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Chinese To Supply 600 MW Wind Farm In Texas

Hugh Pickens sends in a Wall Street Journal report that Chinese banks will provide $1.5B to a consortium of Chinese and American companies to build a 600-megawatt wind farm in West Texas, using turbines made in China. The wind farm will be built on 36,000 acres, and will use 240 2.5-megawatt turbines, providing enough power to meet the electrical needs of around 150,000 American homes. The project will be the first instance of a Chinese manufacturer exporting wind turbines to the United States. China aims to be the front-runner in wind- and solar-power generation "The Obama administration is hoping a shift to renewable energy will inject new life into the US manufacturing base and provide high-paying jobs, making up for losses in other sectors. But while the US has poured money into renewable energy through tax credits and other subsidies, China has positioned itself to reap many of the benefits by ramping up its export machine."

16 of 453 comments (clear)

  1. Re:How is that sustainable? by Anonymous Coward · · Score: 5, Insightful

    They're making money and destroying a rival.

  2. China is taking the lead by BadAnalogyGuy · · Score: 4, Insightful

    What with all the rest of the cheap Chinese shit we Americans buy every day, what's the big deal with buying some more cheap shit to generate our electricity?

    Hey, cheaper turbines making cheap electricity. We're preserving the American Way of Life.

    1. Re:China is taking the lead by muckracer · · Score: 5, Insightful

      > Hey, cheaper turbines making cheap electricity. We're preserving the
      > American Way of Life.

      No, we don't. At least when you look beyond tomorrow morning. If all we can
      afford is cheap and ever more cheaper, our standard of living will eventually
      be just that: cheap crap. While in the meantime the Chinese raise theirs, have
      better and more quality products and can afford it easily.

      The Chinese are incredibly clever...they produce everything 'for cheap' just
      as we idiots want them to in our penny-wise, pound-foolish attitude. We give
      them our precious fruits of 'research and development' to produce the actual
      products. So even if they produce at a loss, it's a huge
      win-win-win-win-win-etc situation for them. They practically leapfrog over
      what took our economy years and decades to develop.
      For every factory producing goods according to our blueprints is one shadow
      factory a few miles further, producing the same exact item minus the
      brand-name. That will then be sold across all of Asia, including the 'chinese
      market' our western capitalists like to salivate over, for half the price than
      the identical 'original' item. In the end they not only got the know-how for
      free, but also manufacturing methods, perhaps even the machines to produce and
      then make money at the end with their own copies while our business has to
      fold as it can't compete by any margin at least on their asian market.
      That they sell turbines of all things to us should be shaking us to the core!

    2. Re:China is taking the lead by gnick · · Score: 5, Insightful

      That's not entirely true. You're partially right that, for Wal-Mart fodder, the vendor just says "Make something that looks like this as cheaply as possible." So, naturally, they supply crap that Wal-Mart can sell very inexpensively and their customers can use for 3 months and send to a landfill.

      However, even when specs say "We need this to last for 1000 years" or "We need baby formula - Poison-free, please", the Chinese are some of the worst offenders about using counterfeit goods. Using under-rated bolts and chains has been a major hassle for us. We've bought stuff with strict specs and have had failures under use that should have been well within the capabilities of the equipment. Fortunately (so far) the field failures haven't been catastrophic, but determining the cause of the failures is enormously expensive. They save a few bucks by using sub-standard steel and we spend thousands tracking down the cause of failure to "This isn't a 2000 lb load chain - It's failing at 1200 lbs." That also means that (now) when we buy stuff from Chinese vendors we have to do acceptance QA testing that would be redundant if we were buying from a more reputable source.

      So, in short, the Chinese do not always "build judiciously to spec".

      --
      He's getting rather old, but he's a good mouse.
  3. We can't even compete for THIS!? by HeckRuler · · Score: 4, Insightful

    I thought those huge blades were very difficult to manufacture and transport. I know for something this expensive they can customize a barge and do something special at the port, but I'm surprised this didn't give local producers an edge. And while I considered myself knowledgeable about the waking dragon, I'm somewhat surprised that they have the manufacturing chops to produce something this "high tech". I guess it's another feather in their hat that their businessmen can arrange this sort of deal. With Texas no less.

