GWI QUARTERLY

Goldwind International, Q2 2017, Volume 8

Pakistan Sachal Wind Farm COD Commenced

What’s new in the US? “Heart of Texas” and “Rattlesnake” Happened!

New Deal Sealed on Pasuquin 132MW Wind Farm in the Philippines

Goldwind AUS Acquired 530MW Stockyard Hill Wind Farm

2

I. GWI Business Performance p.3

II. Market Activities & News Highlight

TSA Contract Sealed for Philippine Pasuquin 132MW Wind Farm p.4

Goldwind to Build the Largest Wind Farm in Australia, in Deal with Origin Energy p.4

Rattlesnake Wind Farm Received Tax Financing in the US p.6

Roadshow for Goldwind 3MW(S) Platform Turbines in Local African Market p.7

Goldwind and Aurora Energy Announced Agreement for Wild Cattle Hill Wind Farm p.8

Pakistan Sachal Wind Farm COD Commenced p.9

Financial Close on Cuba La Herradura I Wind Farm p.10

Goldwind Acquired 160MW Heart of Texas Wind Farm p.11

Goldwind Africa Participated in Africa Energy Forum (AEF) p.12

White Rock Solar Farm in Australia achieved Financial Close p.13

Chairman of Saudi Electricity Company Meeting with Goldwind Delegation p.14

Saudi Vice Minister of Energy, Industry and Mineral Resources Visited Goldwind p.16

Strategic Agreement Reached between Goldwind and PowerChina p.17

Kazakhstan Tour During Astana 2017 World Expo p.18

Goldwind Africa Launched Scholarship for Technician Training p.20

III. Global Wind Industry Insight

Q2 2017 Global Wind Market Overview, State of Play and Short-Term Forecast p.22

GWI Key Markets Outlook p.24

CONTENTS

3

Q2 2017 has seen steady growth in terms of order

intake and market activities of GWI.

The first battle in the Philippines bodes well, with

Turbine Supply Agreement (TSA) signed for the

132 MW Pasuquin Wind Farm. GWI will provide 53

units of GW109/2500 turbines for the project.

Meanwhile, the White Rock Wind Farm in Australia

proceeds on schedule, installation of 32 units of

GW121/2500 turbines completed during the

second quarter.

Shipment has also been well arranged for Wind

Eagle Phase I and II projects to Pakistan and for the

DERE project to Turkey.

Goldwind Australia has just acquired the largest

to-be-built wind farm in the southern hemisphere.

The Stockyard Hill project with a total capacity of

530 MW is highlighted by the use of Goldwind

3MW(S) platform turbines.

I. GWI BUSINESS PERFORMANCE

By 30 Jun. 2017, Goldwind International cumulative：

- Signed contract in capacity terms, 1,979.75MW

- Shipped capacity, 1,334.25 MW

- Installed capacity, 1,242.75 MW

Table: Business performance of GWI, broken-down by turbine platforms (by 30 June 2017)

PLATFORMS SIGNED SHIPPED INSTALLED AVAILABILITY

750 KW 29.25 MW 29.25 MW 24.75 MW 98.95%

1.5 MW 702 MW 555 MW 535.5 MW 99.44%

2.5 MW 1247.5 MW 750 MW 682.5 MW 98.66%

SUBTOTAL 1978.75 MW 1334.25 MW 1242.75 MW —

More details on our project development and

market activities to follow in SECTION II…

4

II. Market Activities & News Highlights

TSA Contract Sealed for Philippine Pasuquin 132MW Wind Farm

Goldwind and Powerchina Shanghai Electric Power Design Institute Co., Ltd.

(SEPD) recently signed Turbine Supply Agreement for the Pasuquin wind power

project in the Philippines, total capacity 132 MW. Goldwind will supply 53 sets of

GW 109/2500 PMDD wind turbines for the project and O&M service.

