Chinese turbine OEMs will begin making inroads into the wider Asian offshore wind sector within five years – a development already heralded by their progress onshore, said a senior regional industry executive.
Patrick Architta, Asia-Pacific president for renewables consultancy K2 Management, told Recharge that “except if there is a war or a huge political disagreement” it is “not a question of if, it’s a question of when they will perform outside China”.
The supply chain created by China’s massive domestic wind market and the growing ambitions of its large OEMs have led its sector to look abroad for growth opportunities.
“Things are happening first in onshore wind – it’s less complex and you have more volume.”
Architta said China’s “big guys onshore” had now started “aligning on performance warranty and giving significant discounts” compared to western rivals.
“They do have good performance, they do have a good track record.”
Architta added: “Offshore it’s a bit more different – the cycle time is a lot longer.
“We are talking five years’ time. The fact is they are capable, there is a space for everybody.”
The K2 executive said the wider Asian offshore wind sector outside China had recently seen “some frustration” in the pace of evolution of markets such as Taiwan, Japan and South Korea.
“There is a general frustration about the speed at which things are progressing in Asia Pacific in general,” said Architta. “The ambitions are there, the political will is there, we have all the elements – but it’s not going as fast as the ambition.”
The problem is down to the corrective measures to auction and procurement mechanisms being taken in markets such as Japan which, although well intentioned and designed to improve the situation, are moving at a sluggish pace. “These slopes of correction are extremely slow,” Architta said.
Despite the delays in some markets, the K2 executive said the region remains a massive overall opportunity for wind power, especially thanks to the arrival of giant new potential offshore markets in the form of Australia and India.