    Come ON people! Get it together!

  4. Capacity Factor by some_hoser · · Score: 5, Insightful

    I hate how articles talking about renewable energy never take into account the capacity factor of the production. Wind is about 30% or so, so the real average output will be more like 200 MW, unlike a nuclear or other plant with a capacity factor of 90+%. Yet still, they will be compared on their MAX output, not the AVERAGE.

  5. Re:Argh! by BadAnalogyGuy · · Score: 5, Insightful

    You're right, of course.

    Losing manufacturing to China is probably the largest problem we face as a country. Especially in fields of advanced manufacturing, it is strategically important to maintain a strong lead in the U.S.

    Some have said that we are moving away from a foundation of manufacturing and towards one of information management and service-oriented business. This is a truly horrifying prospect as both depend on a constant influx of *manufacturing* jobs to create demand for these new industries. Losing manufacturing to other countries means losing independence and self-sufficiency. We can't clean each other's pools forever.

    The other problem, though, is that China can undercut our labor by a huge amount. It used to be that the Japanese were saying Americans were lazy and overpaid. It took the Chinese and Indians to prove it. So even if we were to begin another "Buy American" program, we would still be at a disadvantage to overseas customers who would simply choose the cheaper Chinese products over the expensive American products.

    We are in a race to the bottom, and if we are to pull ourselves out of this death spiral it will be necessary to look to other failed states for examples of what not to do. No empire in its death throes has ever been able to save itself. England is doing a good job of coming back, but their once vast empire is now just a small collection of rainy islands in the North Atlantic.

  6. Re:Confessions of an by commodore64_love · · Score: 4, Insightful

    The summary is wrong.

    It should say China is lending *another 1.5 billion on top of the 1400 billion they've already loaned us for bailouts - just like Mr. Potter did in It's A Wonderful Life. First loan the money, then raise the interest, then take over.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  7. It makes sense, actually by Ritz_Just_Ritz · · Score: 5, Insightful

    They're suppressing competition by undercutting prices. This is easy to do if you've got a low cost labor pool and government backing (both overt in the form of subsidies and covert in the form of silent ownership by senior Chinese government officials). All the better that you can seek (and probably get) tax breaks from the government of the very country who's industry you're looking to hobble with your low prices.

    That said, there's nothing wrong with buying Chinese generators if they meet quality and price requirements. But I think this is a case where the US government has lost sight of the football here. Assisting a foreign power with the task of gutting an industry that was pioneered in the US and that may be important in future green energy markets around the world seems extremely foolish and short sighted.

  8. For all the Californians, wonder why TX? by Wrath0fb0b · · Score: 4, Insightful

    Of course, it's because a developer in Texas can just buy the land and build a wind farm.

    http://www.nytimes.com/2009/10/18/weekinreview/18galbraith.html?_r=3

    The irony is quite telling -- environmental regulations making it harder to build a renewable energy source. The most telling part of this (and recall that the New York Times was not a particular fan of this TX governor):

    But here again, Texas and California have behaved very differently. Texas set a strong renewable energy requirement back in 1999 (when George W. Bush was governor) -- and quickly exceeded it. Last year, 5 percent of the state's electricity came from wind power. California set a very high bar, requiring big utilities to get 20 percent of their electricity from renewable sources next year, although they are not expected to meet it.

    That is, measured purely by results, the track record of the state that doesn't give a shit is miles ahead of the state that makes a big complicated deal about caring.

    [ Aside: I'm not against environmental regulation by any means. At the very minimum, however, we ought to insist that the benefits a cleaner environment outweigh the costs of regulation. In cases like this where it seems like the regulations are actually counterproductive to the goals, well then the costs are truly wasted.]

