakou - first phase of Chengde - third phase of Zhangjiakou - second phase of Chengde - Tangshan offshore wind farm Northern grid East Inner Mongolia Tongliao, Hulunber, Xing an meng - Tongliao Kailu Base - Tongliao Kezuozhongqi Zhurihe base - Xing anmeng Taohemu base - Hulunber base Northeast Grid Baotou, Bayannur, Wulanchabu, Xilin Gol - Baotou Damaoqi base - Bayannur Wulatezhongqi base - Xilin Gol base; - Wulanchabu base West Inner Mongolia Northern and Northeast gird Jilin Baotou, Bayannur, Wulanchabu, Xilin Gol - Baicheng Tongyu Zhanyu Base - Baizheng Zhaonan Base - Da an Base - Siping Daheishan Base - Songyuan Changling Base Northeast grid Gansu Jiuquan, Wuwei - First and Second phases of Jiuquan Base - Wuwei minqin base Northwest grid Xinjiang Jiangsu Kumul, Urumqi - Southeast Kumul base - Urumqi Daban base - Kumul Santanghu base - Kumul Nuomaohu base Yancheng, Nantong - East and south Yancheng offshore wind power bases Northwest grid and middle China grid Eastern grid Shandong Yantai, Weihai, Dongying, Binzhou, Weifang, Qingdao, Rizhao - Offshore wind farms along the coast and in wind farms in the hinterland - Laizhouwan, Libei offshore wind power base Northern grid Heilongjiang Daqing, Qiqihar, east of Harbin (Yilan, Tonghe), Kiamusze, Yichun, Suihua, Mudanjiang - West Daqing base - North Daqing, and Qiqihar Fuyu base Northeast grid Total Large Wind Power Farms and Major Construction Projects GW (12th Five Year Plan Period, ) 19

20 Offshore wind energy The world s offshore wind energy market has been dominated by Europe with the United Kingdom, Denmark, the Netherlands, and Germany. The offshore wind energy started to develop in China only in very recent years. It was only in 2010 that China s first offshore wind farm was built. The farm was named the Shanghai Donghai Bridge and it has one of the largest offshore wind farm capacities (102MW). In less than two years, China built its first inter-tidal wind farm and second offshore wind farm in Jiangsu Rudong. The project has a capacity of 150MW and shortly after construction both of these projects were connected to the grid successfully. After the completion of a feasibility study early in 2012, China announced a 300MW wind farm in Leting (Hebei Province). The total investment for this project is estimated at RMB 5,810.9 million and grid integration for the project is expected in Soon after the announcement of the Hebei project, the Chinese authorities further encouraged the wind power sector by announcing another 198MW offshore project in Zhuhai City. However, this project was not up for tender and was awarded to a consortium of China Southern Power Grid and Guangdong Electric Power. Although the construction of the farm was not up for tender, tenders are allowed to be submitted for the supply of the wind turbines. Currently, China has a concession-based bidding program for national offshore wind farms, similar to previous policies aimed at onshore wind farms. The central government had four projects in May 2010 for concession-based bidding. The developers to attend the tender should meet following requirements: 1) The applicant company must involve an independent legal entity. 2) Bidders may be a single or a joint-entity; a A single entity must be a Chinese-funded enterprise or a Sinoforeign joint venture that is held and controlled in China. b A joint-entity must comply with the mentioned requirement. 3) The capacity of the wind power plant must be under construction or finished by a set date. In this round of tendering, four state-owned companies got the bids. However, due to the difficulty to coordinate among different authorities, the four projects are slow to be implemented. A second round of tenders has been postponed without a clear date. But, it is expected the future tender 20

