Shanghai Electric Beats Sinovel to Supply Offshore Wind Farm

Shanghai Electric Group Co., a maker of electric equipment, won a bid to supply turbines to a 100- megawatt offshore wind farm in the city, beating Sinovel Wind Group Co., China’s biggest producer of the equipment.

The winning bid involves supplying 26 wind turbines of 3.6 megawatts each at about 4,790 yuan ($749) a kilowatt, Zhang Bo, senior commercial manager of unit Shanghai Electric Windpower Equipment Co., said today in a phone interview. That’s 1.3 times the average turbine price for onshore wind projects in China in the second quarter, according to Bloomberg New Energy Finance.

Sinovel offered to supply 6-megawatt turbines at 5,298 yuan a kilowatt for the second phase of the East China Sea Bridge wind farm, while XEMC Windpower Co., a unit of Xiangtan Electric Manufacturing Co., bid 8,000 yuan a kilowatt, Zhang said.

China’s goal of installing 30 gigawatts of offshore wind energy by 2020 has prompted turbine makers to develop larger machines. Building work on the project by a unit of China Datang Corp., the nation’s second-biggest power producer, is expected to begin by the end of the year, Zhang said. Datang’s unit also built the 102-megawatt offshore wind project near the East China Sea Bridge in Shanghai, with 3-megawatt turbines from Sinovel.

XEMC’s press office and Wei Xiaojing, a spokeswoman for Sinovel, didn’t respond to telephone calls seeking comment.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.