'No money for O&M' in China's 1GW offshore plans

CHINA: Vestas China president Jens Tommerup has said prices paid in China's recent 1GW offshore tender do not leave enough funds for operations and maintenance.

by Jianxiang Yang 15 October 2010

Vestas China president Jens Tommerup
China launched its first round of public tenders for offshore wind farms in May this year. Officials were reported to be disappointed with the bids received.

Tommerup maintained the prices were competitive compared with other countries. However, he added the winners needed to construct the offshore projects carefully to ensure the turbines were reliable.

The tender comprises 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.

The remainder are inter-tidal wind farms located in Dongtai and Dafeng, sizing 200MW each. The four projects attracted 17, 19, 19 and 15 bidders respectively.

The bid winning prices were CHY0.7370/KWH for Binhai wind farm, CHY0.7047/KWH for Sheyang wind farm, CHY0.6235/KWH for Dongtai wind farm and CHY0.6396/KWH for Dafeng wind farm.

Chinese industry officials are inclined to agree with Tommerup. Many believe the tender-winning prices are too low and will hamper the development of China's offshore industry.