Wind Turbine Technology Transfer in Asia

8/8/2019 Wind Turbine Technology Transfer in Asia

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Wind Turbine Technology

Transfer in Asia

November 2004


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Background (1)

Advantages of wind energy-clean, renewable

Wind turbine technology becomes mature.

Government Supports: Reduction in andexemption from taxes, a decent fixed powertariff and RPS.

A dramatic decrease in the cost of windenergy


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Background (2)

Developed countries master the state-of -the- art technology

Technology transfer to developing countries

- increasing not only employment andrevenue in the developing world but also anincreased profit for the developed world

- Substantially reducing the emission ofgreenhouse gases and thus promote the

larger scale development of wind power.


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Worldwide wind energy

development (end of 2003)

Installed capacity up to 40,000 MW,distributing in about 50 countries.

Contributing about 0.5% of the totalelectricity consumption

Creating more than 100,000 jobs attracting investment up to EUR 8 billion.


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Growth Rate for Worldwide Capacity for

Wind Power (1997-- 2003)

Year New Installed(MW)

Increase (%) Cumulative(MW)

Increase (%)

1997 1,568 7,636

1998 2,597 66 10,153 33

1999 3,922 51 13,932 37

2000 4,495 15 18,449 32

2001 6,824 52 24,927 35

2002 7,227 6 32,037 29

2003 8,344 15 40,381 26

Average 34.2 32


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Wind energy installed capacity in

Asia

2001 2002 2003Country

Installed(MW)

Total(MW)

Installed(MW)

Total(MW)

Installed(MW)

Total(MW)

India 234 1,456 220 1,702 423 2,125

Japan 217 357 129 486 275 761

China 54 406 67 473 98 571

South Korea 1 10 4 14 8 21

Others 2 9 3.5 12 0 12

Total 508 2,238 424 2,687 804 3,490


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Top 10 Suppliers in 2003Top-10 Suppliers in 2003

94.7% of the total market

NEG MICON (DK)10.2%

GAMESA (ES)

11.5%

ENERCON (GE)

14.6%

REPOWER (GE)

3.5%VESTAS (DK)

21.7%

BONUS (DK)

6.6%

MADE (ES)2.9%NORDEX (GE)

2.9%

GE WIND (US)

18.0%

Others

5.3% MITSUBISHI (JP)

2.6%So urce : BT M Co ns ult ApS-2004


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The general layout for the

wind turbine system

Wind

Monitoring andDisplaying

Control System

Wind Turbine

Energy Storage

Electrical Load

Back-up powersource


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Grid-connected Wind Turbine

System

Wind turbine(s) producing and supplying theelectricity to the power grids, like otherconventional power plants.

A wind farm is constructed at a site, close topower grids and public road, with about 6 m/sin average and a stable dominated wind

direction. Turbines account for about 70-80% of the

total investment, while the rest is foundation,

grids connection and road construction.


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Wind Turbine Technology

(Grids-connected) Wind turbine technology is complex interplay of lightweight

materials, aerodynamic design and computerized electroniccontrol.

Common features- horizontal axis, upwind and three

blades Power is transferred from the rotor through a gearbox,

sometimes operating at variable speed, and then to a

generator. Some turbines avoid a gearbox altogether byuse of direct drive.

Improvements include more powerful rotors, larger blades,

improved power electronics, better use of compositematerials and taller towers.


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Structure of a Wind Turbine


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Increase in Turbine Size


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Off-grid Wind Turbine System

Hybrid system-Wind/Diesel/PV for avillage or island

Micro Turbines for household


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Technology Transfer (1)

Key technical know-how: the assemblyof turbines, manufacture of blade and

other main components. Transferring key technologies from

Europe to Asia.


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Technology investment

Foreign party will use technology as equityand domestic party uses production facilitiesand/or cash as equity to set up a joint venturecompany (JV) on the manufacture of windturbines in a developing country.

Sharing profits and risks

A long process to complete the technologytransfer.

Easy for either party to stop the cooperation.


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License production

Domestic party purchases a License onproduction of wind turbine from its technologyowner, with an initial payment and/or installment.

Not a complete technology transfer, with limitationof market. Not fully owning the technology.

Technology licenser shall offer a sufficient

technical documentation, training and instruction. Attractive - Simple + a cheap initial payment

+risks shared.


