Dr. Frank Chu

GLG News by Dr. Frank Chu, Principal

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

Competition Intensifies as Chinese Manufacturer Launches 6 MW Wind Turbine

May 30, 2011

Analysis of:Sinovel Makes China's First 6-Megawatt Turbine, Xinhua Says | dt3.bnef.com

The first 6 MW unit by Sinovel, world's second largest wind turbine manufacturer, is off the assembly line and becomes China's biggest turbine for wind power generation.  This signals the begining of a new period which consolidation of wind equipment suppliers in China is accelerating and competition among the world's major wind turbine manufacturers is intensifying to capture the off-shore wind market with large capacity units

Japan needs major power grid investment after the quake

April 18, 2011

While Japan focuses on bringing the crippled nuclear reactors to cold shutdown, the longer term effort would be to restore adequate power for the reconstruction. With many nuclear reactors in the eastern grid out of action, it is estimated there may be up to a 9,000 MW capacity shortage during this summer and for the next several years until new supplies are installed. This calls for a rebuild of Japan’s power grid to deal with the flexible generation mix. Major investments are needed in this effort to adopt new technologies such as high power electronics and dc technologies which can solve Japan’s fragmented grid issue (50/60 Hz) and to restore the grid quickly after natural disasters.

Will China’s Nuclear Power Expansion Plan Affected by Japan’s Disaster?

March 15, 2011

As China is on a nuclear expansion program with 28 reactors totaling 30,000 MW under construction and up to 80,000 MW planned for 2010, Japan’s nuclear disaster has caused concerns in China.  Uranium and power equipment suppliers, both domestic and foreign, are prepared to benefit from China’s nuclear expansion but will now have to watch for any signs of a change in course. The only official statements so far are from the a news briefing by the Environmental Ministry that no radiation from Japan is detected, and that China will learn from the Japan’s experience but will not change the course of its nuclear program.

China State Grid's Brazil power asset purchase likely a win-win deal

December 23, 2010

Analysis of:China State Grid buys Brazil power assets for $1bn | www.powergenworldwide.com

China State Grid’s acquisition of Brazilian power asset is more significant and strategic than the $3.5 billion acquisition of Philippine’s national grid in 2009. The synergy of China and Brazil’s power structure make the partnership a likely win-win situation for the two emerging economies which will rely heavily on remote hydroelectric power to fuel its industry in the coming decades.  Whether such acquisition will lead to profit remains to be seen.  However, the strategic benefits are apparent. No doubt, the Brazilian acquisition may be followed by many other  investments by China State Grid or other SOEs.

The Financial and Technical Challenges Facing Wind Developers in China

April 4, 2010

Analysis of:China became top wind power mkt in 2009 - consultant | in.news.yahoo.com

Despite Denmark BTM Consult’s report that China has become the world's largest wind turbine market, with 13,000 MW new installed in 2009, there are signs that wind developers and equipment vendors are facing increasing financial and technical challenges. Cautionary remarks from government sources and power system planners have casted doubt whether a high growth rate can be maintained.

Energy Conservation Efforts High in China’s Priority List

March 5, 2010

Analysis of:China’s Premier Presents Plan for Growth | www.nytimes.com

In his annual state of the country report to the People’s Congress. Chinese Premier Wen Jiabao singled out agriculture, social and welfare spending as the key government priorities in 2010, followed by energy conservation, and science and innovation emphasis. This is to achieve the respective targets of 8% and 3% GDP and CPI increases in 2010.

Fossil Fuel Technologies Emphasized in US China Energy Co-operation

November 18, 2009

Analysis of:U.S.-China Clean Energy Announcements | www.energy.gov

In a joint declaration, President Obama and President Hu of China announced a package of co-operation initiatives on clean energy to deal with the issue of climate change  and oil dependance.  While the 7 initiatives cover a wide range of actions and technologies  from joint R&D, energy efficiency standards, wind,  solar, biofuel and electric vehicles development, etc, the major emphasis appears to be on the efficient use of fossil fuel and carbon capture technologies. 

Electric Car Makers Urge For Government Subsidies in China

November 3, 2009

Analysis of:Will China Miss Out On Electric Car Investment? | blogs.wsj.com

While China is poised to become the world's largest car market and manufacturer, its strategy to promote electric vehicles as a means to minimize foreign oil dependence has been called into questions.  Some analysts even observed that the  Government's reluctance to provide subsidies to private purchase of electric vehicles may lead to a miss opportunity for China.   What are the possible reasons behind the government's inaction?

Would the hydrate discovery alter China's energy strategy

October 15, 2009

Analysis of:China: Huge hydrate gas discovery made in Tibet | www.energy-pedia.com

The announcement of  hydrate (a form of frozen methane) discovery in Qinghai province   aroused quite a bit of attention in China. In view of China's poor natural gas reserve and the increasing role of non-coal based fuel, it is not difficult to see why the Chinese are so excited about the find.  As China's energy sources depend heavily on its coal reserve and oil/gas imports, there is speculation that the hydrate discovery may change the supply mix and cause a shift in its energy strategy.

China's foreign investments may target the greentech sector

June 15, 2009

Analysis of:China Sovereign Fund May Buy Up to 5% of Enel, Stampa Reports | www.bloomberg.com

China Investment Corporation's (CIC) reported intention in buying up to 5% of Italy's largest power utility ENEL for $1.4 billion came at no surprise as China has been known to target the energy sector as a priority in its foreign investment strategy.  What makes the news interesting is Stampa's comment on CIC's interest in a significant stake of ENEL's Green Power renewable energy unit.  Does that mean CIC would shift its focus to greentech investments?  How would the clean energy sector benefit from CIC's investment strategy?

