1 Introduction to the Project

1.1 Project background

1.1.1 Project introduction

The wind turbine control system mainly includes the master control system, pitch system, converter and inverter, etc.

The master control system is responsible for important tasks such as wind turbine monitoring, automatic adjustment, maximum wind energy capture and ensuring good grid compatibility, and is mainly composed of several parts, i.e., monitoring system, master control system, pitch control system and frequency conversion system (frequency converter).

The pitch system is an important actuator for the control and protection of large-scale wind turbines, which plays a very important role in the safe, stable and efficient operation of the wind turbine. For electric pitch, the motor is used as the working power, the output half-shaft gear of the reducer is driven to rotate by controlling the motor through the servo driver, and the output half-shaft gear is meshed with the gear on the inside of the slewing bearing at the root of the propeller to drive the propeller to pitch.

The converter and inverter is an excitation device added to the rotor side in the doubly-fed wind turbine. Its main function is to control the amplitude, phase and frequency of excitation through the converter when the rotor speed changes, so that the stator side can input constant frequency electricity to the power grid, including power module, control module and grid-connected module.

Relying on the development of wind power enterprises in Da'an City, the wind turbine parts production project is constructed to produce the master control system, pitch system and converter and inverter of the 1.5MW wind turbine control system, and promote the development of sustainable energy industry.

1.1.2 Market overview

(1) Industrial chain of the wind power generation industry

As a clean energy, wind power is developing rapidly, with a huge and complex industrial chain behind this vigorous development. This industrial chain is like a closely connected tie, which closely intertwines all links and jointly promotes the progress and development of the wind power industry.

The upstream of wind power equipment is the supply of raw materials and parts, mainly including blades, towers, wind turbines, etc., and the representative listed enterprises include Times New Materials, Titan Wind Energy, Riyue Heavy Industry, etc. The midstream of wind power equipment is the manufacturing of wind power turbines, which is mainly divided into onshore wind turbines and offshore wind turbines, and the representative enterprises include Goldwind Sci & Tech, Windey Energy, Dongfang Electric, Mingyang Smart Energy, Electric Wind Power, Envision Energy, etc. The downstream of wind power equipment is the construction and operation of wind farms.

(2) Status quo and prediction of China's wind power generation market

China has abundant reserves of wind energy resources, and there is great potential for the development and utilization of wind energy resources. Regions rich in wind energy resources on the land of China are mainly concentrated in Northeast China, North China, and Northwest China (referred to as the "Three North Regions"), covering the three northeastern provinces, most of Inner Mongolia, northern North China, western Gansu (Jiuquan), northern and eastern Xinjiang, etc. From the perspective of offshore wind energy resources, they are mainly distributed in the southeast coast of China. Among them, the wind energy resources in the Taiwan Strait of China are the most abundant. The average annual wind power density in the central and western parts of Northeast China, the coastal areas of Shandong, the northeast of Sichuan, the eastern part of Guizhou, the southwestern part of Hunan, and the coastal areas of Fujian is generally 200W/㎡ to 300W/㎡.

China's wind power industry has undergone a remarkable development history, becoming one of the world's largest wind power markets from the initial pilot project. China's wind power industry has achieved great success. China has become a significant participant in the field of global wind power generation, and plays an increasingly important role in the field of renewable energy. In 2020, China made the commitment to achieve carbon neutrality by 2060. Since 2020, the Chinese government has issued a series of policies to support the development of the wind power industry. With the advancement of technology and policy support, China's wind power industry is expected to continue to maintain a healthy growth trend.

In recent years, the installed capacity of wind power generation in China has also shown a steady growth trend. As shown by data from the National Energy Administration, the cumulative installed capacity of wind power generation in China was 441.34 million kW in 2023, with a YoY growth by 20.77%.

Table 1 Cumulative Installed Capacity of Wind Power in China and Growth Rate From 2018 to 2023

As shown by data from the National Energy Administration, the newly installed capacity of wind power generation in China was 79.37 million kW in 2023, with a YoY growth by 59.28%. The installed capacity of wind power is gradually recovering.