The seal of the deal signifies that Goldwind has successfully broken into the

Philippines market. This is also the first time that PMDD technology and Chinese

wind turbines land on the market.

The Pasuquin wind farm is located in the northern part of Luzon Island. The project

is scheduled to commence construction from the second half of 2017, and

complete installation in late 2018. It will open the window for Goldwind to increase

its visibility in the country and Southeast Asia.

Though not an easy market to land on, Goldwind Asia team has spared no efforts.

Goldwind intends to build a local team in due course to help create job

opportunities while contributing to the development of renewable energy industry

in the country.

More wind power projects are expected in the Philippine wind market.

Goldwind to Build the Largest Wind Farm in Australia,

in Deal with Origin Energy

Goldwind acquired the largest to-be-built wind farm project in Australia.

From a commercial perspective, this represents another firm step of

Goldwind internationalization; an industrial perspective, this deal signifies

our unswerving determination towards clean energy development.

8 May 2017, Goldwind announced it has agreed to purchase the Stockyard

Hill Wind Farm project in Victoria, Australia from Origin Energy for a price

of AUD $110 million. Origin Energy has also agreed to purchase all the

electricity and renewable energy certificates (RECs) produced by the

project until 2030 under a power purchase agreement (PPA). The PPA

signed for this 530MW Stockyard Hill Wind Farm power purchase

agreement is by far the largest of the kind in Australian wind power market.

Luzon mainland in red, its

associated islands in maroon.

Pasuquin wind farm location

5

Goldwind to Build the Largest Wind Farm in Australia,

in Deal with Origin Energy

The Stockyard Hill wind farm is a high quality large-scale wind farm with planned 530MW capacity in western

Victoria. Upon completion, the wind farm will produce sufficient electricity to supply 400,000 average Victorian

houses.

Goldwind’s successful acquisition of the Stockyard Hill Wind Farm demonstrates the strength of Goldwind’s 3S

Smart Wind Turbine technology and its potential to drive down the cost of renewable energy in Australia.

Goldwind Australia will work closely with the host landowners and the local community as the project is

prepared for construction. Goldwind Australia will arrange project funding and will deliver the wind farm under

an EPC contract (Engineering, Procurement and Construction). In addition, Goldwind will also perform

operation and maintenance for the Stockyard Hill wind farm over its 25-year life cycle.

Goldwind Chairman Mr Wu Gang said, “Goldwind is delighted to have been selected by Origin Energy to

deliver the Stockyard Hill Wind Farm and to supply renewable power from the project to Origin until 2030. This

project will make a material contribution to achieving Australia’s 2020 Renewable Energy Target. This is the

largest wind power purchase agreement seen in Australia.”

“Goldwind recognizes the strong leadership being shown by Origin Energy in the transition to a lower carbon

emissions energy sector, Goldwind is also committed to this transition.” Said Wu Gang.

6

Goldwind Technology announced an agreement

with MidAmerican Wind Tax Equity Holdings (a

Berkshire Hathaway Energy subsidiary) and Citi

Group on tax equity financing for the 160MW

Rattlesnake wind farm project located in McCulloch

County, Texas.

“We are very pleased to partner with world-class

institutions, Berkshire Hathaway Energy and Citi, on

this innovative and breakthrough deal. Their

support is a testament to the performance and

reliability of Goldwind’s Permanent Magnet Direct

Drive (PMDD) wind turbine technology, with its

industry-leading availability,” said Mr. Wu Gang,

Chairman of Goldwind. “Goldwind will continue

our internationalization strategy.”

Rattlesnake Wind Farm Received Tax Financing

in the US

The approximately $250 million Rattlesnake Wind

Project, utilizing 64 Goldwind GW 109/2.5MW

PMDD wind turbines, will bring significant

economic benefit to the community of McCulloch

County and support around 250 well-paying

construction and service-related jobs. Once

operational, the project will be Goldwind’s largest

US wind project to date.

