Post on 16-Jan-2015
description
By ZHAO Tian, LI Guang,ZHU ShengFudan University
Rubicon Team
Outline
External Environment 1 Market Analysis
&SWOT 2 Proposed Strategies3
Strategy Goal, Goal Decomposition and Strategy Directions
Roles Sites & Modes
Manufacturer? Investor?
S1: Positioning in Value Chain
Case Study 1: AES’s success
in a CDM Projects
Case Study2:How SK entered
Petro IndustryIn China
2nd Tier Region Off-grid Power
S2: Combination of Carbon-free Industry
and Off-grid Wind Power
SK Vision:Sharing Happiness When
Butterfly Meets Wind
Background
Policy Overview
Conclusion: Wind energy industry is very promising in China.
Profitability
Market Size
Industry Analysis
SWOT Analysis
Conclusion: SK Energy could join hands with players in industry to seize great opportunities in the vast and growing market.
1
Outline
Profitability
Market Size
Industry Analysis
Strategy Goal, Goal Decomposition and Strategy Directions
External Environment 1 Market Analysis
&SWOT 2 Proposed Strategies3
SWOT Analysis
Roles Sites & Modes
Manufacturer Investor
S1: Positioning in Value Chain
Case Study 1: AES’s success in CDM Projects
Case Study2:How SK enter Petro Industry
In China
Tier-2 Region Off-grid Power
S2: Combination of Carbon-free Industryand Off-grid Power
SK Vision:Sharing Happiness When
Butterfly Meets Wind
Conclusion: SK Energy could join hands with players in value chain to seize great opportunities in the vast and growing market.
BackgroundChina is in need of renewable energies in future.
Wind energy development is booming around the world.
Wind energy is a promising industry in China.
Policy OverviewPolitical will fuels wind energy industry in China
2
Increasing Demand for Energy in China
Traditional Energy
With modern industrialization around the world, energy crisis is becoming more and more manifest. The scarcity of traditional energies and negative impacts on the environment are becoming a global concerns.
Negative impacts of traditional energy
CO2 Emission leading to global greenhouse effects.
COIncomplete burning of oil and coal, resulting in toxic gases emission.
SO2Resulting in acid rain, causing damage to the eco-system.
Dust Increasing risk of Respiratory Disease.
NOX
Severely poisonous, giving rise to risks of lung cancer and other diseases
China is in need of renewable energies!
3
Electricity’s Demand Growth, Supply Growth (Net CapacityIncrease) and Generation Hours under Optimistic Expectation
4860
5250
54605411
5221
50155069
5194
5359
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2002 2003 2004 2005 2006 2007 2008 2009E 2010E
4400
4600
4800
5000
5200
5400
5600
5800
Demand Grow th Supply Grow th Pow er Generation Hours
Source: China Galaxy Securities, 2008 Energy Insight
Growing industries along with economic development in China strongly carry the electricity market forward.
With improving life qualities in China, living electricity drives the demand going up.
Economic reconstructions push the application of renewable energies in China.
Key Factors Affecting Demand
Background
Proposed StrategyMarket Analysis and SWOTExternal Environment
Wind energy development is booming around the world.
Trend of Wind Energy Exploitation around the World
Country Share of New Installed Capacity 2008
All Source: World Wind Energy Report 2008, Global Wind Energy Council
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E2010E
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Total Installed Capacity MW Incremental Capacity MW Increment Growth MW
World Total Installed Capacity and Incremental Capacity MW
0 5 10 15 20 25 30
USA
Germany
Spain
China
India
Italy
France
UK
Denmark
Portugal
2007 2008
Installed Capacity: Top 10 Countries MW
Background
Summary
Proposed StrategyMarket Analysis and SWOTExternal Environment
Worldwide capacity reaches 121,188 MW, out of which 27,261 MW were added in 2008.
Wind energy continued its growth in 2008 at an increased rate of 29 %.