21 will follow the same requirements of the first round, or maybe have more stringent ones. With China having over 18,000 kilometers of coastline, it is not surprising that the National Energy Administration (NEA) is pushing offshore wind energy. The objective for China s offshore wind production is to reach 5GW by Province Current Capacity Newly Increased Capacity Capacity Under Construction Capacity at Preparation Phase Major Projects Jiangsu Dafeng intertidal C1A, C4 - Rudong intertidal C1, H5 - Xiangshui offshore H1 - Rudong offshore H9 - Dafeng offshore H7 - Dongtai offshore H2 - Nantong Jiangjiasha offshore C2 - Yancheng Zhugensha intertidal C1 Shandong Lu Bei offshore 5# and second phase - Laizhou Bay offshore 1#, 2#, 7#, 8#, 13# - Changdao Bay offshore - Bandao offshore 2# Shanghai Donghai Bridge offshore 2nd phase - Lingang offshore 1st phase, 2nd phase - Fengxian offshore 1st phase Hebei Tangshan Laoting Puti island offshore - Tangshan Laoting Yuetuo island offshore - Tangshan No. 3 offshore - Huangye offshore Guangdong Zhanjiang Wailuo offshore - Zhuhai Guishan offshore - Zhanjiang Xinliao island offshore - Shanwei Jiaxi offshore - Zhuhai Jinwan offshore - Jieyang Jinwan offshore - Huizhou Xichong offshore Fujian Putian Pinghai Bay offshore 1st phase - Putian Nanri island offshore 1st phase - Zhangpu Liuao offshore 1st phase - Ningde Xiapu offshore 1st phase - Pingtan offshore Zhejiang Jiaxing offshore 1# - Putuo offshore 6# - Daishan offshore 1#, 2#, 4#, - Cixi offshore 1# - Jiaxing offshore 2# - Xiangshan offshore 1# Other Regions Guangxi Fangcheng port - Guangxi Beihai - Liaoning Dalian Total Large Offshore Wind Power Farms and Major Construction Projects GW (12th Five Year Plan Period, ) 21

22 7. MARKET TRENDS, DEVELOPMENTS, AND CHALLENGES Since 2005, there has been a substantial increase in the wind power energy sector after the central government required that 70 per cent of wind turbine parts must be domestically manufactured. This has created a surge in the number of local manufacturers, followed by a significant drop of the market share of foreign or foreign funded-enterprises. Within five years, the market share of foreign firms in China dropped from 73 per cent to only 13 per cent. Wind power grid integration and consumption is becoming a critical factor for future wind power deployment. China s large wind farms are concentrated in the north, where power grid infrastructure is insufficient to match large-scale wind energy production. Grid connection bottlenecks and excess local power supply have led to large-scale wind power curtailment. The market for turbines with larger output is still profitable for Dutch firms The Chinese wind market thus has key challenges for foreign companies. The government has taken action to prevent the market from overheating by making it increasingly difficult to obtain project approval with new standards and certification requirements constantly being updated. As a consequence, analysts expect a slower growth of wind energy in China, which may lead to overcapacity in the production of and pressure on turbine prices. The second challenge in the Chinese market for renewable energy is the competition. Dutch companies are generally smaller than Chinese stateowned enterprises (SOEs), so Dutch companies are often limited financially in comparison to the large-scale Chinese firms. This presents a disadvantage, because Chinese firms often secure projects on a larger scale as opposed to the smaller Dutch firms. The third challenge in China is a lack of intellectual property protection. Some foreign firms have sold licensing rights to the smaller Chinese firms in order to get market penetration. However, due to increasing interests from Chinese manufacturers, they have also seen their technology leak to other Chinese manufacturers. Apart from these challenges, China also has some favorable conditions in store for foreign firms. A lot of investments are made in China, with room 22

23 for improvement in R&D. In addition, foreign firms already are ahead in the development of the products. It has been seen that the majority of the overheating problems are mainly contained in the lower capacity turbines of less than 1GW. This is because of the need for less complicated and less technologically advanced turbines. However, the market for turbines with larger output, 1-1.5MW or larger, is still profitable as Dutch firms generally have a stronger understanding of large wind turbines. There certainly is room for growth in this segment of the market. 23

24 8. GOVERNMENT SUPPORT FOR DUTCH CLEANTECH COMPANIES IN CHINA 8.1 Introduction The Netherlands government facilitates businesses and knowledge institutes from the Netherlands that want to become active in China. Key government organizations active in this area are RVO (Netherlands Enterprise Agency, that facilitates export on behalf of the ministry of Foreign Affairs and sustainable energy innovation on behalf of the ministry of Economic Affairs), and the diplomatic network of the Netherlands in China. In this chapter the main activities and instruments relevant to clean tech organizations from the Netherlands are outlined: 8.2 RVO RVO is a division of the Dutch Ministry of Economic Affairs that carries out policy and subsidy programmes focusing on sustainability, innovation, international business and cooperation. RVO is the number one contact point for businesses, knowledge institutions and government bodies who are seeking information and advice about financing, networking and regulatory matters. For more information see RVO supports various programmes in the field of sustainable economic growth in developing countries and emerging markets. These programmes focus on innovative pilot projects, joint-investments and transfer of technology, knowledge and skills in social and economic sectors. This is achieved through business cooperation and through cooperation between business and training- and knowledge institutes. 8.3 MoU energy cooperation China Netherlands In 2009, China and the Netherlands signed a Memorandum of Understanding (MoU) on energy cooperation. Signatories are the Chinese National Energy Administration (NEA) and the ministry of Economic Affairs of the Netherlands. RVO is the implementing body of the MoU on the Dutch side, on behalf of the Ministry of Economic Affairs. The representations of the Netherlands in China, such as the embassy in Beijing, are important partners in the implementation of the MoU. The MoU allows for cooperation on a broad range of energy topics. However since 2009 activities have mostly focused on renewable energy, i.e. solar PV, (offshore) wind energy, smart grids and bioenergy. One of the aims of the MoU for the Dutch government is to facilitate market entrance in China for 24