Table 2 Newly Installed Capacity of Wind Power in China and Growth Rate From 2018 to 2023

China has become the world's leading wind power manufacturing country by constantly increasing investment in wind power technology R&D and production, and improving the technical level and production capacity. As the world's largest wind power market, China's onshore wind power and offshore wind power have great potential, and have developed rapidly in recent years. In 2022, China's wind power generation capacity reached 686.72 billion kWh, with a YoY growth by 21.18%. In 2023, China’s wind power generation capacity was 809 billion kWh, with a YoY growth by 17.81%.

Table 3 Wind Power Generation Capacity and Growth Rate in China From 2018 to 2023

In 2023, the newly installed capacity of wind power in the six major regions in China accounted for 34.8% in North China, 27.5% in Northwest China, 15.8% in South China, 9.9% in Northeast China, 7.3% in Central China, and 4.6% in East China respectively. The newly installed capacity in the three northern regions accounted for 72%, and the newly installed capacity in Central China, East China and South China accounted for 28%.

Table 4 Proportion of Newly Installed Capacity of Each Region in China in 2023

China is in a critical period of economic development, transformation and upgrading, the demand for energy, especially clean energy, is very high, the demand for energy in all walks of life is increasing, and traditional fossil energy cannot meet the increasing demand for energy. Wind power generation is one of the most mature power generation methods, with the most large-scale development conditions and commercial development prospects, in the field of renewable energy.

The development of wind power generation is also of great significance for China to achieve energy structure optimization. All localities plan to lay out the construction of clean energy, actively promote the development and utilization of new energy such as wind power, and boost economic development. The future development of wind power generation is an important direction, which has a broad space, and is also conducive to promoting the optimization of China's energy structure.

(3) Analysis on the wind turbine market

Wind turbines are a core part of the wind turbine market, including onshore and offshore wind turbines. Onshore and offshore wind turbines account for 85% and 15% of the market respectively. In recent years, the large-scale wind turbine has become a trend, and the capacity of a single unit is constantly increasing. Although the cost is high, it can significantly increase the annual power generation capacity and reduce the cost per kilowatt hour‌.

By the end of 2023, the cumulative installed capacity of wind turbines below 3.0MW (excluding 3.0MW) had decreased from 67.3% in 2022 to 56.1%; the cumulative installed capacity of wind turbines between 3.0MW and 5.0MW (excluding 5.0MW) had accounted for 21.3%, decreased by about 1 percentage point from 2022; the cumulative installed capacity of wind turbines of 5.0MW and above had accounted for 22.6%, increased by about 10 percentage points over 2022.

Table 5 Proportion of Cumulative Installed Capacity of Wind Turbines With Different Unit Capacities in China by the End of 2023

With the acceleration of global energy transition and the popularization of renewable energy, the market demand for wind power, as one of the important renewable energies, will continue to increase. At the same time, the Chinese government will continue to increase its support for the wind power industry, and provide more development opportunities for the wind power equipment industry.

The wind power industry is an emerging industry in Da'an City. At present, 6 wind farms have been built and are under construction, with an installed capacity of 650,000 kW and grid-connected power generation of 300,000 kW. 9 well-known domestic wind power development enterprises such as CGN, CHD and Guodian, and 3 supporting enterprises such as Spain's Gamesa, Chengfei Blade and Tianneng Tower have been successfully introduced. Coupled with the wind power development in Inner Mongolia and other places, there is a high demand for wind turbine equipment every year. The wind turbine part processing plant is constructed in this project, which mainly relies on the development of wind power enterprises in Da'an City to extend its industrial chain, and increase the added value, with broad market prospects.

1.1.3 Technical analysis

A scientific research team is established in the project to carry out R&D and innovation in terms of structure, materials and processes of the wind turbine control system with regard to market demands. The modern production process and the automated production line are used in the project, and the production process and technology are mature, with large-scale production conditions. Advanced testing instruments and equipment are introduced in the project to control the product quality and improve the testing precision.

