market research report : wind energy market in china 2012
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Wind Energy Market in ChinaWind Energy Market in China
April 2012
Executive Summary
MarketGlobal wind power cumulative installed capacity is expected to reach X GW growing with a CAGR of y% between 20‐‐ ‐ ‐‐ Chinese wind power cumulative installed capacity is expected to reach Y GW growing with a CAGR of z% between 20‐‐ ‐‐‐
Drivers: Ch ll
Drivers & Challenges
Drivers: Growing Energy Demand
Untapped Potential
High Investment Potential
Challenges: Decline in Quality
Tariff Constraints
Lack of Grid Connectivity
Government Initiatives
Key Policies to Develop Wind PowerNational Renewable Energy LawNational Initiatives
Reduction in CO2 Emission
Local Wind Power Development Planning
Off‐Shore Wind Power DevelopmentDevelopment of Domestic ManufacturersWind Turbine Generator Production
Trends
CompetitionMajor Players
Company 1 Company 2 Company 3 Company 4
Reliance on Coal‐fired Power Plants
2WIND ENERGY MARKET IN CHINA 2012.PPT
p y p y p y p y
•Market Overview• Global
• China
•Major Wind Power Bases
•Drivers & Challenges
•Government Initiatives
•Trends
•Mergers & Acquisitionsg q
•Competition
•Key Takeaway
3WIND ENERGY MARKET IN CHINA 2012.PPT
Key Takeaway
Global wind power market will grow at a CAGR of x% to reach USD Y bn in 20‐‐
•Global cumulative installed wind power capacity is expected to reach x GW growing with a CAGR of z% between 20‐‐‐ ‐‐
Global Market ‐ Overview Global Installed Wind Power Capacity
500
GW
Z%x6
5between 20 Value of the global wind power market is expected to reach USD y bn growing with a CAGR of x% during 20‐‐‐‐‐
• By the end of 20‐‐, wind power is projected to supply the world with x% of its electricityWind power is expected to produce y% of the world’s electricity demand by 20 100
200
300
400Z% x5
x4x3
x2x1
electricity demand by 20‐‐• Top five companies account for z% share of the global wind energy market
Wind Power Market GrowthGlobal Market Share (20‐‐)
0
100
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐
150
200
USD bn
Z% x2C%
B%
Company 2
Company 1
0
50
100x1A%
F%E%
D%
Others
Company 5
Company 4
Company 3
4WIND ENERGY MARKET IN CHINA 2012.PPT
020‐‐e20‐‐
F%
In 20‐‐, newly installed capacity in China accounted for X% of the global annual wind power capacity
•Wind power cumulative installed capacity in China is expected to reach x GW in 20‐‐ growing with a CAGR f % b 20
Domestic Market ‐ Overview Installed Capacity Growth
150
GWx4
of y% between 20‐‐‐‐‐
• In 20‐‐, X ranked first in terms of cumulative wind power installed capacity in the world
• In 20‐‐, Y led the world in newly installed wind‐energy devices reaching z GW
50
100
150Z%
x3
x2x1energy devices, reaching z GW
Rank‐ Cumulative Installed Capacity (20‐‐)Rank‐ New Installed Capacity(20‐‐)
020‐‐e20‐‐e20‐‐20‐‐
x1
40
50
GW
x3
x2x1
15
20
GWx1
0
10
20
30
x5
x4x3
0
5
10
x5x4x3x2
5WIND ENERGY MARKET IN CHINA 2012.PPT
Country 5Country 4Country 3Country 2Country 10
Country 5Country 4Country 3Country 2Country 1
X region is expected to build y wind power plants with a total capacity of z GW by 20‐‐
• Finding 1
• Finding 2
X Base ‐ Overview Wind Power Target
40
GW
x3• Finding 3
0
10
20
30 Z%x3
x2
x1
Planned Construction (20‐‐) X – Unit Capacity Cost
020‐‐20‐‐20‐‐
Base Unit Capacity Cost (USD/Kw)
20‐‐e 20‐‐e 20‐‐e
X
Location Units Capacity (GW)
City 1
City 2
Coverage Area
City 3
City 4
City 5
6WIND ENERGY MARKET IN CHINA 2012.PPT