25 Dutch energy related businesses and knowledge institutes. This is achieved through Sino-Dutch activities such as study visits, seminars and matchmaking events, joined by government, industry and institutes from both China and the Netherlands. 8.4 Examples of recent activities in clean tech cooperation with China are: (Offshore) wind energy: wind energy is one of the priorities under the MoU. From 2011 onwards, several Sino-Dutch activities have been organized, such as study visits by Chinese energy officials and industry to the Netherlands and vice versa, seminars and matchmaking events. Recent events are a seminar prior to the major offshore wind conference in China (China Offshore wind Conference and Exhibition, June 2013 in Shanghai) and an event prior to the major wind energy conference in China (China Wind Power, October 2013 in Beijing). For wind energy in China the Netherlands government closely cooperates with Holland Home of Wind Energy (HHWE), and export association for Dutch wind businesses a.o. aiming for China (www. hhwe.eu). 8.5 Support for doing business in China RVO in general facilitates Dutch businesses in going abroad, including to China. It offers information, services and government support. The major forms of support are: - Information and advice: RVO answers general and specific questions about doing business in China, can provide dedicated market information and can perform a business partner scan. For more information see china - Missions: RVO together with representations of the Netherlands in China organizes economic missions for Dutch companies to China on several occasions. Clean tech often is one of the focus areas. 25

26 9. DESTEP FACTORS Demographic With over 1.3 billion inhabitants, China is the most populous country in the world. The country currently has over 50 ethnic groups. It is projected that China s population will exceed 1.5 billion people before This incredible population will only require more energy as it looks to modernize further. With this ever increasing demand for energy and China s goals of reducing its carbon emissions, it faces a monumental task. The people of China have often claimed that they would be willing to pay a little bit more money in order to have cleaner energy. This new way of thinking is apparent across the middle to wealthier class in China, as pollution becomes more of a worry for the Chinese people. Economic China is the second largest economy in the world and continues to grow at 7.8 per cent as of July This growth has been propelled by the manufacturing sector that is capable of producing goods quicker and cheaper than most developed nations. However, China is trying to change its identity from the manufacturing country of the world to a more innovative and forward thinking country. China has attempted to deal with this transition through renewable energies, sustainable development, and infrastructure that was once absent. It is also through this booming economy that China has become the world s largest consumer of energy, oil, and coal. It currently spends billions of renminbis on importing coal and oil abroad since its local supplies do not match the current demand, which is only set to increase as the population modernizes. Social-cultural With 27 provinces and roughly 650 cities, China has a vast cultural identity. It currently acknowledges 56 ethnic groups, spread across the country. The Han group is by far the largest ethnic group in China, accounting for 92 per cent of its population. When trading with the Chinese, the social aspect plays a significant role. Therefore, it is important to take notice of the Chinese norms and habits. Showing an interest in the culture is much appreciated. 26

27 Technological Before the 2005 Renewable Energy Policy came into power, Chinese wind turbine manufacturers were only capable of producing the highly innovative products through the use of joint ventures or through licensing agreements. This is changing quickly, as local manufacturers are spending increasingly large sums of money on their own R&D. This is in part due to the increased competition in the market sector and an increase in licensing litigation between international firms. This investment in R&D has allowed Union Power and Sinovel to unveil its 6MW turbine prototypes. As companies look to expand and create more technologically advanced turbines, we can predict a more competitive market. Ecological With over 9.5 million square kilometers of land area, China ranks the third largest in the world, after Russia and Canada respectively. China s large land mass has provided a wide range of biodiversity and ecosystems, ranging from desert ecosystems to forested areas. The protection of these resources is a priority for both the Chinese government and the international community as China houses some distinct and rare species, such as the panda. The Chinese government has also made efforts to reduce deforestation and combat desertification through planting trees on the margins of the Gobi desert. This project, commonly referred to as the Great Green Wall of China, had mixed success. Pollution has also become an issue that has arisen in the last decade as the upward demand of goods and energy has forced China to build more power plants and factories. The Chinese government has increased its efforts in implementing legislation to reduce the carbon footprint. Its landmark legislation came in 2005 in the form of the Renewable Energy Policy, which strives for a more profitable renewable energy sector. The Chinese government continues to try to improve and protect their ecosystems and plans to become even more active in its efforts. Political Given China s political system its government plays a critical role in most business matters. For example, in its 2013 third Plenum of the 18th Central Committee of the Communist Party, which can be characterised as the most important moment for policy setting, important domestic economic reforms were announced regarding urbanisation, domestic consumption, technological development, as well as fiscal and land-reforms, all having 27