The production technology of wind turbine parts has been very mature, and enterprises with advanced production technology have been introduced in the project, forming a synergy with local wind turbine industry chain manufacturers to continuously innovate the production technology during production.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

On February 11, 2022, the National Development and Reform Commission and the National Energy Administration issued the Opinions on Improving the Institutional Mechanisms and Policy Measures for Green and Low-carbon Energy Transition, proposing to promote the construction of an energy supply system with clean and low-carbon energy as the main body. Focusing on deserts, gobi and desert areas, accelerate the construction of large-scale wind power and photovoltaic power generation bases, upgrade and modify the existing coal-fired units in the region, explore the establishment of a mechanism for the coordination of transmitting and receiving ends to provide regulation for new energy power transmission, and support the construction of new energy power.

In June 2022, the National Development and Reform Commission and other departments issued the 14th Five-year Plan for Renewable Energy Development, which clarified the renewable energy development goals, key tasks and safeguard measures for the 14th five-year plan. It was also proposed that by 2025, the total consumption of renewable energy will have reached about 1 billion tons of standard coal, accounting for about 18% of primary energy consumption; the annual power generation capacity of renewable energy will have reached about  3.3 trillion kWh, and the primary energy consumption of wind and solar energy will have been doubled. By 2030, the total installed capacity of wind power and solar energy power generation will have been over 1.2 billion kW.

It was proposed in the Main Objectives of the 14th Five-year Plan for National Economic and Social Development of Da'an City and the Outline of the Long-term Objectives for 2035 to vigorously develop the clean energy industry, fully integrate into the construction of the national new energy guarantee base, actively participate in the construction of the "10 million kW of wind power, 10 million kW of photovoltaic and 10 million tons of hydrogen production" base in the province, take the lead in breaking through 10 million kW in the province in terms of the installed capacity of wind power and photovoltaic, promote "wind and solar complementation", realize the development and utilization of clean energy such as wind power and photovoltaic in the province, and build a clean energy production and consumption center in the province. Vigorously develop wind power, photovoltaic and other equipment manufacturing industries and supporting projects, and form a production pattern within the whole industrial chain of wind turbine host, blade, tower manufacturing and photovoltaic module processing.

Da'an is the only "pilot county for the standardization of government services" in the province, and its urban credit monitoring index ranks second in Jilin and sixth in China. The special-class whole-process tracking service is implemented for major projects and enterprises, a green channel for administrative examination and approval is opened up, and charging items involved are uniformly implemented in accordance with the minimum standards stipulated by the state, province, Baicheng City and Da'an City. For the key projects determined by the municipal Party committee and the municipal government with high scientific and technological content, strong industrial drive, good growth and large economic stimulation, the support quota shall be determined according to the principle of one project one discussion and special arrangement for a special case.

(2) Resource advantages

Wind energy resources in Da'an City are widely distributed, about 90% of the area has the potential to develop wind power, and the average annual wind speed is maintained at 3-5m/s, thus providing unique conditions for the wind power industry. The planned developable area of wind power planning in Da'an City is more than 10 million kW. At present, the installed grid connection capacity of wind power in Da'an City is 1,112,000 kW.

(3) Industrial advantages

The wind power industry is an emerging industry in Da'an City, with a developable wind power generation area of 1,600 square kilometers and a total installed capacity of 6.6 million kilowatts. It has become a wind power base of over 10 million kW in the province. Among them, 5.25 million kW is included in the national and provincial planning.

At present, a large number of central state-owned enterprises and listed companies such as China Resources, Huaneng, CECH and CGN are developing wind power and photovoltaic resources in Da'an City, and the local demand for wind power and photovoltaic related equipment is very large. Da'an City has convenient transportation, radiating huge surrounding areas, which provides unique advantages for the development of wind power and photovoltaic related equipment manufacturing industries.

On the basis of the existing clean energy chemical industrial park in western Jilin (Da'an), Da'an City plans to build an incubation park for integrated development of the clean energy industry, and gradually introduces a number of industrial enterprises with good development prospects, large investment volume, strong industrial drive and excellent comprehensive benefits through overall planning of various investment resources and reasonable allocation of projects in the park. Focusing on the development of the equipment manufacturing industry, the emphasis is put on the construction of an incubation park for integrated development of the clean energy industry.