Drivers and Challenges ‐ Summary
Drivers
Challenges
Drivers
Growing Energy Demand
U t d P t ti l
Decline in Quality
Tariff Constraints
Untapped Potential
High Investment Potential
Lack of Grid Connectivity
Reduction in CO2 Emission
7WIND ENERGY MARKET IN CHINA 2012.PPT
Energy demand growing at a x% CAGR during 20‐‐ ‐‐‐ to drive the wind energy market in China
•Finding 1• Finding 2
Growing Energy Demand Impact
• Finding 3• Finding 4
Newly Installed Capacity (20‐‐)China ‐ Energy Demand
3,000
4,000
Mtoe
Z%
x3x2
x1
YX
X3%
X2% X1%
B
A
0
1,000
2,000x1
B%A%
X4%
D
C
8WIND ENERGY MARKET IN CHINA 2012.PPT
20‐‐e20‐‐e20‐‐
Around x% untapped wind resources in the y bases to act as a major growth driver of wind energy in China
•Finding 1•Finding 2
Untapped Potential Impact
g•Finding 3
Wind BasesResource
Potential (GW)
Installed Capacity (GW)( )
A ‐ ‐
B ‐ ‐
C ‐ ‐Region
Total Area(104km2)
Exploitable Potential (GW)
D ‐ ‐
E ‐ ‐
F ‐ ‐
G ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
9WIND ENERGY MARKET IN CHINA 2012.PPT
Wind energy has received x share of investments vis‐à‐vis other renewable sources of energy in China
•Finding 1
• Finding 2
High Investment Potential Impact
g
• Finding 3
Investment in Renewable Energy (20‐‐‐ ‐‐)
E%
D%C%
E
D
C
B
A
B%
A%
10WIND ENERGY MARKET IN CHINA 2012.PPT
Mandate of reduced carbon footprint under the 12th FYP to act as a major growth driver for the wind energy market
Reduction in CO2 Emissions Impact• Finding 1• Finding 2• Finding 3• Finding 4• Finding 5
Per Capita CO2 Emission Rise in Non Fossil Fuel UsagePer Capita CO2 Emission
6
8Z%
x3
tons
15
%
Z%Y%
Rise in Non Fossil Fuel Usage
0
2
4
6
x2x1
0
5
10 x%
11WIND ENERGY MARKET IN CHINA 2012.PPT
020‐‐20‐‐19‐‐
020‐‐e20‐‐
Substandard equipment quality acts as a major challenge to the Chinese wind energy market
Decline in Quality Impact• Finding 1
• Finding 2
• Finding 3
• Finding 4
Wi d T bi E i t P iWind Turbine Equipment Price
1,000
USD/KWY%x1
200
400
600
800x2
12WIND ENERGY MARKET IN CHINA 2012.PPT
020‐‐20‐‐
Fixed grid tariffs for wind power generation is expected to hinder the growth of the Chinese wind energy market
•Finding 1
Tariff Constraints Impact
Fixed Price Policy
Point 1X
Y A B C D
Z ‐ ‐ ‐ ‐
• Finding 2
• Finding 3
• Finding 4
13WIND ENERGY MARKET IN CHINA 2012.PPT
Weak grid connectivity to have an adverse impact on the Chinese wind energy market
•Finding 1
• Finding 2
Weak Grid Connectivity Impact
Point 1Point 1Point 1Point 1
X Y Z
• Finding 3
• Finding 4
14WIND ENERGY MARKET IN CHINA 2012.PPT
Government Initiatives ‐ Summary
Key Policies to Develop Wind Power
`Key Initiatives
National Renewable Energy Law
National Initiatives
Local Wind Power Development Planning
15WIND ENERGY MARKET IN CHINA 2012.PPT
Key policies influencing the development of wind power in China
• Point 1 • Point 2 • Point 3
20 2020 20 20
Point 1 Point 2 Point 3
20‐‐ 20‐‐20‐‐ 20‐‐20‐‐ 20‐‐ 20‐‐
• Point 6 • Point 7 • Point 8 • Point 9 • Point 10 • Point 11 • Point 12
• Point 4 • Point 5
16WIND ENERGY MARKET IN CHINA 2012.PPT
X has adopted several measures to encourage the development of wind power in the region
Local Wind Power Policies of X
Point 1Point 1
BA C
• Point 1
• Point 2 • Point 1• Point 1
• Point 2
• Point 3
• Point 1• Point 2
17WIND ENERGY MARKET IN CHINA 2012.PPT
Installed wind power capacity in Y is expected to reach x% of the total wind capacity of the province by 20‐‐
Local Wind Power Development Planning in the Y