28 major impact on the nature and pace of economic development and business opportunities. Leading principals are the Rejuvenation of the Chinese nation as well guaranteeing domestic stability through maintaining steady economic growth. For example, at present China has a very strong international economic focus on ensuring access to much needed raw materials to fuel and feed its economy. As a result, China is now export-destination number one for several raw-materials-producing countries. Similarly Chinese companies, often state owned, are at present engaged in several acquisitions of major international companies in order to assure favourable conditions for the required economic growth, specifically in the technological domain. These developments can suddenly change the Chinese economic landscape. Finally, allowing market forces to play a stronger role is, at best, a gradual process, carefully watched by experts. For example the announced Shanghai free trade zone will be a development to follow as one litmus test of the government s commitment to market liberalisation. The same can be said for how intellectual property right protection will be handled in the years to come. 28

29 10. REGIONAL INFORMATION Shanghai Consulate General As its 12th Five Year Plan states, Shanghai will focus on developing offshore wind energy. By 2015, the three offshore wind farms East Sea Bridge, Lin Port, and Old Port will be finished. Besides these large projects, Shanghai also encourages the development of small and medium size projects in the coastal areas. The goal is to achieve a capacity of 1GW by From the total investment of RMB 18 billion in the new-energy industry, the Shanghai Municipal Government will invest RMB 10 billion in wind energy. Of this investment RMB 3 billion is spent on land wind energy and RMB 7 billion on offshore wind energy. Projects (current and past up to 2011): The onshore Fengxian Haiwan Wind Farm was put into operation in 2003 and consists of 4 wind turbines with a total installed capacity of 3.4MW. The onshore Nanhui Wind Farm consists of 11 wind turbines with a total installed capacity of 16.5MW. The onshore Qinjian Bay Wind Farm consists of 4 with a total installed capacity of 3.4MW. The onshore Chongming Dongtan (Eastern Beaches) Wind Farm consists of 3 wind turbines with a total installed capacity of 4.5MW. The offshore Shanghai Donghai Bridge of 102MW was developed by Shanghai Donghai Wind Power Co. and was constructed in 2009 by CCCC Third Harbor Engineering. This offshore wind farm consists of 34 Sinovel 3MW wind turbines. It was completed in time for the World Expo in 2010 in Shanghai. The offshore Longyuan Rudong Intertidal Trial Wind Farm consists of 16 turbines with a project capacity of 32MW. All turbines have been installed. This wind farm cost RMB 500 million. The offshore Lingang Wind Farm will consist of 17 turbines with a capacity of 6MW, which makes a total capacity of 102MW. It is an investment of RMB 1.76 billion and will be completed in September

30 Guangzhou Consulate General Guangdong provincial government has pointed out its work focuses to further optimize and adjust Guangdong energy structure in view of the development of clean energy and renewable resources. Wind energy is no doubt one of prioritized areas, in particular offshore wind exploitation. It is planned to make full use of offshore resources up to 30 meters deep, and construct Zhuhai Guishan and other offshore wind projects. All the projects starting construction before 2015 are supposed to approach the total installed capacity of 2 to 3 million KW. During the 12th Five-year period, Guangdong has continuously strived for its wind energy development, in terms of further deepening wind resources exploitation, motivating wind energy equipment manufacturing industry and promoting wind power service industry. Due to lack of complete supply chain, the Province has lagged behind in its wind power equipment manufacturing, including overall units and main components. Mingyang Wind Power Co., Ltd, as the absolute leader in South China, has aimed for the preliminary research and further development of 10MW wind turbine. By 2015, Mingyang would target itself with an annual output of 2,000-megawatt grade wind generators. In addition, the application of wind and photo electricity storage and supply system and smart grid is also on the agenda and will be largely developed. Unevenly distributed energy resources within the Province have triggered huge market potential for power transmission and distribution. Multiple renewable energy sources coming from not only remote wind farms but also refuse landfill sites, solar panels and any other power generators, converge at the local power grid, which further distribute to all end users. In order to effectively dispatch electricity and better combine the large-scaled inflow of all types of new energy with the high requirements of distributed energy sources, intelligentizing power grid is highly demanded. Apart from Guangdong, Fujian province is also catching up with its wind power development by taking advantages of rich marine resources. Although the provincial government still focuses on onshore development, the preliminary research and preparation for pilot projects on offshore are on going. Early this year, Fujian Energy Group also sent one delegation to the Netherlands for fact-finding and knowledge accumulation, aiming at its future offshore development. 30

