China does indeed have an industrial policy designed to jump-start the Chinese industry.  To qualify for any government program in China, the turbines must be 70% sourced in China.  This has led to a huge business in technical licensing of designs from established European shops. The only other pathway for western firms to enter the market is to form joint ventures with Chinese firms, or to actually establish subsidiaries, like Vestas, Nordex, GE, and Gamesa.

Virtually all of the European design shops have license arrangements with Chinese companies, as well as some manufacturers like REpower. The licenses themselves run the gamut in quality, including designs from the top shops like aerodyn, to very poor shops whose sole interest is royalties.

Background to this analysis is that such industrial policy is known to the Chinese to be fraught with potential failure for many firms. The Chinese wind industry has exploded so quickly that in general the performance level of the equipment is very poor. We have been told by officials that they expect up to 90% of the firms to fail, but that is the method to create a competitive industry globally.

A-Power existed as a near consulting firm, with a controversial background. They acquired the license for this turbine from a 3rd tier German manufacturer, Fuhrländer, who had little real success in Europe, but had great licensing success in Germany.

In fact, Fuhrländer provided the licenses for China's largest manufacturer, Sinovel, even though they could barely sell the turbine in Europe.  Before these licenses, Sinovel barely existed.

The German company acquired a further license for a 2.5MW turbine, but this time from a reputable design shop, W2E, made up of ex-Nordex designers. They've produced a few dozen of the turbines here in Europe, which i've analyzed and found excellent, at least as far as the design.

Instead of a further license with their partner Sinovel, for some reason  Fuhrländer sold the license to a firm with no prior manufacturing experience, and a shady past, A-Power.

A-Power's first turbines were completed this summer, and they are now in full production for both Cielo in Texas and the Chinese market. Production lines established before any testing is completed have a history of failure in the wind industry, and that's very possibly the case here.

Such failure would not reflect on the design from W2E, rather the QC at manufacturing level.

Strangely,  Fuhrländer has also licensed the technology to a start-up in the US, which was planning to establish manufacturing of the design in the US.  They will likely now be undercut by A-Power, a very queer decision by  Fuhrländer. At least two of these turbines are currently operating in the US, which i believe to have been manufactured in Europe.


"Life shrinks or expands in proportion to one's courage." - Anaïs Nin