Goldwind originated and structured the acquisition

and financing of the Rattlesnake Wind Project,

being the first of its kind for a Chinese wind energy

technology company. This joint-investment also

marked as overall bankability of Goldwind wind

turbine.

27 April 2017 unveiled a significant milestone for Goldwind in the US wind market. The 160MW Rattlesnake

Wind Farm project received tax financing, the first of its kind for a Chinese wind energy technology company.

7

In early May, when weather still chilly

and wind breezing, Goldwind Africa

team launched a roadshow in Cape

Town to present and promote

Goldwind’s new 3MW(S) Platform

Smart Wind Turbine technology to

local key clients.

Against the background that

Goldwind Africa submitted bidding

proposals with the new 3MW(S)

Smart Wind Turbine technology on

three projects in partner with EDF

and one with Juwi in South Africa, an

official presentation of the new

platform seemed imminent to

unveil.

Cape Town is where most of

Goldwind Africa’s key partners are

based, the ideal hub for promotional

activities. The team visited several

clients, including EDF, Mainstream,

G7, Building Energy and Juwi, in

addition to a couple of consulting

companies with whom Goldwind

Africa has established close

relations, such as DNV GL, Mott

MacDonald and OST Energy.

During the introduction of the 3MW(S) platform turbines and an

informative Q&A session, the team presented the distinctive features

and advantages of the technology and discussed with clients the

future development of the technology, contributing to the

reconsolidation of market confidence.

In addition to promoting Goldwind 3MW(S) platform turbines, the

roadshow also brought new business opportunities. In countries such

as Ethiopia, Kenya, Zambia, Mauritius, Ghana and other emerging

markets, renewable energy is becoming a promising sector. Clients

proposed to Goldwind Africa team several preliminary business

models and discussed the possibility of co-development and IPP

investment etc.

The roadshow made Goldwind 3MW(S) platform its official debut in

Africa. In addition, thorough communication with local partners has

given rise to fresh ideas on market development and opened new

windows to other parts of the continent. A strengthened relationship

with clients in the future is envisioned both in and beyond the

renewable sector.

Roadshow for Goldwind 3MW(S) Platform Turbines

in Local African Market

The 3MW(S) Platform made its debut

in Africa. The roadshow also brought

potential business opportunities for

Goldwind Africa team. It would also

help further enhance Goldwind’s

visibility in Sub-Sahara Africa.

8

Goldwind and Aurora Energy Announced Agreement for Wild Cattle Hill Wind Farm

The 144MW project in Tasmania will contribute to local economic and social development.

On 6 June, Goldwind reached an in-principle

agreement with AURORA Energy to construct a

144MW wind farm at Cattle Hill in Tasmania’s Central

Highlands. Aurora Energy is a Tasmanian

Government-owned electricity retailer, which has an

obligation to purchase a certain number of

renewable energy certificates to comply with

Australia’s national renewable energy legislation.

Goldwind’s long-term partnership with Aurora

Energy and the cooperation on the wind farm will

assist Aurora Energy to meet its renewable energy

obligations till 2030.

Aurora Energy CEO Rebecca Kardos said the energy

retailer was pleased that it was partnering with a

Tasmanian project of such significance. “We

strongly support the development of further

renewable energy in Tasmania, and this project will

help strengthen Tasmania’s energy security,” Mrs

Kardos said.

The agreement represents a significant commitment

by Aurora Energy which enhances Tasmania’s

renewable energy credentials and delivers local

benefits to both its customers and the community.

The Wild Cattle Hill Wind Farm project is backed by

Goldwind, who is also responsible for the

development of other major wind farms in Australia.

Goldwind Australia Managing Director John Titchen

said construction of 49 wind turbines is planned to

commence in September 2017, with the $300 million

wind farm expected to provide a significant economic

contribution to the State.

“The project is expected to employ more than 150

people during construction and have up to 10

permanent maintenance staff when fully operational

in 2020,” Mr Titchen said. “We are particularly

excited to have reached this stage of the project given

our long interest in developing a project of this nature

in Tasmania.”