China continues its role as the most dynamic wind market in the year 2008.
4
Energies Overview
2000
2020E
Source: China Galaxy Securities:
Energy Structure in China
Wind energy is playing a more important role in China
Background
Reliable, affordable and clean.
Immense storage, easy access, and low marginal cost. .
Wind projects under stable policy frameworks are less affected by the credit crunch than higher-risk investments.
Wind energy is the answer to both the environmental and financial crisis!
2010E
Proposed StrategyMarket Analysis and SWOTExternal Environment
0
20
40
60
80
100
120
140
2005 2006 2007 1H 2008
Wind Others Small Hydro Large Hydro Nuclear Coal
1.18%1.80%
2.08%
0.74%
China Annual Capacity Add Additions and Wind Energy Growth GW,%
Source: China Galaxy Securities, 2008 Energy Insight
China’s electricity demand growth (9% to 10% annually) has created a capacity gap.
Wind is evolving as one of China’s top four technology options for new capacity.
With coal-fired electricity prices rising, wind is becoming more cost-competitive.
Growing Wind Energy
Advantages of Wind Energy
5
2006.1
2006.10
2007.8
2008.1
2008.4
Political will in China is striving for propelling wind-power market
Political Will Fuels Wind Energy Industry in China
Proposed StrategyMarket Analysis and SWOTExternal Environment
Renewable Energy Law
Established the framework of the national exploitation of clean energies. 3 principles on wind were proposed:
Implement fixed pricing to wind electricity power.
State Grid unconditionally purchases the wind electricity. Price gap would be shared among the grid.
The state establishes fund to support wind power development financially.
Market Open Policy
Long-term planning for the development of renewable energy
Make the wind power market more competitive and open.
Take advantage of coastal areas and inland wind resource.
Targeting at a capacity of 5 MkW and 30 MkW in the year 2010 and 2020 respectively.
To form the wind-power center in several provinces such as Inner Mongolia, Jiangsu, Shandong and Liaoning.
Tax and Tariff ReductionThe Ministry of Finance further reduce the tax imposed on the wind-energy companies.
National Customs cut down tariff on importing advanced wind power technologies and equipments.
Financial Support
National Development and Reform Committee improve the standard of subsidies and lower the qualifications of the companies to acquire loans from the bank and funds.
Price Reform
NDRC set the bottom line for the auction price of biding for the permission to exploit wind energy to avoid malign competition and attract more foreign investments.
6
Policy
Policy
State Stimuli for Wind Energy Just Revealed
Proposed StrategyMarket Analysis and SWOTExternal Environment
China’s new energy promotion plan, focusing on wind power
7
2009.5
•China also promised to propel the R&D of the key turbine components; allocate more funds to aid the promotion of wind power technology.
•Financial crisis provides a great opportunity to adjust the energy structure in China, aiming at reducing the emission and improving energy utilization.
•News reported that from 2009, government will bolster more wind electricity bases at the ten million kilowatt levels vigorously in 10 more years in provinces such as Gansu, Inner Mongolia, Hebei and Jiangsu.
News Source: Xinhua
•According to the plan, the state will invest about 3,000 billion on the development of renewable energy, in which wind power will benefit most. The wind electricity price and the bidding policies are also will be discussed to improve the overall profit and open the market.
China is ready to develop wind energy!
Outline
Background Strategy Goal, Goal Decomposition and Strategy Directions
External Environment 1 Market Analysis
&SWOT 2 Proposed Strategies3
Policy Overview
Roles Sites & Modes
Manufacturer Investor
S1: Positioning in Value Chain
Case Study 1: AES’s success in CDM Projects
Case Study2:How SK enter Petro Industry
In China
Tier-2 Region Off-grid Power
S2: Combination of Carbon-free Industryand Off-grid Power
SK Vision:Sharing Happiness When
Butterfly Meets Wind
Conclusion: Wind energy industry is very promising in China in future.
