Sinovel Wind Group Co. (601558) and Xinjiang Goldwind Science & Technology Co. (002202), China’s biggest makers of wind turbines, forecast a difficult 2013 after reporting a decline in sales in the third quarter.
“China’s wind market will be a bit arduous next year as it demands quite a process to cope with grid constraints, slowing growth and economic environment,” Han Junliang, chairman of Sinovel, said at a conference in Beijing on Nov. 16.
Goldwind also predicts tough market conditions as “difficulties accelerate,” Chief Executive Officer Wu Gang said at the China Windpower Conference the same day. The two companies, which together account for a quarter of China’s wind market, have posted losses in the three months ended Sept. 30. Sinovel’s sales plunged 82 percent and Goldwind fell 42 percent.
China, the biggest market for the companies, will for the first time post a 20 percent drop in annual installations to 16.4 gigawatts this year. It will add 16.3 gigawatts of wind farms in 2013, Bloomberg New Energy Finance said in a Nov. 14 report.
Chinese regulators implemented a stricter approval process for on-land projects in 2011 as grids struggled to carry electricity generated from wind-energy installations. The nation had 10 billion kilowatt-hours of electricity from wind farms unused last year and the number may grow this year, said Qin Haiyan, secretary general of the Chinese Wind Energy Association.
“Sinovel has relied heavily on orders from large wind bases in northern Chinese provinces, and these have been most severely affected by grid-related delays and the tighter permitting rules,” BNEF analysts led by Justin Wu wrote in the report.
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