9

10 April 2017 marked the Commercial Operation Date (COD) of Goldwind Sachal wind farm project in Pakistan

upon its completion of a consecutive 168-hour commissioning test. Afterwards, the warranty contact of the

project also entered into force from 10 May. The 49.5MW Sachal project represents the third wind farm in

Pakistan that is supplied by Goldwind turbines and that has seen successful COD, another milestone in the

Pakistani wind power market.

Sachal project is located in Sindh province in the east of Pakistan, EPC contracted by PowerChina. Goldwind

supplied 33 sets of GW 77-1.5MW wind turbines for the project, total capacity 49.5MW. During the 7-day

commissioning period, all turbines achieved 99.85% availability, which once again proved the performance

excellence of Permanent Magnet Direct Drive technology.

One of the critical constraints to Pakistan’s socio-economic development is power shortfall. Recent years have

seen closer bilateral ties in China-Pakistan energy cooperation under China’s strategic deployment of “Belt

and Road” initiative and “China-Pakistan Economic Corridor”. The Sachal wind farm is among the 14

priority projects under China-Pakistan energy cooperation framework, and it also represents the first

renewable energy project under the Belt and Road initiative that has signed financing contract.

The implementation of the project was anything but an easy task. The project team worked closely with local

partners under extreme weather condition of over 40℃ in the wild and desolated dessert. However, the

unfavorable natural conditions couldn’t beat them down. The team’s work was recognized and appraised by

not only the project owner, but also third parties including representatives from the local grid, supervisory

team and various international companies. Sachal wind farm set an exemplary standard for future projects.

Pakistan Sachal Wind Farm COD Commenced

The 49.5MW Sachal project represents the third wind farm in Pakistan that

has been supplied with Goldwind turbines and that has seen successful COD,

another milestone in the Pakistani wind power market.

10

Financial Close on Cuba La Herradura I Wind Farm

The three and a half years’

efforts of Goldwind South

America team are paying off,

a bit late than expected, but

better than never…

Now, the Cuba La Herradura I

Wind Farm project finally

closed financing.

In December 2013, Goldwind and Avic International established a

consortium and jointly signed the commercial contract for the

51MW La Herradura Phase I wind farm project with Cuba Energy

Import Company (Energoimport).

As agreed with Energoimport, the consortium would be

responsible for the design, equipment supply, technical support,

commissioning, and 2-year warranty and O&M for the project. The

Phase I project would utilize 34 units of GW 77/1500 PMDD wind

turbines and would receive financing from Exim Bank of China for

project construction. Goldwind South America team has been

actively following the negotiation of the project while preparing

for its execution.

In April 2016, China Exim Bank approved the loan planning,

followed by the approval of loan underwriting from Sinosure.

However, Cuba government proposed a change to the clauses in

the loan agreement, which resulted in the reopening of contract

negotiation from July 2016. After almost a whole year’s effort, all

the details in the financing agreement were agreed upon, contract

eventually signed on 23 June 2017.

Cuba has been seeking to lose its dependence on fossil fuel energy. As such, renewable energy

programme is on the government’s agenda. To date, Cuba has planned 13 wind farm projects

with a total capacity of 690MW, installation to complete by 2030.

Even though financing negotiation of La Herradura Phase I wind farm prolonged for years, the

preparation work was never stalled. As the first large-scale wind farm project to start construction

work in Cuba, it hosts great significance in Cuba’s new energy strategy.

La Herradura Phase I project is Goldwind’s second project in Cuba, but the first of a megawatt-

scale wind farm to roll out. Goldwind also plans to provide long-term O&M service for La

Herradura Phase I project.

11

On 24 May, Goldwind announced an

agreement with Renewable Energy

Systems Americas (RES) to acquire the 160

MW Heart of Texas Wind Project. Following

the acquisition of Rattlesnake project by

Goldwind, this marked the second deal

with RES Group, just one year after the first

transaction.

