China

China

State-owned firms bid low in Chinese offshore tender

CHINA: China has opened the bidding for its first 1GW offshore wind power concession projects with many state-owned companies offering low prices for the tenders.

The Shanghai East Sea Bridge offshore wind farm, so far the largest pilot offshore wind farm project in the country totaling 100MW
The Shanghai East Sea Bridge offshore wind farm, so far the largest pilot offshore wind farm project in the country totaling 100MW
China Power Investment Corporation (CPIC), a leading state-owned power company, offered a lowest bidding price, CHY0.6101/kw, for two projects.

State-owned enterprises were leading actors in the public tender. China’s top five state-owned power companies, i.e., Huaneng, Datang, Guodian, Huadian and CPIC, and their subsidiary new energy companies, participated in the public tender.

As this price approaches the benchmark prices for inland wind farms, industry experts largely believe the winning company will lose money on the offshore projects.

China’s first round of public tender for concession offshore wind farms, initiated in May this year, comprise four projects that are based in east China’s Jiangsu Province.

Two are offshore wind farms, located in Binhai and Sheyang respectively, with an installed capacity of 300MW each. Two other wind farms, inter-tidal projects, are located in Dongtai and Dafeng, sizing 200MW each.

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