The wind energy market in China is vast, exploitation remains unbalanced
Return of wind energy will become more Profitable in near future.
Overview of different players in the Industry.
Profitability
Market Size
Industry Analysis
SWOT Analysis
8
Chief Distributions of Wind Energy in China 107W
Year 2007-08 Installed Capacity Increments 106W
Source: China Investment Annual 2005
Inner MongoliaXinjiang
HeilongjiangGansu
JilinHebei
Shandong
JiangxiJiangsu
GuangdongZhejiang
FujianHainan
0 2 4 6
Inner Mongolia
Liaoning
Hebei
Jilin
Heilongjiang
Jiangsu
Gansu
Xinjiang
Shandong
GuangdongFujian
ZhejiangHainan
3.9
2007
2008 Increments
Source: China Wind Energy Association 20092.61.30
Fastest Growing %
Hainan 568.97Zhejiang 311.04Liaoning 142.52
Inner Mongolia 138.93Hebei 126.00
Tier 1Tier 2
Chief Distribution and Exploitation of Wind Energy in China
Source: China Wind Energy Association, Century Securities
Energy DistributionChina’s wind power resources mainly distribute in the eastern coastal areas and “Three-North Region” - Northeast, North China and Northwest.
Inland wind resource is larger than that of coastal areas. The risk of onshore investments are lower than those of offshore projects
Wind energy market in China is vast, exploitation remains unbalanced.
0
5000000
10000000
15000000
2000 2001 2002 2003 2004 2005 2006 2007 20080.0%20.0%40.0%60.0%80.0%100.0%120.0%
Total Capacity MW Total Grow th
Current Exploitation
China’s Total Installed Capacity and Total Growth
Investment on Wind Energy has been increasing exponentially in China at nationwide scale.
The wind resources of eastern coastal areas remain unexploited compared to the “Three-North Region”.
The markets of Tier-2 districts, with more potential to develop, grow much faster than that of Tier-1 districts.
Proposed StrategyMarket Analysis and SWOTExternal Environment
9
Market Size
Estimated costs of Wind and Coal Energy
0.5
0.4
0.7
0.6
0.3
0.2
0.1
02000 2005 2010E 2015E 2020E
Wind Energy Coal
Source: Wind Energy 12 in China, China Galaxy Securities
No. Name of wind plantsHighest
PriceYuan
1 Inner Mongolia ZhuRihe Wind Farm 0.609
2 Inner Mongolia Shangdu Wind Farm 0.609
3 Hebei Zhangbei Wind Farm 0.984
4 Xinjiang Danban City No.1 Wind Farm 0.533
5 Liaoning Donggang Wind Farm 0.915
6 Zhejiang Cangnan Wind Farm 1.200
7 Hainan Dongfang Wind Farm 0.560
8 Guangdong Nanao Wind Farm 0.740
9 Shanghai Chongming Nanhui Wind Farm 0.773
Average Price 0.769
2nd Tire
1st Tire
The price of grid-connected wind electricity is greatly affected by the government’s policies.
Price Differentiation and Cost Trends
The price of grid-connected wind electricity by province (Highest)
Current Pricing and Cost
In the current market the average price of electricity generated by wind farm is still higher than that of coal. The price disadvantage is the main barrier constraining further development of wind energy market.
Future Prospect
In 2020, the estimated cost of wind electricity the cost of coal electricity, which will stimulate the widespread application of wind power.
The application of CDM in joint venture projects could make wind electricity more competitive by generating extra revenue from CERs. Return of wind energy
will become more Profitable in near future.