31 Projects: Guangdong: Zhuhai Guishan offshore wind farm and island power grid project, owned by Guangdong Electric Power Development Co., Ltd and China Southern Power Grid. The project capacity is 198MW, turbine capacity 3MW, still under construction; Yangjiang Hailing Island offshore wind power project; Zhanjiang Xuwen offshore wind power project jointly developed by the Yuedian Group and the Mingyang Wind Power Co., Ltd. The project is in the operational phase. Fujian: Longyan Putian Nanri Island offshore wind power project, developed by China Guodian Corporation. The project is designed for 400MW, and the first phase reaches 50MW. The tender for 2 test foundations has started from November 2013 till April 2014; National Offshore Demonstration Project Ningde Xiapu A-District project, jointly developed by Fujian Mindong Electric Power Co. ltd, China Energine, Ningde Municipal Government and China Technology Market Association. The total project capacity is 2,000MW, and the phase I with 200MW is already operational; Pingtan Dalian Island offshore wind farm, developed by China Guangdong Nuclear Power Group. In 2013, the project pre-planning started with the feasibility study, which covered the design for wind turbine, tower, electricity and construction. It is expected to construct in Hainan: Lingao offshore wind power project developed by China Datang Corporation, with the intention to install the first 6MW wind turbine nationwide. Hong Kong SAR Consulate General Offshore Wind: The Government offers a higher return rate of 11 per cent to the two Hong Kong power companies (i.e. China Light Power and Hong Kong Electrics) for investment in renewable energy facilities. All wind farm projects in Hong Kong are hosted by these two power companies. Projects (current and past up to 2011): 31

32 The two Hong Kong power companies are planning to establish an offshore wind farm, involving a total of about 100 wind turbines to generate electricity up to 560 million kwh at a total capital cost of about HKD 8 to 10 billion (RMB 6.6 to 8.2 billion). If these plans have been put to operation, the wind farms are expected to meet 1-2 per cent of Hong Kong s total demand for electricity by Hong Kong Electrics (HEC): HEC proposed a wind farm to be located at a 600-hectares site southwest of Lamma Channel, featuring 28 to 35 wind turbines, each being MW, equivalent to 1-2 per cent of the company s annual electricity output. The Environmental Permit was granted on June Expected cost for this project is around HKD 3 million (RMB 2.5 million). HEC has already commissioned one wind turbine with a rotor diameter of 50m with a rated power of 800kw on Lamma Island since February The contract was awarded to Nordex Energy GmbH in December China Light Power (CLP): Offshore Wind Farm Environmental Permit was granted to CLP in 2009 to turn an area of 16 square kilometers to an offshore wind farm in Hong Kong s south eastern water. The wind farm will be designed and built by CLP and Wind Prospect. The farm will have a capacity of 200MW generated by 67 wind turbines 135 meters in height. No firm schedule for wind farm tender invitation as it is undergoing wind data collection process and also the project is subject to Government s approval before work starts. The construction method does not require piling, dredging or drilling into the rock layer of the seabed. Non-reflective paint will be applied to the mechanic parts of the wind farm turbines to reduce impact of reflected sunlight to birds. Standalone Power Supply System CLP is working on the first standalone power supply system, which relies mainly on solar energy generated at Town Island, Sai Kung. This project involves the installation of 900 solar panels and two wind turbines. The first phase of 100 solar panels has been completed. There is no fixed schedule for the second phase of 572 solar panels and two wind turbines. 32

