Chinese wind turbines manufacturers likely to benefit from Europe’s leaps in wind energy

Chinese wind turbines manufacturers likely to benefit from Europe’s lea ps in wind power. Wind power industry is highlighted with more promising prospect in wake of the worldwide slowdown i n nuclear power development after Japan nuke accident.

European Wind Energy Association (EWEA) announced an investment package of 400 billion Euros in the coming 20 years for applica tion of wind power in Europe. Chinese wind energy equipment manufacture s with strong competitive edge in production cost may benefit from the great development of wind farm plants in Europe.

According to statistics by Donghai Securities, the cost of installation of a wind farm stands at 11,8000 yuan/kw in overseas market, while it stands at 4,000 yuan/kw in China. The cost advantage is obviously favorable for China to export wind turbines in quantity.

In fact, China’s wind turbine export surged 8.8-fold in 2010, and the orders for 2011 in hands show a 6.3 fold growth as compar ed with the export of 2010.

"China’s exports of wind turbines will accelerate in the future, which will further stimulate a fast growth of the wind power i ndustry", said Niu Jigang, analyst with Donghai Securities. Currently, China has 24 listed companies involved in wind turbines equipment manufacturing, such as Xinjiang Goldwind Science and Technology Co., Ltd (002202.SZ), Sinovel Wind Group Co., Ltd (601558.SH), an d Dongfang Electric Co., Ltd (600875.SH).

Sinovel and Goldwind have launched development of 5MW wind turbine. Sinovel is likely to produce the first 6 MW wind turbines with independent technology in China.