Manufacturers of offshore wind power prices are too low to face challenges

Recently, the results of the tender for the first round of offshore wind power concessions in China were announced. Of the 4 offshore wind power projects with a total capacity of 1 million kilowatts, all the low-priced products were unveiled. The lowest bid price was 0.6235 yuan per kilowatt-hour, and the onshore wind power benchmark price had reached 0.61 yuan. With such low prices and profitability, most industry experts are not optimistic.

It is reported that in the four concession projects for offshore wind farm concessions with a total capacity of 1 million kilowatts in Jiangsu Binhai, Sheyang, Dongtai, and Dafeng, the state-owned China Power Investment Group has invested a minimum of 0.6101 kWh per kilowatt-hour in two projects. Bid price, which is almost equal to land-based wind power. People in the industry agree that "the price of offshore wind power will definitely be lost." Today's lowest bid price of 0.6235 yuan per kilowatt-hour is obviously far from "reasonable."

Previously, commissioned by the Jiangsu Provincial Development and Reform Commission, the China Hydro-Consulting Group East China Investigation and Design Institute conducted preliminary investigations on four projects in Binhai, Sheyang, Dongtai, and Dafeng, and subsequently made a feasibility study report. According to the report, according to the actual conditions of offshore wind resource conditions and equipment, construction, and maintenance of the four project sites, offshore wind farms need to invest around 20,000 yuan per kilowatt-hour, and preliminary calculations based on an internal rate of return of 8% of the capital's capital are required. The tax-inclusive on-grid tariffs of the four wind farms in Binhai, Sheyang, Dongtai, and Dafeng were 1.0620 Yuan, 1.0450 Yuan, 0.9553 Yuan, and 0.9645 Yuan respectively.

At the bidding site in Beijing a month ago, the average electricity price reported by all participating companies was only 0.71 yuan per degree, which was very different from the measured electricity price of the report. "China's wind power companies are still as immature as they were six years ago. Just like they did not know the importance of land-based wind power several years ago, they are now not familiar with offshore wind power," said Li Junfeng, deputy director of the Energy Research Institute of the National Development and Reform Commission at "2010 Beijing International." "Wind Energy Assembly" was expressed.

It is reported that only CNOOC has had years of experience in offshore operations among the companies participating in the first round of offshore wind power concession bidding. However, CNOOC reported more than 1 yuan in electricity prices, which may be worth considering in the market.

In the tender for the first round of 1 million kilowatts offshore wind power concession project in China, Goldwind won the Dafeng 200,000 MW project. Goldwind chairman Wu Gang also admitted to reporters that the bid price is indeed low; if the company wants to achieve profitability, at least 0.8-0.9 yuan per kilowatt-hour.

It is understood that the main costs of offshore wind power include wind turbines, installation costs, maintenance costs, support structures, power facilities, and project management. Due to the special environmental requirements at sea, product technology is more complex and demanding. Zeng Lingling, general manager of wind energy business of Timken Company, which manufactures the main components of the fan, told reporters: “The offshore fan's bearing and onshore fan manufacturing process are different. It requires special packaging and a series of anti-corrosion processes. It's higher than onshore wind turbines."

In the field of construction and maintenance, offshore wind power has higher foundation and maintenance costs than land costs. The cost of land-based wind power foundations is very low, but offshore wind power costs about 24% of the total cost of the offshore wind, and the maintenance cost of offshore wind power also reached 23%. Maintenance and foundation costs directly increase the cost of offshore wind power. The average cost of domestic wind power projects is 8,000 yuan per kilowatt, and the construction cost of offshore wind power is 20,000 yuan.

According to the person in charge of Vestas, the world's largest wind turbine manufacturer, “The price announced this time will put tremendous pressure on the supplier. This price is very challenging; this requires equipment from design to construction, installation and operation and maintenance. To be perfect, that is, the wind power equipment must not be shut down or repaired during operation."

Wuhan Iron and Steel said: “The offshore wind turbine hoisting cost is almost twice as much as on land. If the wind turbine malfunctions in the middle of the road and needs to be shipped back to land for maintenance, the cost of dispatching a barge is almost equal to the total profit in the life cycle of this wind turbine.” It seems that the perfect installation and operation and maintenance, China's wind turbine manufacturers face enormous challenges.