The 160 MW Heart of Texas Wind Project is

also located in McCulloch County, Texas,

where the wind resource is favourable and

LCoE is most competitive. The project will

utilize Goldwind GW 121/2.5MW wind

turbines.

“The partnership with RES on the Heart of Texas wind project

further demonstrates the strong accreditation of Goldwind’s

industry-leading Permanent Magnet Direct Drive turbine

technology in the US wind market,” said Vikaas Rao-

Aourpally, Vice President of Sales and Business Development

for Goldwind Americas. “We are proud to again partner with

RES, a leading renewable energy developer and constructor to

continue to grow Goldwind’s presence in the Americas.”

“RES is pleased to work with Goldwind again to sign the Heart

of Texas sales transaction,” said Brian Evans, Chief

Development Officer of RES in the Amercas. “This wind

project will bring economic benefits to the Lone Star State,

thus helping us meet our mission of providing a low carbon

future for all.”

Goldwind is in the process of arranging a financing package in

partnership with top-tier financial institutions that will include

construction and tax equity financing and a long-term ERCOT

fixed price hedge for power production. In April 2017,

Goldwind received tax equity financing commitments from

Berkshire Hathaway Energy and Citi for the approximately

$250m Rattlesnake Wind Project.

Goldwind Acquired 160MW Heart of Texas Wind Farm

In the 17th Century, Mayflower shipped the first group of

Pilgrims to the “New World”.

In May 2017, Goldwind USA embraced an early harvest

in this New World: Goldwind acquired the 160MW “Heart

of Texas” Wind Farm project, a second-time joining hand

with RES Americas.

12

Goldwind Africa Participated in Africa Energy Forum (AEF)

This year, the Africa Energy Forum (AEF) was held in Copenhagen, Denmark, from 6th

to 9th

June. AEF is a

specialized conference in the energy sector with focus on renewable energy development in the African continent.

Participants mostly come from Africa but there was also a wide coverage of international companies with energy

business in African countries. Government departments, utilities, IPP developers, sponsors of renewable projects,

banks and consulting firms, etc. are most widely represented.

It was roughly estimated that over 500 entities were represented in this year’s AEF. Ministers from more than 10

African countries participated in the conferences and discussion sessions, a great opportunity for companies, such

as Goldwind, which are devoted to African renewable energy market, to have a well-informed knowledge regarding

Africa’s policy emphasis and its demand as well as the critical issues pending to be addressed. Other major

participants also included Goldwind’s several long-term business partners including Mainstream, Engie, IFC, and

DNV GL etc., covering developers, sponsors, operators, lenders and consulting firms.

Goldwind Africa attended the AEF 2017 and made full use of the networking opportunity to meet with several

developers that are active in the African market, including Quantum, Mainstream, Old Mutual, Building Energy,

Elicio, Gaia, and Eleqtra. In addition, the business development team also engaged with financiers, EPC contractors,

renewable energy operators and wind association representatives from other major wind power countries.

International forums such as AEF serve as valuable channels for GWI regional subsidiaries or centers to maintain

and strengthen their communication with international clients as well as local and regional business partners.

AEF consists of an exhibition zone and a series of conferences and panel sessions, where energy plans,

challenges and opportunities in Africa’s energy development are discussed. In terms of developing Africa’s

energy sector, tapping the investment potentials from Northern European countries is one of the reasons that

the Forum was held in Denmark. Northern Europe has an advanced industry in clean energy technologies and

investment prospects in Africa, which could considerably benefit the sector’s growth in the continent.

13

White Rock Solar Farm in Australia achieved

Financial Close

On 10 May, Goldwind announced that White Rock Solar

Farm in northern New South Wales has achieved

Financial Close. The White Rock Solar Farm will be a 20

MW solar photovoltaic (PV) power plant located adjacent

to the northern end of White Rock Wind Farm, part of the

solar-wind hybrid renewable energy facility for the New

England Tablelands. It is expected to generate, in the first

year of operation, enough electricity to supply the

equivalent of approximately 7,200 average NSW homes.