Proposed StrategyMarket Analysis and SWOTExternal Environment
10
Profitability
Turbine Manufacturers
Brand Manufacturer
Capacity (kW)
% of domestic and joint venture
capacity
% of increased
total capacity
Sinovel 华锐 1402500 29.71% 22.45%
Goldwind金风 1131750 23.98% 18.12%
DEC东汽 1053000 22.31% 16.86%
Market share of Domestic and Chinese-foreign joint venture turbine manufacturers in 2008
Brand Manufacturer
Capacity (kW)
% of foreign owned
capacity
% of increased
total capacity
Vestas 599700 39.30% 9.60%
Gamesa 508300 33.31% 8.14%
GE 145500 9.53% 2.33%
Market share of foreign owned turbine manufacturers in 2008
Brand Market status Main focus
Guodian (Longyuan)
A specialized wind powerdevelopment company owning the largest shares of installed wind power capacity in China.
Three North Region, Southeastern China. Case study: Jiangsu Rudong Wind Power Concession Project
Datang
Rank No.2 in China wind market ownership. With great impact in the Northern China electricity market.
Northern China. Shanghai. Case Study: Shanghai Donghai Bridge Offshore wind farm.
Huaneng
The largest independent electricity generator in Asia. With solid government background.
Inner Mongolia, Shandong, Sichuan, Guangdong, Case Study: Huaneng Zhaobei Wind Farm
State Generators Top 3 State generators in wind market
Summary of turbine manufacturers in China
Sinovel, Goldwind and DEC capturing more than 57% of the market. Vestas, Gamesa and GE dominating among foreign manufacturers.
With ambitious wind targets, state generators are harnessing strong capacity and political will to carry the market forward.
All Source: China Wind Energy Association
While turbine assembly manufacturing booming, key components witnessing shortage.Chinese OEMs to dominate supply market in the long term.
Foreign entrants are seeking a foothold through near-term partnerships, with exploration targeting long-term pipeline activaties.
Proposed StrategyMarket Analysis and SWOTExternal Environment
Summary of state generators in China
11
Industry Analysis
•Success in KoreaBellwether in the wind industry of Jeju Island, South Korea. Achievement in various energy fields around the world.
•Green Ocean Strategy.Bring happiness to people by implementing SRI in green energy field.
•Robust Financial AbilityFortune 500 Company and high reputation in China.
•ExpertiseSeveral wind blade patents, abundant knowledge of China’s energy market
•LocalizationLocalization of the business in China to be improved,developing coordination with the domestic companies and local government.
•PolicyThe regulation of foreign capital to enter the energy industry
•Market ShareInsufficient infrastructure and facilities in China compared with the professional wind power companies, such as GE, Vestas, etc..
Strength Weakness
Opportunity•DemandAn answer to the world energy crisis and China’s rapid development
•CompetitorThe low quality of domestic wind-energy investment companies.
•Nationwide SupportAttention of government on the clear energy and favorable policies towards .
Threat
•Financial CrisisFinancial Crisis world widely impairs the process of huge investment for lack of the liquidity.
•Entrance CostHigh cost of the wind power and subordinated negotiation power when coordinated with State Grid.
•Technological UncertaintiesSome pending technological problems such stabilization of the grid due to the high levity of wind power.
Proposed StrategyMarket Analysis and SWOTExternal Environment
12
SWOT Table
Outline
Background
Profitability
Market Size
Industry Analysis
Strategy Goal, Goal Decomposition and Strategy Directions
External Environment 1 Market Analysis
&SWOT 2 Proposed Strategies3
Policy Overview
SWOT AnalysisRoles
Manufacturer? Investor?
S1: Positioning in Value Chain
Case Study 1: AES’s success in CDM Projects
Case Study2:How SK enter Petro Industry
In China
SK Energy could expand his roles in the value chain and create additional value.
Conclusion: Wind energy industry is very promising in China in future.
Conclusion: SK Energy could join hands with players in value chain to seize great opportunities in the vast and growing market.
13
GoalTo enter China’s wind power market and implement “Green Ocean” strategy by investing in wind energy market of China.
To cut down the cost and gain a higher profit
To choose a niche market to enter and boost its share
(Social Responsibility Investment) To secure its position as a top global “Low Carbon, Green Growth” company, to create and share happiness with Chinese people.
