Xinping Cheng_Outsourcing_book_temp.qxd 26/02/2010 10:29 Page 43
Manufacturing of Wind Turbine Generator Systems in China
a report by
Xinping Cheng
1,2 1
and Yulin He
1. Department of Mechanical Engineering, Chongqing University; 2. Henan College of Finance and Taxation, Zhengzhou
Wind energy is the most heavily subsidised industry in China. By the industrialisation. This measure aims to support the industrialisation of
end of 2008, 11,638 wind turbine systems had been installed and total wind turbine generator equipment, such that the first 50 wind turbine
capacity had reached 1,217 million KW. While the wind energy generator systems manufactured by eligible enterprises will receive a
industry has developed rapidly in recent years, there have been some subsidy at the standard rate of 600 yuan per KW. The whole generator
problems along the way, such as too many enterprises entering enterprise and the key components manufacturer will share the subsidy
the market.
1
50–50. Many Chinese enterprises realise that the wind energy industry has
a bright future. In recent years, more than 40 whole turbine
manufacturers have entered this market. Many more enterprises areManufacturing Problems in China
The supply chain is a key factor in the development of the wind power planning to invest in this industry, and the competition will become
generation industry. A wind turbine generator system consists of blades, serious. The companies that lose the game will be wiped out. This has the
bearings, a hub, a principal axis bearing, a gearbox, couplings, a benefit of aiding the development of production, but will also affect the
generator, a yawing system, an electrical control system and a tower. steadiness of the supply chain and waste resources. According to NDRC
The parts and accessories are big and heavy. The production process is forecasts, the capacity of wind turbines in China will be 30,000MW in
complex and requires a long-term production cycle. The price is high 2020; however, experts predict a capacity of around 50,000MW by 2015.
and the supply inventory is low. In these conditions, an effective supply In terms of the common output of the manufacturers, five to six
chain is required in order for companies to produce and deliver goods enterprises can meet these demands. There will therefore be furious
on schedule to whole wind turbine manufacturers. There are several competition between companies. Based on overseas experience, only a
problems in developing the supply chain in China, as discussed below.
2
few companies will be able to dominate the market. These companies
should realise and control this risk. On the other hand, there are not
enough components and accessories manufacturers, and supply cannotRelying on Imported Supplies
The bottleneck in the wind turbine generator manufacturing supply meet demand. For example, bearings and flanges are necessary parts, but
chain in China is due to the fact that the key components need to be only a few manufacturers produce them.
imported. Blades and bearings are in short supply. The principal axis
bearings of a 2MW wind turbine are vital components, but they cannot Skill of the Workforce
be produced by Chinese enterprises. The electrical control systems and Until recent years, some universities and technical schools in China
the hydraulic pressure systems are also entirely imported. The output of considered wind power generation a speciality. Because most workers
wind turbines is restricted by the availability of imported parts and do not receive formal education about wind power generation, they
accessories, the cost of wind turbines is difficult to reduce and the cannot finish the tasks to a high quality. When workers assemble the
capacity for wind power generation is restricted by production of wind turbine, they find that they need more knowledge to finish
the principal axis bearings. In the global manufacturing situation, wind the tasks. As for designers, most of them move across from other
turbines are produced near their market. Manufacturers use domestic industries or are recently graduated students, and need more design
resources, such as raw materials and human resources. Foreign practice. The skill of the workforce will affect the quality of the wind
manufacturers will benefit if they set up subsidiary companies in China. turbine and the development of the supply chain.
Technology and ProcessingBlind Manufacturers
Under the Chinese advantage policy, manufacturers who enter the wind Due to the lack of advanced technology and processing, Chinese
power generation industry, under guidance from the National enterprises cannot produce the important components, such as blades.
Development and Reform Commission (NDRC) of China, will receive many China has mastered the technology of blade manufacturing and is able
benefits. First, electricity from windfarms will be wholly purchased under to mass-produce 1.5MW-worth of capacity, but the technology is
the Law of the People’s Republic of China on Renewable Energies. The imported. Chinese enterprises cannot research and develop blades for
law contains eight chapters and plans the development of renewable 2MW turbines because they cannot grasp the core technologies. Another
energy, including investing in resources, technology guidance, price example is the bearings: Chinese enterprises can produce the principal
management, economic incentives and legal responsibilities. Thanks to axis bearing in laboratories but not in batch production because of the
this law, manufacturers have confidence in the wind power industry. high cost. The level of technology and processing required is another
Second, renewable energy projects can receive financial support from the barrier to the development of the wind power industry.
state. Third, 70% of the wind turbine generator systems in a windfarm
must be produced in China. In August 2008, the Chinese Ministry of Quality of Materials
Finance promulgated and implemented a provisional measure on According to the international criteria, a wind turbine should be
administration of a special fund for wind turbine generator equipment designed to run for 20 years at least. A wind turbine must work in bad
© TOUCH BRIEFINGS 2010
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