“The award of a large-scale solar competitive grant by

the Australian Renewable Energy Agency (ARENA) has

led to White Rock Solar Farm achieving Financial Close.

The ARENA large scale solar initiative has been successful

in stimulating strong competition and innovation among

Australian solar projects.” Said Laura Jeffrey,

Development Manager for the project.

The project is designed to benefit significantly from

sharing part of the wind farm infrastructure, including the

grid connection and access tracks. This will maximise the

use of available facilities without requiring construction

of additional facilities elsewhere, which is estimated to

unlock over $5 million of savings. In addition, co-location

of wind and solar provides numerous benefits such as

complementary energy generation patterns, and

reduced environmental impacts and project cost.

The project investment of $41.4 million benefits from

$5.4 million funding support provided by ARENA

through its large-scale solar competitive round. The

remaining funding consists of $25million debt from

from the Agricultural Bank of China Limited Sydney

Branch and $11 million equity from Goldwind.

Construction is planned to commence in July 2017,

with a target for completion in January 2018. The

main engineering, procurement and construction

contract has been awarded to UGL. The project

expects to employ up to 75 people on site at its

construction peak and 3 people as ongoing

operational and maintenance staff. Like the White

Rock Wind Farm, the project will launch a Local

Business Participation Program as a key initiative to

identify capacity in the local community and

maximise opportunities for local suppliers to

participate in the project.

White Rock Solar is Goldwind’s second wind-solar

hybrid project following the 10MW Gullen Solar

project which is now at an advanced stage of

construction.

For those familiar with Goldwind

Australia’s White Rock Wind Farm,

here comes its sister project, White

Rock Solar Farm…

14

H.E. Mr Saleh, Chairman of Saudi Electricity Company,

Meeting with Goldwind Delegation

A meeting between Goldwind Delegation and Saudi Electricity Company was held on

16 May 2017 in Marriott Hotel in Beijing, where H.E. Mr Saleh, Chairman of Saudi

Electricity Company resided during his visit to China. Both parties exchanged views on

how to strengthen cooperation in Saudi wind power sector.

Mr Wu Kai, Executive Vice President of Goldwind extended warm welcome to Saudi

delegation led by Mr Saleh. Upon introducing Goldwind business development in the

global wind power market, Mr Wu Kai expressed strong support for cooperation in

Saudi’s wind power projects.

The two sides also discussed the possibility of a multi-dimensional partnership to

achieve mutual benefit and joint development.

Mr Saleh also congratulated Goldwind on its success in passing the pre-qualification

session, a first step to enter Saudi’s wind power market. He also highlighted the global

reputation of Goldwind and especially its achievement in China and Pakistan with its

mature technology and rich experience. Saudi Electricity Company attached great

importance to its cooperation with Goldwind. Saudi Arabia has rather solid and

mature industry foundation, especially in light of the localization of steam turbine

manufacturing in Saudi by a couple of Top 500 Companies including GE and Siemens.

These efforts had also paid off well.

Mr Saleh wished for further exchanges with Goldwind to seek for extended

cooperation in even broader areas, to witness joint development for both sides.

15

Above：Group photo with H.E. Mr Saleh, Chairman of Saudi Electricity Company (Left 5)

Below：H.E. Mr Al Salem, Vice Minister of Energy, Industry and Mineral Resources (MEIM) of Saudi Arabia

visited Goldwind Headquarters in Beijing

16

Goldwind headquarters in Beijing had the honour to receive H.E. Mr Al

Salem, Vice Minister of Energy, Industry and Mineral Resources (MEIM) of

the Kingdom of Saudi Arabia on 16 May. The Delegation of Mr Al Salem was

on a mission in Beijing for the Belt and Road Forum for International

Cooperation.