33 Liaoning Province NBSO Dalian Liaoning has a wind density greater than 150W/m2 at a height of 10 meters. The exploitable land area covers roughly 2,100km2. The technically exploitable wind capacity is 2.52GW. The areas with a rich wind resource are along the coastal areas and islands of Liaodong peninsula, as well as in the northwest part of Liaoning near Inner Mongolia. The first wind farm was built in 1994 in the Donggang district in the Wafangdian area. The project used wind turbines from Denmark and the United States. The first MW-level wind turbines were installed at Jiulongdi in Bayuquan in However, between 2000 and 2006 more locally manufactured wind turbines were installed in Bayuqua. Before 2002, wind farm installations were focused in coastal areas or islands of the Liaodong peninsula. Recently, development accelerated in the northwest part of Liaoning, especially the city of Fuxin, has been one of the biggest wind farms in China in recent years. By the end of April of 2013, the total installed capacity in Liaoning was about 5.2GW, wind power generation was about 8 billion KWH. The wind energy has become the second largest energy in Liaoning province, and it seems the wind energy industry has been over capacity. At present, there are no offshore wind projects in Liaoning yet. Dalian has a large gearbox, generator, and wind turbine manufacturing base. Some notable companies are: Huarui Wind Technology Company (part of the Dalian Heavy Industry Group) Huachuang Wind Energy Company GE (Shenyang) Wind Energy Company These three companies are manufacturing above 1MW wind turbines. Shandong Province NBSO Jinan / NBSO Qingdao Shandong Province has rich wind resources and has made great efforts to produce and use wind energy as an alternative for conventional coal energy. The first commercial wind farm was funded with German government loan, and constructed on Changdao Island of Yantai in The total capa city of this project at that time was nearly 23MW. 33

34 In 2012, Shandong was among the top 5 provinces in terms of grid-connected wind power capacity in China, namely 3.82GW from total 66 wind farms throughout the province, accounting for 6 percent of province s total installed capacity. It continued to grow rapidly in 2013, and by the end of October, the wind power capacity already exceeded 4.6GW. In the 12th Five-Year Plan for National Economic and Social Development of Shandong Province, the development of wind energy was highlighted, and large scale onshore and offshore wind farms will be constructed in coastal regions, e.g. Dongying, Binzhou, Yantai, Weifang, Weihai, Qingdao, etc. It also stressed to make sufficient use of mud flat, intertidal zones, and offshore areas to develop wind power. By 2015, the wind power capacity in Shandong is expected to be over 8GW. Main players in Shandong s wind energy sector are not only listed from the China top 5 comprehensive power generation groups: China Huaneng, China Datang, China Huadian, State Grid, and China Power Investment, but also the power groups that focus on clean energy, such as Guohua Wind Power, China General Nuclear Power and Huarun Power. Foreign companies have been very active to provide solutions, equipment and components since early stage of wind power development and construction in Shandong. For example, Nordex, Gamesa, Vestas, Repower, and Suzlon have all participated in wind energy projects in Shandong. However, great progress have been made in technological know-how and manufacturing capability, Chinese suppliers have firmly hold a majority share of equipment procurement in new projects since 2010, and the market share of foreign suppliers in Shandong dropped tremendously. Wind farms in Shandong: Huaneng Hekou Wind Farm, Dongying, 300MW Guohua Zhucheng Wind Farm, Weifang, 250MW Datang Pingdu Wind Farm, Qingdao, 200MW Huaneng Changyi Wind Farm, Weifang, 100MW Datang Yidao Wind Farm, Yantai, 100MW 34

35 Jiangsu Province NBSO Nanjing Jiangsu Province is rich in wind energy potential, especially offshore along its 600 km coastline. The wind speed is above the national s average, while the coastline is less prone to typhoons than the southern coastal provinces. Using its strong industrial base, the province s offshore wind power industry has obtained the leading position in China. Jiangsu government has promoted the development of wind power industry by establishing a wind power equipment R&D platform and a wind power innovation platform. The province has invested RMB 1.1 billion in Jiangsu (Xin Yu) Technical Institute of Wind Power Equipment and Jiangsu (Sinovel) Offshore Wind Power Research Institute. In areas where the wind power industry is concentrated, Jiangsu has built wind power industrial parks in Jiangning (in Nanjing), Liyang and Wujin (in Changzhou), Wuxi, Rudong (in Nantong), Dafeng (in Yancheng), etc. In the coming years, Jiangsu will focus on the development and utilization of offshore wind power, integration of resources, establishment of 10GW of wind power bases in the coastal and offshore areas, to become China s largest offshore wind power industry base. Wind farms In the first quarter of 2013, Jiangsu s total installed capacity was 2,240MW, an increase of 31 per cent compared with The total generating capacity in 1st quarter was 1,199,290Mwh. In 2006 a number of wind power bases have started operations in Jiangsu Province in the coastal region. Some examples of major projects: In 2010, Rudong County, with 106 km of coastline and 70,000 hectares of wetland, has a 30MW Intertidal Experimental Wind Farm, built by Longgyuan, which is the largest intertidal wind farm in the world. In 2010 a tender was completed for offshore wind projects in Binhai, Sheyang, Dongtai and Dafeng with the total capacity of 1,000MW. The projects will be done by Datang, CPI, Longyuan and Shangdong Luneng respectively. In 2012 Jiangsu finished Offshore Wind Power Planning and the Rudong 150MW offshore (intertidal) wind farm was completed.in 2014 Rudong 200,000KW offshore wind project developed by Jiangsu Longyuan. In 2014 construction will start on a project in Rudong for 150MW offshore wind project developed by China Guangdong Nuclear, a project 35

