ANALYSIS: GE builds supply chain advantage in Chinese offshore

General Electric’s 1GW converter supply deal with Shanghai Electric Wind Power Equipment (Sewind) — part of its fresh push into the global offshore wind market, following its recent acquisition of Alstom — is also the latest indication that development in China’s nascent offshore sector is steadily gaining momentum.

Bloomberg New Energy Finance (BNEF) expects about 1GW of offshore turbines to be installed in Chinese waters this year, with roughly 1.2GW in 2017 — a significant jump from the roughly 500MW installed last year and the 229.3MW erected in 2014.

The GE deal highlights how the strategies of Western OEMs are evolving in line with the growth of the Chinese offshore market, and suggests that the US industrial group has paid close attention to what does and doesn’t work in the country.

Joint