Mr Wu Kai, Executive Vice-President of Goldwind, and Mr Andreas Dupuis,

Deputy General Manager of Goldwind International, attended the meeting

with Mr Khalid Al Salem.

H.E. Mr Al Salem, Vice Minister of Energy, Industry and

Mineral Resources of Saudi Arabia Visited Goldwind

Saudi’s wind is about to blow......

While Goldwind has just been qualified

as a technical member to participate in

its renewable auction, the timing of

the visit was quite well spotted.

Mr Al Salem, in his competence as MEIM Vice Minister, also oversees Saudi’s National Industrial Cluster

Development Program (NICDP). As such, a wide coverage of agenda including national industry development

and investment promotion falls under his purview.

In effect, the timing of the visit is well-spotted. On 20 February, the Renewable Energy Project Development Office

(Repdo), affiliated under MEIM, launched the RFQ for the first round of Saudi renewable projects: 300MW for

solar and 400MW for wind. Goldwind International is privileged to be qualified as a technical member, and is the

only Chinese wind OEM that passed pre-qualification. The development of renewable energy projects in Saudi

Arabia is subject to a certain extent of localization requirement, with which foreign OEMs need to comply. Such

industrial development requirements fall under the purview of NICDP, and the meeting addressed the localization

policy for renewable projects.

Mr Al Salem briefly presented the background of Saudi renewable energy auction plan, its state of play and future

targets, as well as the role played by MEIM in the programme. He expressed concerns for Saudi’s over-reliance

on fossil fuel and the importance of renewable energy to diversify energy sources and to protect the environment.

In addition to promoting clean energy, Mr Al Salem also explained his vision to nurture the industrial chain for

Saudi’s national renewable energy sector. In light of this, MEIM expects the best efforts to localise supply chains

from foreign participants, and the Ministry would provide subsequent support.

Mr Wu Kai also highly praised Saudi’s determination to develop renewable energy. Goldwind Technology, as a

world-leading wind power solution provider, would like to work in all realms, including technology, localization

compliance and finance, with Saudi government to development wind farms.

17

From a practical perspective and the experience in South African wind market development, Mr Andreas

Dupuis also suggested that the local content policy should follow a heathy path; otherwise it would dampen

the enthusiasm of participating parties in pursuing the cause, or even stymie the nation’s renewable energy

ambition.

Mr Al Salem took note of the concerns and explained that several proposals were being deliberated in this

regard. Following the meeting, Mr Al Salem paid a visit to the factories in Site I and Site II of Goldwind

Headquarters in Beijing as well as Sinoma, one of Goldwind’s blade suppliers. Mr Al Salem spoke highly of

Goldwind’s achievement and expressed his wishes that Goldwind could bring the advanced technologies to

the Saudi market.

Strategic Agreement Reached between

Goldwind and PowerChina

On 23 June, Goldwind International Holdings (HK) Ltd. signed Strategic Cooperation Framework Agreement with

PowerChina International Group Limited in Beijing, which opened a new page for the two parties to jointly

develop international market.

Witnessed by Mr Wang Haibo, President of Goldwind, and Mr Song Dongsheng, General Manager of

PowerChina International, the cooperation agreement was signed by Mr Pan Yantian, General Manager of GWI

and Mr Mou Guanhua, Deputy General Manager of PowerChina International.

Mr Wang Haibo expressed gratitude to PowerChina International for their long-standing support to Goldwind, and

presented Goldwind’s international strategy and business deployment, new products and technologies, and

creative business models etc. Goldwind is the market leader in Permanent Magnet Direct Drive (PMDD) technology

and has been seeking new paths to develop global business. It continues to devote itself to R&D to reduce the

levelized cost of wind electricity, making the industry a more competitive sector compared with alternative energy

sources. The partnership will give full play of each other’s advantages to deepen cooperation, jointly exploring

various opportunities in the global market.