36 in Dafeng for 300MW intertidal wind farm developed by Huaneng New Energy and a project in Xiangshui for 200MW offshore wind project developed by China Three Gorges Corp. In offshore national level wind farms in Nantong and Yancheng will be completed with the total capacity of 1GW. Wind energy industry Jiangsu has about 70 large-scale enterprises in wind power business, including 8 wind turbine manufacturers (all over 1MB turbines), 10 key parts manufacturers and 30 engineering companies. In addition, there are 150 enterprises affiliated to the wind energy industry. In 2010, Jiangsu s wind power industry realized a total output of RMB 71.9 billion. Jiangsu s industry accounts for large market shares in China: high-speed gearboxes (65 per cent), fan blades (58 per cent), hub/support parts (50 per cent) and machine manufacturing (20 per cent). The rapid development of high quality wind farms and wind power equipment industry has attracted domestic wind power machine giants Sinovel, Goldwind and Guodian United Power to establish in Jiangsu. Besides, Jiangsu aims at building up local leading wind power enterprises, such as Nanjing Gear Box, Jiangyin Jixing, Jiangyin Yuanjing and Lianyungang Zhongfu Lianzhong. 36

37 11. NETHERLANDS ECONOMIC GOVERNMENT NETWORK This network provides the following services to Dutch companies: Provision of industry and market information (from small requests to larger individual Business Partner Scans); Support in the match making of trade missions; Provision of connections with the right partners in China for doing business; Support in connecting with local authorities; Identification of market opportunities; Trade promotion. For more information on the services and the activities of the Netherlands Economic Government Network, visit 37

38 12. REFERENCES Rijksdienst voor Ondernemend Nederland (RVO) - National Energy Administration Chinese Wind Energy Association (CWEA) The Renewable Energy Industrial Development Report 2012 Centre for Sustainable Energy - China Daily - China Daily Europe - europe.chinadaily.com.cn/business/ /24/ content_ htm Climate Policy - Clingendael International Energy Programme - publications/2012/201203_ciep_paper_buijs_china_future_new_energy_technologies.pdf Deltares Energy China Forum energychinaforum.com English News - english.news.cn Global Wind Energy Council; 2012 Wind Power Outlook - net Institute of Development Studies; Working Paper (volume 2011, number 377): Competition and Cooperation between Europe and China in the Wind Power Sector - International Energy Agency; China Wind Energy Development Roadmap International Energy Agency - KPMG - pdf Mercom Capital Group; Market Intelligence Report on Wind Energy (July 17 & July 24, 2012) - mercomcapital.com/market_intelligence.php National Development and Reform Commission; Medium and Long- Term Development Plan for Renewable Energy in China - New York Times - global/15chinawind.html?pagewanted=all NL Agency (Ministry of EA, A & I): Offshore wind energy; review of Dutch business activity NL Agency (Ministry of EA, A & I): Sector survey offshore wind energy Recharge News - ece Renewable Energy World renewableenergyworld.com 38

39 The China Greentech Report 2012 china-greentech.com IEEE Power & Energy Magazine November/December 2011; Wind Energy in China - index.html World Bank; The Renewable Energy Law - siteresources.worldbank.org/extrenenergytk/resources/ / /authorized0rel- 1s0Republic0of0China0.pdf Ernst & Young Renewable_energy_country_attractiveness_indices.pdf 39

40 HEILONGJIANG Harbin Urumqi Changchun JILIN XINJIANG Shenyang LIAONING GANSU QINGHAI Xining Hohhot INNER MONGOLIA BEIJING Dalian Tianjin Taiyuan Shijiazhuang NINGXIA Jinan Qingdao SHAANXI SHANXI HEBEI Yinchuan SHANDONG TIBET Lhasa Chengdu SICHUAN Lanzhou Xi an Zhengzhou HENAN JIANGSU Nanjing Nanjing Hefei Shanghai HUBEI ANHUI Wuhan Hangzhou Chongqing ZHEJIANG Changsha Nanchang GUIZHOU HUNAN JIANGXI Fuzhou Guiyang FUJIAN YUNNAN Kunming GUANXI Nanning GUANGDONG Guangzhou Hong Kong Hongkong HAINAN Netherlands Economic Network in China Provincial Capital Province Name Provincial Border 40

