China

China

SGRE wins rare Chinese order

Siemens Gamesa Renewable Energy has won a turbine order with local power producer Xinjiang TBEA for a project in northwest China in a rare deal for western OEMs in the world's largest wind market.

It is SGRE's second order from TBEA this year
It is SGRE's second order from TBEA this year

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SGRE will supply 42 4.8MW turbines with 145-metre rotors to the project near Changji in Xinjiang province, which is due online in 2020.

The Spanish manufacturer said it is the second order from TBEA in 2019 having previously secured a deal for its 3MW platform.

The order also includes a five-year servicing agreement.

Western OEMs SGRE, Vestas and GE Renewable Energy combined won only 5% of the market share in 2018 as local developers prefer to use domestic manufacturers.

This was particularly noted in the award of turbine deals for the 6GW Ulanqab Wind Power Base in April 2019.

The project was divided up between market leader Goldwind, Dongfang, CSIC Haizhuang, Ming Yang and Shanghai Electric — which owns a licence to provide Siemens Gamesa turbines.

Due to the size of the project and its expected completion date of 2023, western OEMs were confidence of securing some capacity, however there is an added premium of sourcing turbines from foreign manufacturers.

With Ulanqab being subsidy-free, the developer State Power Investment Corporation was conscious of keeping costs down.

There is slightly more hope for western OEMs in the offshore sector, however.

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