Vestas grows wind presence in China

Denmark's Vestas Wind Systems plans to invest $350 million in its Tianjin, China-based subsidiary as it responds to growing demand in China for its turbines, according to reports.

Vesta China has received several large orders for its wind turbines from Chinese companies in recent weeks.

Previous customer China Guangdong Nuclear Wind Power ordered 116 turbines from Vestas. The turbines, expected to produce 100 MW of wind power, are to be delivered in the third quarter of 2009. Its the eighth contract between the two companies, bringing to-date orders to 500 MW.

Vestas also reported sales of 100 MW of turbines in China from two wind power projects in China that the company declined to name. Delivery of the 100 MW of turbines is also expected in the third quarter of 2009.

Through June of 2008, Vestas delivered more than 1,000 turbines to Chinese customers, the company says.

China is a significant market for wind turbine manufacturers. The country had an installed capacity of 5.9 GW at the end of 2007, an increase of 145 percent over the previous year. China is expected to surpass Germany as the leading wind-energy country by the end of 2009 (see China Wind ramps to meet gearbox shortfall).

China's government estimates that the country has a wind potential of 250 GW onshore and 750 GW offshore.

China also has the largest wind turbine manufacturing industry in the world, with more than 40 wind-component manufacturers including Goldwind, Sinovel Wind, Dongfang, Windey and Sewind (see China drives global market, supply for wind). China’s wind equipment market is worth about $8.59 billion annually.

Domestic manufacturing capacity is about 8 GW and is expected to reach 12 GW by 2010, according to a report from the Global Wind Energy Council.

China’s need for electricity is expected to increase by almost five percent a year, and as a result they are expected to be the world's largest electricity-consuming nation by 2030.

Vestas China is located in Tianjin's Binhai District, which is home to nearly 30 wind power producers including Hansen Transmissions and LM Glasfiber.

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