Market
Profitability
SRI
To be a pure turbine manufacturer or a Wind Farm Investor?
To find a new wind-farm new potential areas and model
Criteria Evaluation
The difficulty to enter the market
Current market share
The technology advantage
The number of core technology patent of main turbine manufactures
The trend of the market development
The share of different types of the turbine company in different years
•The exploitation of wind-resources is unbalanced.
•The current prevailing grid-connected model has faced with a lot of problems such as high cost, difficulties to sustain the stabilization of the grid and so on.
1.Goal Setting 2. Decompositionof the Goal 3. Strategy Directions
Proposed StrategyMarket Analysis and SWOTExternal Environment
14
Strategy Goal, Goal Decomposition and Strategy Directions
A turbine manufacturer or a wind-farm investor?
0%
20%
40%
60%
80%
2004 2005 2006 2007 2008
Domestic(Joint Venture) Foreign Investors
Wind Equipments Market Share in China (Domestic and Foreign Investors)
The market share change for foreign manufactures is declining in recent years and domestic companies have lead the turbine manufacturing industry.
Rank Institute NamePatent
NumbersOriginal Country
Business Realm
1 GE 211 U.S.Electrical
Manufacturing
2 Mitsubishi 211 JapanElectrical
Manufacturing
3 (Person) Wobben Aloys 141 GermanyWind Power Generation Equipments
4 Vestas 93 DenmarkWind Power Generation Equipments
5 REpower System 63 Germany Wind Turbine
6 LM Glasfiber 56 Denmark Turbine Blade
7 Siemens 48 GermanyElectrical
Manufacturing
8 Ebara 47 JapanFluid Conveying
Equipment
9 Fuji Heavy 47 JapanElectrical
Manufacturing
10 Gamesa 52 Spain Wind Turbine
Top 10 Institutes (People) with Most Patents in Wind Energy Technology in DII Database
SK doesn’t have a technology advantage when competing with these industry leaders.
It is not the proper time for SK to become a turbine manufacturer in China. SK could use its great capital power to invest in the construction of wind farms.
Proposed StrategyMarket Analysis and SWOTExternal Environment
Source: DII Database
15
Proposed Strategy 1: Positioning in the Value Chain
Va
lue
Ch
ain
Po
sit
ion
ing State
Generators
Chinese Developers
Foreign Entrants
State Generators
Chinese Developers
Chinese Developers
Foreign Entrants
Local players seeking technical expertise
The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing companies from industrialized countries to invest in projects that reduce emissions.
By applying CDM joint venture projects on clean energies become possible in China.
The Permitting Negotiations are usually local, complex and highly project-specific.
Foreign entrants seeking cooperation with the state generators under momentum policies.
State Generators and Chinese Developers lack of expertise and advanced technology.
Consultancy through value chain is in need on issues like site acquisition, components manufacturing, CDM applying.
Foreign players seeking vertical integration(ownership limited to 49% for CDM qualification)
SK Energy could expand his roles in the value chain and create additional value.
Proposed Strategy 1: Positioning in the Value Chain
SiteAcquisition
TechnicalDevelopment
PermittingNegotiation
Financing EPC Operation
Proposed Strategy 1: Positioning in the Value Chain
State Generators
Proposed StrategyMarket Analysis and SWOTExternal Environment
16
Case Study 1: AES’s role in a CDM Project
Proposed Strategy 1: Positioning in the Value Chain
Project Title: Guohua Hebei Huanghua 49.5 MW Wind Farm Project (Phase I)
Completion Date: 24th December 2008
What SK may do
ProjectProcess
Outcome
About: AES operates 132 power generation facilities worldwide.
Investor
Equity share: 49%
Guohua AES (Huanghua)Wind Power
Co. Ltd.
Consulting
Merrill Lynch Commodities
(Europe) Ltd.
