CHINA Q3 WIND FINANCIALS BLEAK

Sinovel, Goldwind Forecast ‘Arduous’ 2013 as Turbine Sales Drop

November 19, 2012 (Bloomberg BusinessWeek)

“Sinovel Wind Group Co. (601558) and Xinjiang Goldwind Science & Technology Co. (002202), China’s biggest makers of wind turbines, forecast a difficult 2013 after reporting a decline in sales in the third quarter…

“…[Sinovel foresees] grid constraints, slowing growth and [a challenging] economic environment…Goldwind also predicts tough market conditions…The two companies, which together account for a quarter of China’s wind market, have posted losses in the three months ended Sept. 30. Sinovel’s sales plunged 82 percent and Goldwind fell 42 percent.”

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“China, the biggest market for the companies, will for the first time post a 20 percent drop in annual installations to 16.4 gigawatts this year. It will add 16.3 gigawatts of wind farms in 2013, Bloomberg New Energy Finance said…

“Chinese regulators implemented a stricter approval process for on-land projects [especially those in the northern provinces] in 2011 as grids struggled to carry electricity generated from wind-energy installations. The nation had 10 billion kilowatt-hours of electricity from wind farms unused last year and the number may grow this year…”

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