MINGYANG TO BUILD TURBINE PLANT IN SCOTLAND? We know that of all the Chinese wind turbine OEMs, Mingyang is the one that has been actively eyeing UK and European markets, so if their OEM facility — currently listed as one of Scottish Offshore Wind Energy Council’s (SOWEC) Strategic Investment Model projects — does get built, it will be quite a coup. How much cheaper are the Chinese turbines? I’ve heard 30% less. I have no idea to what extent they plan to assemble the turbines in Scotland, but I assume those turbines will be competitive because they are mostly imported from China. I don’t think they will make Europe more energy insecure. I mean, all their solar panels are already from China. Western OEMs have been expecting China to come for them for years and years now, but it’s never really happened. Maybe it’s because wind turbines are more complicated to maintain than solar panels. It’s one thing to set and forget a solar PV project, but each wind turbine contract also leads probably to a 20 year O+M contract. To succeed Mingyang needs more than a cheaper product…they need to build trust. https://lnkd.in/gfCm4vrd
It is not a matter of trust, which is already compromised by the communication policies of China. It's a matter of energy security and independence. Imagine Mingyang and Goldwind entering European market with a 70% price of European manufacturer...it is matter of time for every European manufacturer go bankrupt, then having as a direct consequence a Chinese monopoly within Europe...even worst than the actual dependency on Russian oil and gas. On top of that, it's well known that these Chinese manufacturer have subsidies from Chinese government, this posing an unfair competition with respect European makers. So, it is much more complicated than dominating the market, among other things
While everyone has raised valid concerns about geopolitical issues, one key point being overlooked is that the pre-assumed '30%' savings is impossible to achieve with local production. Consider the costs of land, labor, and energy for any product. For the sake of argument, let's assume it reduces costs by 10%. Would you risk your long-term investment given the reliability needed to recoup your investment? These discussions will continue without any concrete outcomes in this direction, but they're fun to talk about.
Wind turbines are mechanical stuff and wind farm projects have more risks than solar ones. So they need a carefully planned guaranty, warranty and O&M contract.
My question is this. Is there any doubt that the CCP will imbed in the software a kill switch or any other means to shut down the Wind Turbines to get what they want. The way to end the CCP is to stop doing business with any entity associated with them. Economic starvation will be what collapses that country.
My former colleagues have worked tirelessly to secure this opportunity for Scotland. If Mingyang wasn’t Chinese then we wouldn’t be having this conversation at all…
is it true Mingyang and Goldwind each get one wind farm in South Korea?
According to BNEF, Chinese-manufactured wind turbines delivered outside China are now 20% cheaper than those from US and European manufacturers. Apart from building trust that is definitely a key factor, keeping up with sustainability criteria that is coming into play more and more in European wind market is something yet to be seen.
Easy solution, refuse to do business with them.
Business Leader, Renewable Energy ( Wind and Solar), Power Generators, PPAs, Contracts. New business setup and turnaround strategist, P&L responsibility serving IPPs, EPCs, C&I across APAC regions. Creating Green Planet.
2wIt's not the cheap which sells. Turbines have to perform for 20 years. OEMs making cheap quality turbines can make me initial kills in new markets, but don't sustain after the commissioning of their cheap turbines, as performance of cheap turbine surfaces. Many IPPs and investors have fallen for cheap turbines which shows short IRR as well ROI, but fail to perform in country specific weather conditions. After such experiences, buyers are now able to differentiate between cheap and quality.