Wind Turbine Technology

Transfer in Asia

November 2004
Background (1)
„ Advantages of wind energy-clean, renewable
„ Wind turbine technology becomes mature.
„ Government Supports: Reduction in and
exemption from taxes, a decent fixed power
tariff and RPS.
„ A dramatic decrease in the cost of wind
energy
Background (2)
„ Developed countries master the state-of -the
- art technology
„ Technology transfer to developing countries
- increasing not only employment and
revenue in the developing world but also an
increased profit for the developed world
- Substantially reducing the emission of
greenhouse gases and thus promote the
larger scale development of wind power.
Worldwide wind energy
development (end of 2003)
„ Installed capacity up to 40,000 MW,
distributing in about 50 countries.
„ Contributing about 0.5% of the total
electricity consumption
„ Creating more than 100,000 jobs
„ attracting investment up to EUR 8 billion.
 Growth Rate for Worldwide Capacity for
Wind Power (1997-- 2003)

Year New Installed Increase (%) Cumulative Increase (%)

(MW) (MW)
1997 1,568 7,636
1998 2,597 66 10,153 33
1999 3,922 51 13,932 37
2000 4,495 15 18,449 32
2001 6,824 52 24,927 35
2002 7,227 6 32,037 29
2003 8,344 15 40,381 26
Average 34.2 32
 Wind energy installed capacity in
Asia
Country 2001 2002 2003

Installed Total Installed Total Installed Total

(MW) (MW) (MW) (MW) (MW) (MW)
India 234 1,456 220 1,702 423 2,125
Japan 217 357 129 486 275 761
China 54 406 67 473 98 571
South Korea 1 10 4 14 8 21
Others 2 9 3.5 12 0 12

Total 508 2,238 424 2,687 804 3,490

 Top 10 Suppliers in 2003
Top-10 Suppliers in 2003
94.7% of the total market

ENERCON (GE)
14.6% GAMESA (ES)
11.5%
GE WIND (US)
18.0% NEG MICON (DK)
10.2%

BONUS (DK)
6.6%

VESTAS (DK) REPOWER (GE)

21.7% 3.5%
MADE (ES)
Others
NORDEX (GE) 2.9%
5.3% MITSUBISHI (JP)
2.9%
S o urc e : B T M C o ns ult ApS -2004 2.6%
 The general layout for the
wind turbine system

Monitoring and Energy Storage

Displaying

Wind Wind Turbine Electrical Load

Control System Back-up power

source
Grid-connected Wind Turbine
System
„ Wind turbine(s) producing and supplying the
electricity to the power grids, like other
conventional power plants.
„ A wind farm is constructed at a site, close to
power grids and public road, with about 6 m/s
in average and a stable dominated wind
direction.
„ Turbines account for about 70-80% of the
total investment, while the rest is foundation,
grids connection and road construction.
 Wind Turbine Technology
(Grids-connected)
„ Wind turbine technology is complex interplay of lightweight
materials, aerodynamic design and computerized electronic
control.
„ Common features- horizontal axis, upwind and three
blades
„ Power is transferred from the rotor through a gearbox,
sometimes operating at variable speed, and then to a
generator. Some turbines avoid a gearbox altogether by
use of direct drive.
„ Improvements include more powerful rotors, larger blades,
improved power electronics, better use of composite
materials and taller towers.
Structure of a Wind Turbine
Increase in Turbine Size
Off-grid Wind Turbine System

„ Hybrid system-Wind/Diesel/PV for a

village or island

„ Micro Turbines for household

Technology Transfer (1)
„ Key technical know-how: the assembly
of turbines, manufacture of blade and
other main components.
„ Transferring key technologies from
Europe to Asia.
Technology Transfer (2)
Technology investment
„ Foreign party will use technology as equity
and domestic party uses production facilities
and/or cash as equity to set up a joint venture
company (JV) on the manufacture of wind
turbines in a developing country.
„ Sharing profits and risks
„ A long process to complete the technology
transfer.
„ Easy for either party to stop the cooperation.
 Technology Transfer (3)
License production
„ Domestic party purchases a License on
production of wind turbine from its technology
owner, with an initial payment and/or installment.
„ Not a complete technology transfer, with limitation
of market. Not fully owning the technology.
„ Technology licenser shall offer a sufficient
technical documentation, training and instruction.
„ Attractive - Simple + a cheap initial payment
+risks shared.
Technology Transfer (4)
Transfer of technology ownership
„ The purchaser obtains all technical
documentation from the designer on the
certain payment, however normally the
technology is not mature, without
experiences in industrial production.
„ Expert, with a strong subsequent
research and manufacture capability.
„ Taking a great risk
Technology Transfer (5)
Combination of technology with trade