Project Guohua 49.5 WM Wind Farm Project
(Phase I)GE, Vestas, Sinovel
Completion date: 12-24-2008
Invest via CDM Turbine SupplierFunding
Wind Energy Sells to
Yearly Capacity: 99,160WMhNorth ChinaPower Grid
•33 wind turbines with the unit capacity of 1500kW and total capacity of 49.5MW.
•Generating greenhouse gas (GHG) emission reductions by avoiding CO2 emissions from traditional energy, and will contribute to sustainable development of the local community and the host country by reducing green house gas (GHG) emissions of 106,647 t CO2 per year.
Financial Indicator for the Proposed Project
IRR (Total Investment) Benchmark Rate = 8%
Without CDM Revenue 6.24%
With CDM Revenue 9.58%
All Source: United Nations Framework Convention on Climate Change
CDM is a good way for foreign entrants to invest in the wind energy market in China which would greatly reduce the cost.
AESCompany
Proposed StrategyMarket Analysis and SWOTExternal Environment
17
Case Study 2: SK successfully Knocked the Door of China’s Petrochemical industry
Background:
•Petrochemical industry is the core and strategic industry that Chinese government always wants to keep strong control of it, which impeding the foreign energy companies’ entrance.
•SK tried hard to enter China’s Petrochemical industry, finally succeeded via Sino-South Korea relations.
SK’s Trial
SK’s Good Relationship with Governments
Studied the planned Petrochemical programs in China, Seeking more commercial opportunities.
2006.4
Negotiated with Hubei Province Government on the 0.8 million tons Ethylene projects.
2008.5
No break-throughs were made
1990
Firstly settled its business in china
1992
Establishment of diplomatic relations. SK as a bridge.
2008
The director of SK accomplished the South Korea president’s official visit to China several times.
What Can We Learn?
well preparation and careful planning
good relationship and coordination
+ = Win-win solution for wind energy in China!
Good relationship and coordination play an important role in the trial of SK to knocks the door of China wind energy!
Connecting two countries
Other competitors competed for the projects
0.8 million tons Ethylene projects
in Wuhan
Proposed Strategy 1: Positioning in the Value Chain
SK Energy, SinopecJoint Venture35% Equity
Before 2006
Proposed StrategyMarket Analysis and SWOTExternal Environment
South Korean President’s official visit to China; SK got approval of the project.
2008.5.27
18
Outline
Background
Profitability
Market Size
Industry Analysis
Strategy Goal, Goal Decomposition and Strategy Directions
External Environment 1 Market Analysis
&SWOT 2 Proposed Strategies3
Policy Overview
SWOT AnalysisSites & Modes
Tier-2 Region Off-grid Power
S2: Combination of Carbon-free Industryand Off-grid Power
U-Eco Cities in Northernand Southern China
Conclusion: Wind energy industry is very promising in China in future.
Conclusion: SK Energy could join hands with players in value chain to seize great opportunities in the vast and growing market.
19
Site Acquisition: Tier-1 Vs. Tier-2
Tier-2 areas are more promising than Tier-1 areas.
Mode: Grid-Connected Vs. Off-Grid
Grid-Connected Mode
More prevailing, applied in most of current projects.
Wind electricity should consolidated to the State Grid.
Difficulty to maintain the stabilization of the grid High cost (0.5-0.6 yuan/kWh)
Off-grid mode is more promising than grid-connected mode.
Proposed Strategy 2: Site and Mode Selecting
Off-Grid Mode
More and more mature
Serves directly for the large scale industry base
Increasing Government Attention
Low cost(0.05-0.06 Yuan/kWh)
Tier-1: “Three North” Areas
Market is relatively saturated.
