Chal­lenges ahead

ChinAfrica - - Business -

Ac­cord­ing to a sur­vey car­ried out by the State Grid En­ergy Re­search In­sti­tute, the av­er­age cost of off­shore wind projects - $2,400 per kw in 2015 - is as much as 2.8 times that of on­shore ones.

An­other sur­vey car­ried out by Bloomberg New En­ergy Fi­nance showed that most off­shore wind power projects in China gen­er­ate elec­tric­ity for sale at costs rang­ing from $0.16 per kwh to $0.23 per kwh, far higher than the price of elec­tric­ity pro­duced by coal­fired and on­shore wind power.

“To fend off pos­si­ble fi­nan­cial risks, a project op­er­a­tor should find a break-even point as soon as pos­si­ble. And, only when a project gen­er­ates profit is large-scale ex­ploita­tion pos­si­ble,” said Wang Qiang, Mar­ket­ing Man­ager of CTG’S Fu­jian en­ergy in­vest­ment branch.

While the en­vi­ron­men­tal im­pact of such projects has raised con­cerns, Wang ex­plained that peo­ple need not worry.

“Be­fore a project com­mences, au­thor­i­ta­tive marine and eco­log­i­cal ex­perts first en­gage in dis­cus­sions to demon­strate the vi­a­bil­ity from the per­spec­tive of en­vi­ron­men­tal preser­va­tion and pro­duce an en­vi­ron­men­tal im­pact as­sess­ment re­port. With­out that, the project will never be put on track,” he said.

“Wind tur­bines stand­ing in the sea have proven to be a pos­i­tive in­flu­ence, and ac­tu­ally some marine an­i­mals even use them as places to rest and gather,” said Wang.

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