  9. Re:Argh! by WindBourne · · Score: 4, Insightful

    Nope.
    First, losing parts of manufacturing to nations that free trade and have free money is NOT an issue. The money values change and then things will straighten up. China is not doing that. They have their money pegged to ours AND have trade barriers against the vast majority of goods.
    Second, this deal is going through FINANCED MOSTLY BY AMERICAN AND TEXAN GOV. The Chinese got in on a small amount of financing on this.
    Third, the Chinese plants are WELL KNOWN FOR BEING HORRIBLE. THey break down ALL THE TIME. There are American made plants that are great quality. Likewise, multiple companies out of EU as well. Sadly, GE makes theirs in China. But these 3rd party parts are PURE JUNK.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  10. Folly by MickyTheIdiot · · Score: 5, Insightful

    This is another great example of why giving money or tax breaks to the biggest corporations is no longer a winning strategy to promote job growth. The multi-national corps have a world-wide market to pull labor from and are only forced to buy local labor for a few on-site jobs. This is why I believe they should stop ALL money going to huge multi-national corps (who have their own R&D money anyway) and focus on getting micro-loans to smaller businesses who can't offshore their work as easily. Start preferring the little guy trying to start something on a local corner by his house instead of a corporation that really has no home or loyalty whatsoever.

    I thought Obama wasn't going to fall into this trap of giving money to huge corps who are simply going buy cheap foreign labor. I guess I was wrong.

  11. Re:The question on my mind is... by MickyTheIdiot · · Score: 4, Insightful

    Welcome to the country of whiners. Everyone here in the U.S. is all for solving problems unless it is going to inconvenience them for a half second.

  12. Re:How is that sustainable? by StormyWeather · · Score: 5, Insightful

    I live in west Texas, and I would have been one of the first posters here on my phone if I hadn't been about to get a root canal. Yes it sucked, but that's beside the point.

    WHY DON'T WE GET SOME DAMN POWER LINES FIRST!!!! I am so sick of driving around seeing all these turbines just sitting there idle on windy days because we don't have the transmission lines to get the energy out of here. Amarillo is like the third windiest city in the united states (and no Chicago isn't above us). Funny thing is informed people here know that wind power isn't our cure all, it's just a political football, and we it at the moment.

    1. We don't have transmission lines
    2. Even here we have calm days
    3. T Boone is like the most despised person in West Texas. There are what I think to be a lot of conspiracy theories about him here about him trying to steal all of our water, and using wind power as a conduit to do that. There is some anecdotal evidence to support the conspiracy theories, so it's hard to say that they are 100 percent false. What I do believe to be true is that he wants wind power to be huge because he could sell a crap ton of natural gas to generate electricity when the wind isn't blowing.

  13. Right. by sean.peters · · Score: 4, Insightful

    Because "making sure you're in the top 10%" is something you have total control over. It's not like the circumstances of your birth could possibly have anything to do with it. Here's a news flash: some substantial portion of the US wasn't born with silver spoons in their mouth. Their parents don't have enough money to send them to college, and in the absence of "government bailouts", it's all but impossible to afford to go on your own. How are people in this situation supposed to just make sure there in the top 10%? To say nothing of the fact that the top 10% is, well 10%. So you're perfectly ok with the idea that 90% of the population is going to spiral into poverty. Nice.

  14. Re:How is that sustainable? by cayenne8 · · Score: 5, Insightful
    I think one of the larger questions should be, why the fuck aren't we manufacturing these things in the US??

    I thought a lot of this push by the Obama administration et al was to put US citizen to work and boost OUR economy, not China...why is our government not pushing for all aspects of the alternative energy initiatives they are promoting to be done in the US? Where are the tax credits and incentives to US companies (established and especially startups) for developing and manufacturing in the US and employing US citizens? During the election campaigns, I recall hearing that the move to clean/green energy sources wasn't JUST for the health of the environment, but also for generating new jobs and industries for the US.

    I know China technically owns a lot of the US at this time, but, c'mon no one has been annexed yet, and this is not helping US citizens as much as home grown/developed/manufactured solutions would be...

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........