The Impact of China's Stimulus Package on its Power Sector

December 10, 2008

Analysis of:China weighs new plans to boost economic growth | hosted.ap.org

While few details of China's $586 billion stimulus plan are known, the debate of social safety net spending verses infrastructure investing continues.  What portion of the package is extra appropriation on top of China's existing 5-year plan?  What are the implications on China's power sector which is facing challenging times with falling demand? A quick analysis indicates that China's two grid companies are moving quickly to get a slice of the package and tenders for major equipment upgrade may benefit T&D equipment manufacturers 

Rail and electric sectors to benefit from China’s stimulus planC

November 14, 2008

Analysis of:China's Stimulus Will Work | online.wsj.com

China’s $586 billion stimulus package includes major infrastructure and social welfare spending in the next two years.  Among the priority projects in infrastructure development are high-speed rail and rural electric-grid fortification.  While the plan’s objective is to stimulate domestic consumption and assist industry, it should also provide business opportunities for offshore vendors who could offer unique equipment and technology services.

China's electricity companies continue to suffer losses due to coal prices

July 28, 2008

Analysis of:China's coal price caps could worsen shortages - Morgan Stanley | www.forbes.com

China's recent price cap on thermal coal has failed to stop the losses by electricity generation companies as the spot prices of coal continue to increase.  Analysts foresee that the second round of executive orders by the National Development and Reform Commission (NDRC) to freeze coal prices at the June 19th level will again fail.  What are the implications to the electricity sector and the consumers?  Would that lead to another around of tariff increase, and increase the risk of runaway inflation in China?  During the last round of tariff adjustment, electricity companies with hydro generation and renewable portfolios have much to gain.  Would NDRC grant similar increases to hydro and wind generation if they have to allow further increases by coal-fired plants?

Possible bottlenecks in China's wind power growth

July 1, 2008

Analysis of:China wind power capacity growing | uk.reuters.com

At the end of 2008, China's installed wind power capacity is expected to top 10,000 MW, a target set for 2010.  Chinese officials are now boldly predicting that by 2010, the total installed capacity may reach 20,000 MW.  The rapid growth has attracted many domestic industrial firms to diversify into wind turbine manufacturing.  With the support of government policies of mandating a 70% domestic content for wind equipment, the once dominant foreign suppliers are  yielding almost half of the market share to domestic players.  What is the long term outlook and what are the bottlenecks for China's wind power developments?

The background of China's electricity tariff increase and thermal coal price freeze

June 20, 2008

Analysis of:China Raises Fuel, Power Prices to Curb Energy Demand | www.bloomberg.com

In parallel with the announcement of a 17% increase in gasoline prices,  China's NDRC ordered an immediate freeze in thermal coal prices while allowing electricity tariff to rise by about 4.7%.  Although the electricity prices adjustment is widely expected, the timing and the temporary coal price freeze came as a surprise to many.  These pricing changes would certainly  have implications on China's economy,  its export, the stock market and China's energy policies.

Are environmentalists barking up the wrong tree on China's CO2 problem

June 16, 2008

Analysis of:China Increases Lead as Biggest Carbon Dioxide Emitter | www.nytimes.com

The Netherlands' report indicates that China's CO2 emission is 14% higher than the U.S.  This came as no surprise.  While the trend is a threat to global climate change, the question of what China and the rest of the world should do about it remains unanswer.  Some nonconventional thinking may warrant consideration as a few observers feel that environmentalists might be barking up the wrong tree by persuading or pressuring China to adopt more green power or carbon capture technologies.

Would the MIT invention lead to large scale fuel cell applications?

June 2, 2008

Analysis of:MIT creates new material for fuel cells | web.mit.edu

The MIT researchers claimed that by creating a new membrane material for fuel cell, the performances of direct methanol fuel cell could be improved by 50%.  While the research results are impressive, the developmental work to translate the research into large scale manufacturing process to lower the system cost may take many more years. Furthermore, in order to promote fuel cell as a key technology in power generation, the availability of fuel, either hydrogen or methanol, at a competitive cost must be guaranteed.  That prospect is not promising in the short term.  While the MIT research contributed to improving cell performances, the problem to secure low cost hydrogen remains to be worked at.   

The impact of the Sichuan earthquake on China's energy sector

May 28, 2008

Analysis of:Another China Trade Opportunity | online.wsj.com

The WSJ article predicts that U.S. exports to China will  increase as a result of the earthquake and the rebuilding of its infrastructure, such as power networks and dams.  What would be the quake's impact on China's energy sector and what are the potential short and long term opportunities?  In exploring export trade opportunities, a careful analysis of the impact of the quake on the energy sector would provide clear insights about the specific market segments to target. 

China eying specific US green energy technologies

March 20, 2008

Analysis of:U.S. may gain as China goes green | online.wsj.com

China is investing $1 billion a month in energy infrastructure development which should be a huge business opportunity for US firms, according to US Senator Maria Cantwell after meeting with Chinese energy officials.  The timing of the meeting with the newly reorganized National Development and Reform Commission (NDRC) and Senator Cantwell's pro wind-energy background may offer some insight into China's interest in acquiring green energy technologies, such as smart grid control, to achieve its 20% energy & emission reduction target in the next 5 years. 

Canada again warming up to nuclear generation

March 17, 2008

Analysis of:Huge nuclear plant in works | www.thestar.com

The call for bids issued by Ontario's ministry of energy to four nuclear firms (AECL, Areva, Westinghouse and GE) implies that nuclear will continue to play an important role in the province energy future.  Ontario's move, coupled with Bruce Power's interest in developing nuclear generation for Alberta's oil sand project will give a huge boost to the nuclear power industry world wide.  Renewable energy generators such as wind and solar operators in Ontario would need to monitor the possibility of oversupply when these huge nuclear reactors, up to 1600 MW per unit, come on line and perform well.

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