41 荷 兰 政 府 在 中 国 的 商 务 机 构 联 系 方 式 荷 兰 王 国 驻 华 使 馆 中 华 人 民 共 和 国 北 京 市 朝 阳 区 亮 马 河 南 路 4 号 电 子 邮 件 : [email protected] 上 海 总 领 事 馆 中 华 人 民 共 和 国 上 海 市 长 宁 区 红 宝 石 路 500 号 东 银 中 心 B 塔 10 楼 电 子 邮 件 : [email protected] 广 州 总 领 事 馆 中 华 人 民 共 和 国 广 东 省 广 州 市 天 河 路 208 号 粤 海 天 河 城 大 厦 34 楼 电 子 邮 件 : [email protected] 重 庆 总 领 事 馆 中 华 人 民 共 和 国 重 庆 市 南 岸 区 南 滨 路 22 号 长 江 国 际 大 厦 33 楼 3362 室 电 子 邮 件 : [email protected] 香 港 总 领 事 馆 中 华 人 民 共 和 国 香 港 湾 仔 港 湾 道 23 号 鹰 君 中 心 2402B 室 电 子 邮 件 : [email protected] 荷 兰 贸 易 促 进 委 员 会 成 都 代 表 处 中 华 人 民 共 和 国 四 川 省 成 都 市 天 府 大 道 1480 号 拉 德 方 斯 大 厦 西 楼 6 楼 电 子 邮 件 : [email protected] 荷 兰 贸 易 促 进 委 员 会 大 连 代 表 处 中 华 人 民 共 和 国 辽 宁 省 大 连 市 中 山 区 同 兴 街 25 号 世 界 贸 易 大 厦 4910 室 电 子 邮 件 : [email protected] 荷 兰 贸 易 促 进 委 员 会 济 南 代 表 处 中 华 人 民 共 和 国 山 东 省 济 南 市 舜 华 路 2000 号 舜 泰 广 场 2 号 楼 3 楼 B1 室 电 子 邮 件 : [email protected] 荷 兰 贸 易 促 进 委 员 会 南 京 代 表 处 中 华 人 民 共 和 国 江 苏 省 南 京 市 鼓 楼 区 湖 南 路 1 号 凤 凰 广 场 B 座 23 楼 2316 室 电 子 邮 件 : [email protected] 荷 兰 贸 易 促 进 委 员 会 青 岛 代 表 处 中 华 人 民 共 和 国 山 东 省 青 岛 市 市 南 区 香 港 中 路 10 号 颐 和 国 际 A 座 2505 室 电 子 邮 件 : [email protected] 荷 兰 贸 易 促 进 委 员 会 武 汉 代 表 处 中 华 人 民 共 和 国 湖 北 省 武 汉 市 建 设 大 道 568 号 新 世 界 国 贸 大 厦 1306 室 电 子 邮 件 : [email protected] NETHERLANDS ECONOMIC NETWORK IN CHINA Embassy of the Kingdom of the Netherlands 4 Liangmahe Nanlu Chaoyang District, Beijing Tel: [email protected] Consulate-General Shanghai 10/F Tower B, Dawning Center, 500 Hongbaoshi Road Changning District, Shanghai Tel: [email protected] Consulate-General Guangzhou Teem Tower, 34/F, 208 Tianhe Road Guangzhou Tel: [email protected] Consulate-General Chongqing Room 3362, 33/F, Yangzte River International Plaza 22 Nanbin Road, Nan an District, Chongqing Tel: [email protected] Consulate-General Hong Kong Room 2402B, 24/F, Great Eagle Centre, 23 Harbour Road Wanchai, Hong Kong SAR Tel: [email protected] NBSO Chengdu 6/F, West Building, La De Fang Si, 1480 Tianfu Avenue, Chengdu, Tel: [email protected] NBSO Dalian 4910 World Trade Center, 25 TongXing Road Zhongshan District, Dalian Tel: [email protected] NBSO Jinan Room B1, 3/F, Building 2, Shuntai Plaza 2000 Shunhua Road Jinan, Tel: [email protected] NBSO Nanjing Suite 2316, Building B, 23/F, Phoenix Plaza 1 Hunan Road, Nanjing Tel: / [email protected] NBSO Qingdao A-2505, Top Yihe International, 10 Hong Kong Middle Road Shinan District, Qingdao Tel: / 17 [email protected] NBSO Wuhan Tower I, Room 1306, 568 Jianshe Avenue Wuhan Tel: [email protected] 荷 兰 政 府 在 中 国 的 商 务 机 构 联 系 方 式 Netherlands Economic Network in China: