China Wind-Service Market Seen Surging With $3 Billion Spending

Oct. 20 (Bloomberg) — China’s wind-power industry, the
world’s biggest, will boost operations and maintenance spending
sixfold to $3 billion a year by 2020, opening opportunities for
outside service companies, Bloomberg New Energy Finance said.

About $16 billion will be spent by generators from 2015
through 2022 as wind capacity more than doubles to 250
gigawatts, the London-based researcher said in a statement
yesterday.

The company expects manufacturer warranties to end on as
much as 18 gigawatts of capacity each year in the three years
through 2016, on 26 gigawatts in 2017 and 30 gigawatts in 2018.

By 2020, a total of 187 gigawatts of turbines in China will
be out of warranty, it forecast.

About 75 percent of Chinese owners have used their own
staff to maintain turbines after warranties expired, compared
with about 10 percent in Europe. This may fall to 50 percent in
five years as their assets under management grow, BNEF said.

More than 90 independent wind-farm service providers are
operating in China. Over two-thirds emerged in the past two
years, BNEF said. “Many with poor expertise and a lack of
strong financial backing are likely to exit the market.”

To contact Bloomberg News staff for this story:
Feifei Shen in Beijing at
fshen11@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Tony Barrett, Ana Monteiro

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