International and domestic suppliers of wind power converters will have a big opportunity to outfit China's growing land-based and offshore wind sectors, according to market research firm Reportlinker.
According to the firm, China's wind industry contributed 17.7 GW in 2014 – an increase of nearly 10% from the previous year. The country's offshore wind sector also looks promising. As such, there will be increased demand for converters.
Converters are one of the key components of a wind-generating set, Reportlinker notes. Converters can optimize the operation of wind power systems, improve the efficiency of wind turbines and reduce power losses.
Driven by the resumption of offshore wind power projects in August 2013 and the state's support for the wind power industry, the output value of China's wind power converter industry amounted to RMB 5.8 billion in 2014, up 11.5% from a year earlier. The demand was 10,727 sets, rising by 14.7% year over year.
To date, China's converter market has been monopolized by foreign players, such as ABB, Emerson and Siemens. In contrast, the Chinese enterprises, such as Sungrow Power Supply, Hi-Tech Control and Zhuzhou CSR Times Electric, currently occupy only 5% of the market.
The research firm notes that although 1.5 MW and 2 MW wind power converters are widely used in the Chinese market, the offshore wind sector holds promise. In fact, Reportlinker estimates that going forward, research and design efforts will be spent on wind power converters for 5 MW to 10 MW offshore wind machines.