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Technology Transfer (4)Transfer of technology ownership

The purchaser obtains all technicaldocumentation from the designer on thecertain payment, however normally the

technology is not mature, withoutexperiences in industrial production.

Expert, with a strong subsequentresearch and manufacture capability.

Taking a great risk


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Technology Transfer (5)Combination of technology with trade

Based on a big order, the developingcountry obtains a mature technologyfrom a developed country.

Greatly reducing a risk

difficult to arrange a huge order (at least500 MW) to get a decent technology.


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A right partner with a mature and advanceand suitable technology

Global giants - direct investment - the

establishment of their solely ownedproduction facilities.

Governments should fund research anddevelopment program to help upgradeproducts on the basis the technology transfer.


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Indian Wind Energy

Development (1)

The fifth largest producer of wind power in theworld.

The broad national program includes wind

resource assessment activities; research anddevelopment support; implementation of pilotprojects to create awareness and identifyingnew sites; Involvement of utilities and industry;development of infrastructure capability andcapacity for manufacture, installation,operation and maintenance of wind turbines;and policy support.


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Indian Wind Energy

Development (2) Ministry of Non-Conventional Energy Sources (MNES)

various incentive policies:

- offer low-interest loan and other financial assistance

-subsidies of 10-15 percent of the total investment

- 100% of depreciation rate for the first year.

-Power corporations are obliged by law to provide the

preferential conditions for wind farms.-Wind power tariff in a range of USD 0.058 to 0.074/kWh.

-A 100% tax rebate on the income during the first ten years

of operation.-Local policies


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Indian Wind Energy

Development (3)

Electricity Act 2003 Mandatory minimum percentage of

green electricity requirement underdiscussion

The target for 5,000 MW by 2012


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Indian Manufacture Industry

25% of import duty for complete wind turbinesbut 0% for components.

15 manufacturers, with annual manufacture

capacity up to 1,000 MW, and some procure80-90% of components in India.

Today, all installed turbines are made in India.Indian wind turbines have been exported toAmerica, Germany, Portugal, Holland and

other countries.


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Suzlon Energy a domestic manufacturer with 37.1% of domestic

market share employing about 1,000 people

a series of wind turbines up to 2.0 MW.

in cooperation with Swind in the beginning developing several new products

subsidiaries in Germany and the Netherlands

Owning technologies for key components, andproducing all blades for its own turbines.

complying with global quality standard.

World Wind Energy Association's award


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China Wind Energy Development (1)

Annual Market Capacity (MW) in China(based on the signed contracts)

0

50

100

150

200

250

300

350

400

450

500

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005


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China Wind Energy Development (2)Main Premium Policies

Utilities are required to connect wind farms tothe power grids at the nearest possiblelocation and buy all wind electricity

Support in renewables was clarified in Law onElectricityand Law on Energy Conservation

VAT for wind generation reduced to 8.5%

No participation of wind power in competitionfor bid in power generation.


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China Wind Energy Development (3)A Big Potential

Wind Power Concession is that the localgovernment will invite both international and domesticinvestors, to develop 100MW size wind farms onpotential wind site, through tendering procedure, with

a high requirement for local production. So far, 5projects under construction and 20 in planning.

an ambitious target4,000MW in 2010, and 20GW in

2020. drafting Law on the Promotion of the Development

and Utilization of Renewable Energy in China


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Goldwind - A Chinese

Manufacturer producing 600kW and 750kW turbine, sold

over 300 turbines to domestic market duringlast three years.

License production with Repower Achieving 96% of local production rate

In 2003 the actual sales turnovers amounted

to 115,000,000 RMB, the profit up to20,100,100 RMB, and the enterprise's totalassets reached to 217,000,000 RMB.

developing 1MW turbine of direct drive incooperation with a German design institute


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Chinese Micro Wind Turbines China - the leader in the installation and

manufacture of micro wind turbines

about 250,000 units produced since 1970s.

and exported to more than 20 countries 36 manufacturers, with an annual total

production about 25,000 units.

Owning a complete technology, so, it ispossible to transfer the technology to otherdeveloping countries.


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Conclusion Domestic stable and growing market is the

foundation for technology transfer, so, thegovernment shall issue proper premium policies topromote the wind power market and local

production. It is crucial to select a right partner with an

appropriate and advanced technology, suitable forlocal production.

License production is a proper and simple way.

it is more important to upgrade future products.

Documents

Wind Turbine Technology Transfer in Asia