Point 1
Point 2
Point 3
Point 4
Point 5Point 5
Point 6
18WIND ENERGY MARKET IN CHINA 2012.PPT
Trends ‐ Summary
Reliance on Coal‐fired Power Plants
Off‐Shore Wind Power Development
Key Trends
Wind Turbine Generator Production
Development of Domestic Manufacturers
19WIND ENERGY MARKET IN CHINA 2012.PPT
Development of off‐shore wind power is an emerging trend with expected capacity of x GW by 20‐‐
• Finding 1• Finding 2• Finding 3
Off‐Shore Wind Power Development
Off‐shore wind power is set to• Finding 3
• Finding 4
power is set to be developed by
20‐‐
XY
X
X
20‐‐e 20‐‐e
A ‐ ‐
B ‐ ‐
y z
C ‐ ‐
D ‐ ‐
E ‐ ‐
Point 1 Point 2
20WIND ENERGY MARKET IN CHINA 2012.PPT
F ‐ ‐
Domestic companies accounted for x% and y% of new and cumulative installed wind power capacities in 20‐‐
• Finding 1• Finding 2
Development of Domestic Manufacturers
Growing domestic
• Finding 3• Finding 4
participation in equipment
manufacturing
Market Share‐ New Installed Capacity
100
%
M%K%H%E%
20
40
60
80
N%L%
K%
J%
I%
G%
F%
D%
C%
B%
A%CBA
21WIND ENERGY MARKET IN CHINA 2012.PPT
020‐‐20‐‐20‐‐20‐‐20‐‐20‐‐
Chinese wind energy players are focusing on the production of multi‐MW wind turbine generators
• Finding 1
• Finding 2
Wind Turbine Generator Production
Increasing production of
• Finding 3
• Finding 4
production of MW scale generators
Proportion of MW Scale TurbinesProportion of MW‐Scale Turbines
80
100
%Z%
x3x2
0
20
40
60 x1
22WIND ENERGY MARKET IN CHINA 2012.PPT
20‐‐20‐‐20‐‐
Domestic Competition – Summary (1/2)
580
600
620
Net Income
Size of the Bubble Represents Market Capitalization in USD mn
500
520
540
560 e
420
440
460
480
a
c
340
360
380
400
b
c
d
320
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
Total Income
Company 5Company 3Company 2Company 4Company 1
23WIND ENERGY MARKET IN CHINA 2012.PPT
Domestic Competition – Summary (2/2)
Total Income and Profit for Major Domestic Companies
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
USD
Company1y1
x1
C 3x3
Company 2y2
x2
Company 4y4
x4
Company 3y3
Company 5y5
x5
y4
BA
24WIND ENERGY MARKET IN CHINA 2012.PPT
Note: All figures are in USD mn for the year ending 31st Dec 2010
Domestic Company – Company 1
Company Information Locations – China
Corporate AddressAddress 1,
Country 1
Tel No. ‐‐
Fax No. ‐‐
Website ‐‐
Year of Incorporation 19‐‐
Products and Services
Ticker Symbol ‐‐
Stock Exchange ‐
Products and Services
Category Products/Services
Power Generation Product 1, Product 2
Others Product 1 Product 2 Product 3 N D i ti
Key People
Headquarters
Others Product 1, Product 2, Product 3… Name Designation
Person 1 Designation
Person 2 Designation
Person 3 Designation
25WIND ENERGY MARKET IN CHINA 2012.PPT
Person 4 Designation
i i l S h K i
Domestic Company – Company 1
Financial Snapshot Key Ratios
Profit / Loss
Total Income
10,000 600
ProfitUSD mn
Total IncomeUSD mn
x43
Particulars y‐o‐y
change (20‐‐‐‐‐)
20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability Ratios
Operating Margin ‐ ‐ ‐ ‐ ‐
0
5,000
0
200
400
20‐‐20‐‐
x3
20‐‐
x2
20‐‐
x1
Operating Margin
Net Margin ‐ ‐ ‐ ‐ ‐
Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐Return on Equity ‐ ‐ ‐ ‐ ‐Return on Capital Employed ‐ ‐ ‐ ‐ ‐Return on Working Capital ‐ ‐ ‐ ‐ ‐
Return on Assets ‐ ‐ ‐ ‐ ‐
Financial Summary
• The company incurred a net profit of USD x mn in FY 20‐‐, as compared to net profit of USD y mn in FY 20‐‐
• The company reported total Income of USD z mn in FY 20‐‐registering an increase of per cent over FY 20
Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost Ratios
Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Interest costs (% of Sales)registering an increase of z per cent over FY 20‐‐
• The company earned an operating margin of y per cent in FY 20‐‐ an increase of x percentage points over FY 20‐‐
• The company reported debt to equity ratio of y in FY 20‐‐, a decrease of x per cent over FY 20‐‐
Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Liquidity Ratios
Current Ratio ‐ ‐ ‐ ‐ ‐
Cash Ratio ‐ ‐ ‐ ‐ ‐
Leverage Ratios
Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐
Financial Summary
Indicators dd/mm/yy
Market Capitalization (USD) ‐
Total Enterprise Value (USD) ‐
Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐
Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Efficiency Ratios
Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐
Asset Turnover ‐ ‐ ‐ ‐ ‐
Current Asset Turnover
26WIND ENERGY MARKET IN CHINA 2012.PPT
EPS (USD) ‐
PE Ratio (Absolute) ‐
Current Asset Turnover ‐ ‐ ‐ ‐ ‐
Working Capital Turnover ‐ ‐ ‐ ‐ ‐Capital Employed Turnover ‐ ‐ ‐ ‐ ‐
Improved Decline
Domestic Company –Company 1
Key Business Segments Key Geographic Segments
100% 9 x10x6x3
DCBA
100%x1
0%
50%
100%
x7
x8x9 x10
x4
x5x6
x1
x2 x3
50%
0%20‐‐
Key Recent Developments
20‐‐20‐‐20‐‐ A
Description News
Overview
• Company is a large scale power generation group with a total registered capital of USD xbn
• Company operates through x branch companies and y wholly funded subsidiaries with ti t di t ib t d ipower generation assets distributed over z provinces
• Total installed power generation capacity of the company is around x GW
New Business• In 20‐‐ wind farm construction of the company in x and y obtained final approval from the regulatory authorities in ChinaC t ti f th i d f f th i th i b ti i 20
27WIND ENERGY MARKET IN CHINA 2012.PPT
• Construction of the x wind farm of the company in the y province began operations in 20‐‐
Chinese wind energy market is expected to grow at a CAGR of x% to reach y GW between 20‐‐ ‐‐‐
Huge untapped potential and supportive government policies to drive the wind energy market in China
Opportunities in the M k t Market Size
Government i i i
Growing demand for energy is expected to emerge as a major
h d i f h
Market Market SizeInitiatives
China adopted the Renewable Energy Law to promote the100
150
GW
Y%x4
x3growth driver for the Chinese wind energy market
Huge untapped potential
Law to promote the Chinese wind energy market
Government has d t d l
0
50
20‐‐e20‐‐e20‐‐
x2
20‐‐
x1
Challenges
Huge untapped potential of wind energy resources to act as a major growth driver of wind energy in China
adopted several measures to develop the major wind power bases in China
High investment in wind energy coupled with CO2 reduction target to drive
• Substandard Quality Turbines
• Tariff Constraints
• Lack of Grid Connectivity
Local government of the provinces have also announced several supportive policies to develop
28WIND ENERGY MARKET IN CHINA 2012.PPT
the Chinese wind energy market in China
y policies to develop the wind power bases
Thank you for the attentionThe Wind Energy Market – China report is a part of Netscribes’ Power Industry Series. For more detailed information or customized research requirements please contact:
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29WIND ENERGY MARKET IN CHINA 2012.PPT
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