Increasing rate reaching bottleneck
Disadvantageous Price
Lack of Industrial Integration
Tier-2: Costal Areas
Remain Relatively Unexploited
Faster Growth
Higher Electricity Price
Denser Industrial Bases
Advantages
Proposed StrategyMarket Analysis and SWOTExternal Environment
1
2
20
Proposed Strategy 2: Site Acquisition and Mode
Shandong
Northwestern Hebei Base
Middle-southern Liaoning PeninsulaBase
Combine the off-grid wind-power industry with the development of Tianjin Binhai New District and the strategy of Revitalizing the Old Industrial Base in Northeast China. Reduce the CO2 and other toxic material emission.
Built Farms
FarmsUnder-Construction
The market is incompletely exploited; SK has an opportunity to seize!
Hebei
Liaoning
Tianjin
Why Bohai-Rim District?1Integration of Off-Grid Wind Power with
Revitalizing the Old Industrial Base
U-Eco City in Northern China
Long history of industries development, mainly energy-hungry heavy industriesFirm support from the local government Sound foundation of wind-power development
0
10
20
30
40
50
60
70
80
2000 2001 2002 2003 2004 2005 2006
Hebei Liaoning Shandong
’97-’06 Bohai-Rim District Wind Energy Installed Capacity 104W
Booming Capacity2
3
Steel, Raw material, Petroleum Fine Chemical, electrolytic aluminum, Chlor-alkali, seawater hydrogen manufacturing industries. Important ports as Qingdao and Dalian.
Eastern Shandong Peninsula Base
Proposed Strategy 2:
Proposed Strategy 2: Off-Grid Wind Power in Bohai-Rim Industrial Bases
Proposed StrategyMarket Analysis and SWOTExternal Environment
Applicable Industries
21
The Combination of Off-Grid Wind Power with Two Industrial Bases
Zhejiang
Jiangsu
Combination of Off-Grid Wind Powerwith Yangtze Delta Carbon-free Industrial Base
Shanghai-Southern Jiangsu Base
Northern Zhejiang Costal Base
NorthernJiangsu Base
Combining off-grid electricity with carbon-free energy-hungry industries in Yangtze Delta, develop the eco-tourism.
Anhui
Jiangxi
U-Eco City inSouthern China
The increasing demand for energy Rich wind resources and off-coastal land that
remain unexploited. Good Policy Environment The Yangtze River Delta boasts the advantage
to solve the technology and capital problems
Why Yangtze River Delta?Built and Under-Construction Wind Farms in Yangtze Delta ’07
Current Status of Exploitation
Farm NumbersTurbine
NumbersCapacity %Nation
Shanghai 3 38 27.24 2.63Jiangsu 3 244 85.80 8.30
Zhejiang 2 264 23.33 2.26
Total 8 546 136.37 13.19
Built Farms
Farms Under-Construction
21
3The market is incompletely exploited; SK has an opportunity to seize!
Proposed Strategy 2: The Combination of Off-Grid Wind Power with Two Industrial Bases
Proposed Strategy 2: Off-Grid Wind Power in Yangtze Delta Industrial Bases
Proposed StrategyMarket Analysis and SWOTExternal Environment
Newly chemical industries such as Chlor-alkali Industry, seawater hydrogen manufacturing, electrolytic aluminum and steel, Power Machinery industries. Integrating the shipbuilding, steel, machinery industries
Applicable Industries
22
Experiment U-Eco city with combined application of wind energy and SK’s other businesses
Realize SRI by enhancing China renewable energy development. CDM is the main method.
SRI
Active part in Green Ocean Strategy supporting energy solution for in remote areas.
Lower the carbon-dioxide release and achieve green growth in electricity generating.
Use off-grid wind electricity supporting energy-hungry industrial bases in China.
Vision
23
U-Eco City
Low Carbon
Off-GridIntegration
Green OceanStrategy
Thank You!
LI Guang, liguang19881020@yahoo.cn
ZHAO Tian, zhao22306@hotmail.com ZHU Sheng, zhu.sheng2@gmail.com
Fudan University
Rubicon Team