China tender confirms rules

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Companies bidding to develop the next round of Chinese government wind power concession projects -- three developments totalling 700 MW in north China -- must name their preferred turbine supplier, while the machines used must be at least 750 kW in capacity. The new requirements, introduced for what is the fourth tender issued by China's National Development & Reform Commission (NDRC) but the first since the country's renewables law came into effect at the beginning of the year, are in addition to the mandate that 70% of the machinery must be manufactured in China.

The projects up for grabs from NDRC are big. They include the 300 MW Huitengliang wind farm in Xilin Gol and the 200 MW Bayin wind farm in Baotou, both in the Inner Mongolia Autonomous Region. The third project is the 200 MW Danjinghe wind farm located in Zhangbei, Hebei Province.

Bids will be evaluated under five categories: the kilowatt hour price bid, local content, technology, the company's financial capability and the project's financial spreadsheet. NDRC says that bid price is being downgraded from its previous status as the overwhelmingly predominant deciding factor in selecting winners. The previous 40% weighting given to the bid price is downgraded to around 30%. Winning bids will be announced in August.

Including this latest tender, China's government has offered 2200 MW of concession projects for development since 2003, although plans for the 150 MW Jimo wind farm in Shangdong, put out to tender in 2005, have been put on hold indefinitely after just one bid for the project, considered too high by NDRC, was received (Windpower Monthly, December 2005). China, under its renewable energy law, it is aiming for 30,000 MW of wind power by 2020. By the end of 2005, it had 1260 MW of installed wind power.

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