A major new “Wind Farm” is being planned for West Texas – with the turbines for the renewable energy effort coming from a Chinese company supported by subsidies from the Chinese government.
The 36,000 acre new development, with a planned capacity of 600 megawatts (enough to meet the electricity needs of about 150,000 homes), will include some 240 new wind turbines supplied by China’s Shenyang Power Group. The purchase of those turbines, as well as other aspects of the project, will be financed by a $1.5 billion dollar loan from the Export-Import Bank of China.
In addition, in June, Shenyang Power received a $44 million dollar investment from the government of the city of Shenyang, where the company is based.
It is believed to be the first sale of Chinese-made wind turbines into the US.
Initial development of the farm is expected to start next March, assuming that the necessary permits are obtained. The first turbines would be installed a year later.
The project is being developed by the U.S. Renewable Energy Group, an investment firm, and Cielo Wind Power, a wind-farm developer out of Austin, Texas.
The announcement may lead to questions about the focus on Green technologies as a potential platform for US leadership and job creation.
While the US has used tax credits and other subsidies to support domestic Green technology, China has simultaneously been ramping up its plans to develop and export those technologies.
In the specific case of wind turbines, the US has not been well positioned for two decades. Most development and production capacity moved to Europe in the 1990s. Lately, however, China has entered the game – using its financial muscle to gain market entry.
Experts say that less than 25% of components going into wind turbines going into the US are made domestically.
Cappy McGarr of the U.S. Renewable Energy Group says the West Texas project will create 2800 new jobs – 85% of them in China.
“This is just the beginning,” said the CEO of A-Power Energy Systems in China, which owns Shenyang Power, adding that he sees the US as “an ideal target” for export of its renewable energy systems.
Interestingly, Shenyang’s turbine systems use technology licensed from Western companies Fuhrlander AG (Germany), Norwin (Denmark) and General Electric.
Will Green and renewable energy technologies really benefit US designers and manufacturers – or will China and others come to dominate production? Is the idea of Green technology development spurring domestic growth real or “over-blown?” Let us know your thoughts at the Feedback button below.
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