„ Based on a big order, the developing

country obtains a mature technology
from a developed country.
„ Greatly reducing a risk
„ difficult to arrange a huge order (at least
500 MW) to get a decent technology.
Technology Transfer (6)
„ A right partner with a mature and advance
and suitable technology
„ Global giants - direct investment - the
establishment of their solely owned
production facilities.
„ Governments should fund research and
development program to help upgrade
products on the basis the technology transfer.
Indian Wind Energy
Development (1)
„ The fifth largest producer of wind power in the
world.
„ The broad national program includes wind
resource assessment activities; research and
development support; implementation of pilot
projects to create awareness and identifying
new sites; Involvement of utilities and industry;
development of infrastructure capability and
capacity for manufacture, installation,
operation and maintenance of wind turbines;
and policy support.
 Indian Wind Energy
Development (2)
„ Ministry of Non-Conventional Energy Sources (MNES)
„ various incentive policies:
- offer low-interest loan and other financial assistance
-subsidies of 10-15 percent of the total investment
- 100% of depreciation rate for the first year.
-Power corporations are obliged by law to provide the
preferential conditions for wind farms.
-Wind power tariff in a range of USD 0.058 to 0.074/kWh.
-A 100% tax rebate on the income during the first ten years
of operation.
-Local policies
Indian Wind Energy
Development (3)
„ Electricity Act 2003
„ Mandatory minimum percentage of
green electricity requirement under
discussion
„ The target for 5,000 MW by 2012
Indian Manufacture Industry
„ 25% of import duty for complete wind turbines
but 0% for components.
„ 15 manufacturers, with annual manufacture
capacity up to 1,000 MW, and some procure
80-90% of components in India.
„ Today, all installed turbines are made in India.
Indian wind turbines have been exported to
America, Germany, Portugal, Holland and
other countries.
Suzlon Energy
„ a domestic manufacturer with 37.1% of domestic
market share
„ employing about 1,000 people
„ a series of wind turbines up to 2.0 MW.
„ in cooperation with Süwind in the beginning
„ developing several new products
„ subsidiaries in Germany and the Netherlands
„ Owning technologies for key components, and
producing all blades for its own turbines.
„ complying with global quality standard.
„ World Wind Energy Association's award
 China Wind Energy Development (1)
Annual Market Capacity (MW) in China
(based on the signed contracts)

500
450
400
350
300
250
200
150
100
50
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
China Wind Energy Development (2)
Main Premium Policies

„ Utilities are required to connect wind farms to

the power grids at the nearest possible
location and buy all wind electricity
„ Support in renewables was clarified in Law on
Electricity and Law on Energy Conservation
„ VAT for wind generation reduced to 8.5%
„ No participation of wind power in competition
for bid in power generation.
China Wind Energy Development (3)
A Big Potential

„ “Wind Power Concession” is that the local

government will invite both international and domestic
investors, to develop 100MW size wind farms on
potential wind site, through tendering procedure, with
a high requirement for local production. So far, 5
projects under construction and 20 in planning.
„ an ambitious target–4,000MW in 2010, and 20GW in
2020.
„ drafting Law on the Promotion of the Development
and Utilization of Renewable Energy in China
Goldwind - A Chinese
Manufacturer
„ producing 600kW and 750kW turbine, sold
over 300 turbines to domestic market during
last three years.
„ License production with Repower
„ Achieving 96% of local production rate
„ In 2003 the actual sales turnovers amounted
to 115,000,000 RMB, the profit up to
20,100,100 RMB, and the enterprise's total
assets reached to 217,000,000 RMB.
„ developing 1MW turbine of direct drive in
cooperation with a German design institute
Chinese Micro Wind Turbines
„ China - the leader in the installation and
manufacture of micro wind turbines
„ about 250,000 units produced since 1970s.
and exported to more than 20 countries
„ 36 manufacturers, with an annual total
production about 25,000 units.
„ Owning a complete technology, so, it is
possible to transfer the technology to other
developing countries.
 Conclusion
„ Domestic stable and growing market is the
foundation for technology transfer, so, the
government shall issue proper premium policies to
promote the wind power market and local
production.
„ It is crucial to select a right partner with an
appropriate and advanced technology, suitable for
local production.
„ License production is a proper and simple way.
„ it is more important to upgrade future products.