China's Offshore Wind Market Expected to Grow to US$16 billion

        China's Offshore Wind Market Expected to Grow to US$16 billion

Offshore Wind China 2013 to be held in Shanghai this June

PR Newswire

SHANGHAI, Feb. 27, 2013

SHANGHAI, Feb. 27, 2013 /PRNewswire/ --Despite the considerable challenges and
bottlenecks faced by China's offshore wind power market, the country's efforts
in technologies for development of offshore wind power have remained strong.
Thanks to years of coordination and cooperation between the government and
domestic offshore wind power players, the first batch of offshore wind power
license projects, most of which have been idle for more than two years, are
likely to go online in 2013.

So far, Jiangsu, Shandong, Hebei, Zhejiang and Guangdong provinces as well as
Shanghai have completed their planning for offshore wind power development.
Liaoning, Fujian, Guangxi and Hainan provinces as well as the city of Dalian
are currently finalizing their plans. Primary statistics confirm potential
wind resources along China's coasts and waterways capable of producing 43
million kW in output. Preparations for 38 projects with designed combined
capacity of 16.5 million kW in output are already under way.

In addition to technologies and difficulties in construction, offshore wind
power development is still subject to two decisive factors, namely a
well-designed and implemented management system and government policies
governing electricity prices. Considering the heavy investments needed for and
the high risks surrounding offshore wind power development, as well as must-do
improvements in technologies, in management and in the domestic pricing
structure, how far can China's offshore wind power industry advance between
now and 2015?

According to China's 12th Five-Year Renewable Energy Development Plan spanning
2011 to 2015, China's installed wind power capacity connected to the grid is
on track to reach 100 million kW by 2015, including installed offshore wind
power capacity of 5 million kW, while annual electricity generation is
projected to exceed 190 billion kWh, resulting in a complete and
internationally competitive industry chain for wind turbines manufacturing. By
2020, the country's combined installed grid-connected wind power capacity is
expected to reach 200 million kW, including installed offshore wind power
capacity of 30 million kW, while annual electricity generation is forecasted
to surpass 390 billion kWh, making wind power a vital part of the grid in

Some industry analysts expressed concerns around the government's goal of
reaching an installed offshore wind power capacity of 5 gigawatts by 2015. Yi
Yuechun, deputy general engineer at China's Design General Institute of
Hydropower and Water Resources Planning, dismissed these concerns, saying that
in addition to concession projects, several demonstration and other projects
are on the verge of going live. All that is needed is for the government to be
clear about its policies and for the preparatory work in process to come to a
state of completion, and the sector should see a huge acceleration in the
development of the industry.

In fact, China's energy authorities at the state level have had a change of
perspective in terms of how to speed up the industry's development. The New
Energy & Renewable Energy Department of the National Energy Administration
said that they are already mulling over the release of long-term benchmark
pricing for offshore wind-generated electricity, in a move to encourage more
investment in the sector. In addition, companies meeting basic requirements
can file an application with the National Energy Administration, which will
shortcut the process leading to a successful application.

A number China's coastal provinces are either in the process of obtaining
regulatory approval or have already initiated offshore wind power projects. In
Shanghai, Donghai Bridge Project Phase II and Lingang Project Phases I and II
with a combined capacity of 400 MW is soon to come on line. Hebei Construction
& Investment Group and GD Power Development Company will commence construction
of respective 500 MW projects in Hebei province. In Guangdong province, China
Southern Power Grid has received the green light for its project in Zhuhai
while Guangdong Yudean Group has been granted the approval for its project in
Zhanjiang. Combined capacity of both projects is 400 MW. China Longyuan Power
Group is planning a project with 400 MW capacity in Fujian province, with
approval already in hand for the 50 MW-capacity first phase. In addition,
Fujian Investment and Development Group has received the OK for its 50 MW
offshore project in Pinghai Bay, Putian. GD Power Development, China Guangdong
Nuclear Power, China Three Gorges Corporation and Power Construction
Corporation of China are planning projects in Zhejiang province with combined
capacity somewhere between 800 MW to one GW. Several major industry players
including GD Power Development, Datang, China Huaneng Group, China Three
Gorges and CNOOC have projects in the pre-feasibility study phase in Shandong
province, one of three provinces taking the lead in China's development of
wind power. Once new government guidelines concerning the pricing of the
generated electricity prices are released, construction of several of these
projects will commence.

If construction of all the above mentioned projects do start during the 12th
Five-Year period, it will not be difficult for China to achieve the 5 gigawatt
stated goal. Just a few more than ten of the projects already on the books
will be enough to achieve it. The goal is just part of the Chinese
government's focus on offshore wind power development. More importantly,
China's offshore wind power management system will be gradually enhanced
during the process of meeting the goal, with ongoing upgrades to systems,
policies and benchmarks built into the process. In addition, China's
competence in the manufacturing, assembly and deployment of wind turbines also
will be optimized, while the government's policies towards offshore wind
power-generated electricity will become more comprehensive, laying a solid
foundation for the country's offshore wind power development during the 13th
Five-Year period and beyond.

China's offshore wind industry is developing from demonstration projects to
scale-up construction. At this significant moment, OFFSHORE WIND CHINA 2013
will be grandly held again in June 19-21, 2013 at Shanghai New International
Expo Center and Shangri-La's Kerry Hotel Pudong. Organized by Chinese
Renewable Energy Industries Association, National Renewable Energy Center, and
Shanghai International Exhibition Co., Ltd, it has become the No.1 in Asia and
No.2 in world offshore wind trade event.

During the event, leaders from National Energy Administration and provincial
Development & Reform Commissions of China's coastal provinces will visit and
give guidance. Besides, China's Giant 5 wind farm developers will be present.
Led by Sinovel and Vestas, key players in wind industry will enthusiastically
participate in. In addition, many well-developed countries in offshore wind
industry, like Denmark, UK, Holland, Germany and Norway will organize national
pavilions and send experts, scholars and entrepreneurs to gather together for
the development of global offshore wind. The exhibition will cover a wide
range from wind turbine manufacturers, main components suppliers, offshore
installation companies to smart grid, energy storage, etc. The conference will
expect 700 industry professionals, and will invite around 100 speakers to
deliver speeches in 14 various sessions with the international percentage
above 30%. Concurrently, "2013 Shanghai International Distributed Generation
Conference" will be launched. It is designed to build an integrated trade
event consisting of distributed generation, micro-grid and energy storage.

OFFSHORE WIND CHINA is an ideal trade platform for global offshore wind
communication and cooperation. It is aimed to undertake the expectation of
promoting offshore wind progresses and development, to carry the
responsibility of going down into history, and to make contribution to the
dream and glory of a prospering offshore wind Industry.

More information, please contact:

Shanghai International Exhibition Co,.Ltd

Address: 8/F, No. 841, Middle Yan'an Road, Shanghai(200040)
Tel.: 021-62792828
Fax: 021-65455124

SOURCE Shanghai International Exhibition Co. Ltd.

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