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Investment prospects of wind power market and feasibility analysis of project investment in China

Published:2016/7/15 12:52:44 Source:

Wind power investment outlook
Since 2008, China's power infrastructure investment to accelerate the construction of the structure to speed up the situation, the basic construction of wind power investment increased rapidly, while the thermal power construction investment is a downward trend.
China investment consult company released China wind power industry investment analysis and prospect forecast report (CWIA&PFR)for 2016-2020. It pointed out that wind power development at current stage, the price has competitive advantage compared with coal and hydropower. The advantages of wind power which every increase of one times of capacity, cost will be decreased by 15%. In recent years, world wind power growth has been maintained at more than 30%. With the scale of China wind power installed WTG localization and scaled generated electricity, wind power costs are expected to become lower and lower. Therefore, more and more investors coming to the wind power field to gain more profit.
Investors for wind power project is mainly for the following reasons. Initially, investors are ready to deal with renewable energy quota system (mandatory requirements for thermal power enterprises must have a certain proportion of renewable energy power generation installed capacity). Secondly, China government adjusted the wind power pricing approach once again, the industry becomes profitable.

CWI&APR shows that wind power is a very promising industry, but encourage the development doesn’t mean to push. At present, wind power industry professionals are scarce in China. Only more than 100 technical personnel are engage in wind power generation.

Feasibility of wind power project investment

CWI&APR also pointed out that China southeastern coastal wind resource is rich, the annual wind speed (6m/s) can last up to 4000 hours, per square meter of wind energy can reach 300W. It has development utilization value. Every 1 km of shoreline develop energy to reach 10 MW. China owns 6000km coastline which generate electricity reach 60 GW. It is 4 times than the Yangtze River Three Gorges hydropower Station.


Return on investment

The development of small hydropower stations in more than RMB 5000 per KW. The annual utilization hours number (4-5) * 103hr. If the wind power investment per KW is about RMB 3000, the annual utilization hours count (3-4) * 103h, ROI is considerable. Also operation cost of wind power generation is cheaper than hydropower cost. Tax is also half price of hydropower.

Feasibility analysis of wind turbine generator of a 3000W shows that its payback period is around 3-4 years. When it takes project feasibility analysis, investors should collect the local meteorological data firstly. E.g. the wind speed 6m/s is design standard, if the local wind speed 6m/s last no more than 2000h, it’s not ideal for select 3MG WTG.

Because the wind is changeable, so wind turbines for automatic requirement is high. Micro-computer control system to control the wind power generator speed, motor current and automatic wind direction, automatic adjust the blade angle, grid voltage measurement frequency. The computer calculation judgment is automatic into grid. When breeze, no wind and abnormal electric motor occur, these situation will be automatically removed.