(4) Talent advantages

Baicheng City has a number of scientific research institutes such as the Agricultural Research Institute, the Forestry Research Institute, the Agricultural Machinery Research Institute and the Animal Husbandry Research Institute, with 40,873 professional technicians, including 6,898 persons with senior titles, 18,409 persons with intermediate titles, and 15,566 persons with primary titles.

In 2023, Baicheng City issued the 20 Measures for Strengthening and Improving the City's Talent Work, aiming to revitalize local talent resources to the maximum limit based on geographical advantages, accelerate the construction of 3 teams, namely, expert strategic talents, practical local talents, and technical blue-collar talents, and provide a strong talent guarantee for comprehensive construction of a new Baicheng with socialist modernization.

1.2 Contents and scale of project construction

1.2.1 Product scale

After the completion of the project, it can produce the master control system, pitch system and converter and inverter for 700 sets of 1.5MW wind turbine control systems per year.

1.2.2 Contents of project construction

The project covers an area of 40,000 ㎡, with a gross floor area of 40,000 ㎡. In the project, buildings such as production R&D center, experiment center, office buildings, production workshop and warehouse are mainly constructed, the production equipment is purchased, and supporting facilities such as water, electricity and heating, ground hardening, and greening are built in the project.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 200 million yuan, including the construction investment of 170 million yuan, and the current funds of 30 million yuan.

1.3.2 Capital raising

Self-raised by the enterprise.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 180 million yuan, its profit will be 40 million yuan, its investment payback period will be 7.0 years (after the tax, including the construction period of 2 years), and its investment profit rate will be 20.0%.

Note: "10 thousand yuan" in the table is in RMB.

1.4.2 Social evaluation

Wind power generation is a low-carbon and environmentally friendly energy form, which helps to reduce dependence on traditional energy, reduce carbon emissions, improve local environmental quality, protect ecosystems, and improve the life quality of residents. The construction of the project will help promote the development of clean energy technology, promote the development of sustainable energy industry, provide certain employment opportunities, and promote the development of local economy.

1.5 Cooperative way

Sole proprietorship.

1.6 What to be invested by the foreign party

Funds, equipment and technology.

1.7 Construction site of the project

Daan City, Baicheng City, Jilin.

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Basic information

Name: Daan City Key Project Service Center

Address: 51 Changbai South Street, Daan City

2.2 Overview

Da'an has a long history of development and a profound regional cultural heritage. Ethnic minorities such as Yemack, Fuyu, Shiwei, Khitan, Jurchen and Mongols hunt and graze in this area. There are many cultural carriers such as "An" culture, Liaojin culture, fishing and hunting culture, grassland culture, farming culture, folk culture and wetland culture. There are ancient cultural relics such as Houtaomuga ruins in the Neolithic Period more than 10,000 years ago, Hanshu ruins in the Yin-Shang period more than 3,000 years ago, Banshan ruins in Liao-Jin period more than 1,000 years ago, Zhenguo Cemetery, and princess mausoleum of the Qing Dynasty.

Da'an City is located in the hinterland of the Songnen Plain in the northwest part of Jilin Province, next to Zhaoyuan County, Heilongjiang Province across the river in the east, bordered by Taonan City and Tongyu County in the west, adjacent to Qianguo County and Qian'an County in the south, and next to Zhenlai County in the north, with Tao'er River as the border. The area under jurisdiction is 95 kilometers long from east to west and 90 kilometers wide from north to south, with a total area of 4,879 square kilometers.

In 2023, the gross domestic product (GDP) of the region reached 20.182 billion yuan,  increased by 8.9% compared with that in the last year at the comparable price. In 2023, the per capita GDP of the region was 63,589 yuan.

2.3 Contact method

2.3.1 Contact method of cooperator

Project unit: Daan City Key Project Service Center

Contact person: Wu Dongming

Tel: +86-436-5219233

E-mail: daszsjjhk@163.com

2.3.2 Contact method of the city (prefecture) where the project is located

Contact unit: The Bureau of Commerce of Baicheng City

Contact person: Xu Zengchun

Tel: +86-436-3203010  

   +86-13894682986

E-mail: bcjhj07@126.com