China?s State Grid Energy Research Institute and Vestas concludes first part of joint wind energy study

China’s renowned research institution within the energy and electricity industry, State Grid Energy Research Institute (SGERI), and the global wind energy leader, Vestas, have concluded the first part of a “Joint Study on Coordinated Development of Wind Power and the Electricity Grid”.

The study is an important joint initiative in enhancing large scale wind energy integration to the electricity grid, and for proactively exploring solutions for mass integration of renewable energy sources. This initiative has both strategic significance and significance for self-driven knowledge generation.

China is currently the fastest growing wind farm market in the world with more than 13 GW of new installed capacity in 2009 and is expecting to reach at least 120 GW of cumulative capacity in 2020. With this prospective growth, the ability of the electricity grid to absorb the massive electricity flow is critical for a healthy and sustainable development of China’s wind energy industry.

The research project undertaken by Vestas and SGERI brings together international experience coupled with local Chinese expertise to seek to develop a holistic tactical solution to solve the current grid challenges in China.

“As a global player in the wind energy industry, Vestas has substantial experience from many different markets and we have been involved in the developmental challenges, which the local industries have faced. As an integrated part of China’s wind energy industry, it is important that we use our global experience to contribute to the further development and modernization of the China,” says Jens Tommerup, President of Vestas China.

“We are committed to contribute to raise the overall level of wind technology in China, and this very important partnership project with SGERI represents an important step in that direction.”

1. The research project consists of three individual but interlinked studies: researching international experiences of realizing a coordinated development of wind energy and the electricity grid

2. In-depth research on Jilin wind integration and consumption based on the Jilin Wind Project under the WED programme and research into solutions for turbine and wind power plant adaptations to grid requirements

3. Present a strategy for an integrated solution in promoting China’s wind energy and grid development

“Being the soft research and consulting institution in the energy and electricity industry, SGERI is committed to drive the sustainable development of China’s power sector and the establishment of a modern electricity grid, so as to support the implementation of China’s energy strategy and the development objectives for new energy source. We spare no efforts in this constant pursuit,” says President of SGERI Mr. Zhang Yunzhou.

The contributions of this research project to the current grid challenges in China are many-fold, including:

* Wind energy planning
* Wind power plant operation and grid connectivity management
* Specific recommendations on incentive mechanisms and policies for development of wind energy and grid absorption
* Economic frameworks for an aligned and coordinated development of the wind energy industry and electric grid respectively

“Through the cooperation with Vestas, SGERI is hopeful to get inspiration from the sophisticated experience in planning of grid connectivity and operations management of wind energy – by approaching the project from both the technical as well as the managerial perspective, we will explore the optimum strategy for a coordinated development, in order to drive a sustainable and large scale development of wind power,” says Ms. Jiang Liping, Vice President of SGERI.

“The international and domestic expert teams are experienced and the research theme is clear. Apart from senior experts from Vestas, we have also invited the Danish grid operator, Energinet, as well as several European organizations to participate this important research to share advanced international experience in wind energy and development of the electric grid development,” says Ms. Cheng Hong, Head of Government Relations in Vestas China.

The research project was launched in February of 2010 and is scheduled to end in December 2010.

Every single day, Vestas wind turbines deliver clean energy that supports the global fight against climate change. Wind power from Vestas turbines currently reduces carbon emissions by more than 40 million tons of CO2 every year, while at the same time building energy security and independence.

Vestas is the world leader in wind technology, with a history of technological innovation and over 30 years of experience in developing, manufacturing, installing and maintaining wind turbines. Vestas was a pioneer in the wind industry and started to manufacture wind turbines in 1979. In 1987, the company began to concentrate exclusively on wind energy.

Vestas was the first wind turbine company to enter the Chinese market when it installed the first turbines in Shandong in 1986. Vestas has installed wind turbines in thirteen provinces in China and is among the biggest accumulated suppliers of wind turbines.

Vestas has its largest integrated manufacturing complex globally situated in Tianjin, its China headquarters in Beijing, a factory in Hohhot, a global procurement office in Shanghai, and is currently commissioning a new foundry in Xuzhou.

By the end of 2009, Vestas had invested more than RMB 3.5 billion in China and its 3,000 employees are committed to providing wind energy solutions to customers and partners in China. This is a concrete sign of our confidence in the Chinese wind energy sector.

Vestas is working hard to build up a strong value chain in China that can fully support the construction of wind turbines from its factories in China. Every year, Vestas improves its Chinese sourcing capabilities; the aim is to increase the proportion of Chinese-made content. Vestas is known for its industry-leading product quality; all of its suppliers in China are part of a partnership designed to increase product quality and performance and enable suppliers to become globally-competitive. In 2008, one of Vestas’ Chinese suppliers was awarded the Vestas Global Suppliers’ Award for its performance and high product quality.

As the global leader in wind energy, Vestas is committed to helping develop China’s wind energy sector. Vestas is eager to share our 30 years of industry experience and expertise with China.

State Grid Energy Research Institute (SGERI), an wholly-owned subsidiary of State Grid Corporation of China (SGCC), specialized in soft sciences and consulting services, was established on October 25, 2009, based on the soft sciences research group of State Power Economic Research Institute (SPERI). SGERI is dedicated to the study on energy & power related issues for sustainable development of economy and society, and is at the same time serving as a think-tank and exchange-platform for comprehensive energy research.

SGERI’s predecessor, Beijing Water and Power Economic Research Institute was established in 1984 by the former Ministry of Water Resources & Electric Power and then renamed as Beijing Economic Research Institute (BERI) in 1985. In 1999, BERI merged with Power Economic Research Department of Electric Power Research Institute of China into State Power Economic Research Center (SPEC). In 2006, SPEC was renamed as SPERI.

Through years of building up, especially by focusing research on the power industry, and providing services to relevant government ministries, organizations and enterprises domestically and abroad, SGERI has honed obvious advantages in fields such as, power sector planning, energy & environmental protection policy, power supply and demand analysis, corporate strategy and management, institutional reform and power market, accounting audit, power pricing, and energy statistics & analysis and etc, and has thereby forged a team of high professional quality and capability. Ever since its foundation, SGERI has carried out a lot of research relevant to development of China’s power industry, and a batch of outcomes have been adopted by governments and enterprises. Many projects were honored by national authorities.

In order to address the challenges of energy transition in coming future, especially in renewable energy development, SGERI expands its research spectrum to macroeconomics, comprehensive balance of coal, electricity, oil and transportation, smart grid, alternative, low-carbonization of energy on the basis of traditional expertise, to build an influential think-tank and exchange-platform for comprehensive energy research in China and abroad. Committing itself to key issues in energy sector & power industry, SGERI provides decision-making references to government and related stakeholders, and contributes to building an open and interactive platform of communications and exchanges.