The meeting was held in an

amicable atmosphere, where Mr

Song Dongsheng expressed his

willingness to contribute with

PowerChina’s rich experience in

EPC projects and its marketing

channels to further cooperation

with Goldwind. Given the

favourable market conditions to

develop wind power, the joining-

hand of the two companies to

march into international business

will bring benefits for both parties.

18

The 2017 Astana Expo is themed “Future Energy”. This is the first

Expo hosted in a Central Asian country.

The theme of China Pavilion is "Future Energy and Green Silk Road",

focusing on tackling energy crises and promoting energy sustainable

development in the future.

The Xinjiang Week (28-30 June) activities further reflect the close

cultural and geographic ties it shares with Kazakhstan, endeavouring

to promote co-development and mutual benefits.

Kazakhstan Tour During Astana 2017 World Expo

The visit started with Nazarbayev University, a research-oriented

higher education institute where scholars and scientists are

nurtured and cultivated. Chairman Wu Gang had a constructive

discussion with the university Provost and Vice President for

innovation, and exchanged views with junior scholars on the

prospect of renewable energy and electric grid digitalization in

Kazakhstan. The University’s motto, “to lead, to innovate”,

demonstrates its emphasis on science and innovation, an

essential value resonated by Goldwind. The visit to Nazarbayev

University has elaborated the great emphasis Goldwind attaches

to talent training and the high expectation it holds on the

development of renewable energy in Kazakhstan.

The delegation turned to the power industry on the second day

when Goldwind delegation paid a visit to Kazakhstan national

grid company (KEGOC) and met with competent officials in

charge of grid connection and planning as well as renewable

power settlement. Upon a better understanding of the state of

play of Kazakhstan’s grid system and its renewable energy

development plan, Chairman Wu Gang then presented the

distinctive advantages of Goldwind turbines in terms of grid code

compliance, a feature highly praised by the counterparts.

The opening ceremony of the Xinjiang

Week in Astana World Expo also warmly

received Chairman Wu Gang, who later had

a constructive exchange of views with high

ranking officials from the China Council for

the Promotion of International Trade

(CCPIT) and Xinjiang Autonomous Region,

as well as with the Chinese ambassador to

Kazakhstan. Goldwind was privileged to be

selected as the only Xinjiang enterprise with

an exhibition booth in the China Pavilion, a

demonstration of both its technological

advancement and the company’s emphasis

on the Kazakh market.

From 26 June to 30 June 2017, Goldwind delegation, led by Mr. Wu

Gang, Chairman of the Board, visited Kazakhstan and participated

in the Xinjiang Week during the Astana 2017 World Expo themed

“Future Energy”.

The tour yielded fruitful results in mutual confidence-building and

agreed on a project MoU. The prominent importance of Kazakhstan

in Goldwind’s international strategy is self-explanatory.

19

During the China-Kazakhstan trade promotion fair, a Memorandum of Understanding (MoU) on

co-developing the Jungar Gates 72 MW wind farm project was also agreed upon between

Goldwind and two other Kazakh companies. Kazakh market has always been high on Goldwind’s

agenda and Goldwind has expressed in various occasions its determination to cultivate its

renewable energy industries.

To date, Goldwind has already set up a representative office in Astana and employed a local electric

engineer. It will continue to keep a close eye on the development of Kazakhstan energy industry

and potential market opportunities.

20

For the long-term and sustainable development of South

Africa’s wind industry, a capacity-building oriented

scholarship programme was launched by Goldwind

Africa. Half a dozen local technicians were selected as

participants to the programme. The launching of the

scholarship echoes the dedication of Goldwind Africa to

the local industry and community.

In support of enhancing skills development

in the Wind Industry in South Africa and

celebrating Global wind Day 2017, the

Trustees of Goldwind Africa Empowerment

Trust (GWAET) are pleased to announce a

scholarship for six local wind turbine service

technicians to undertake the newly

introduced Global Wind Organisation’s

(GWO) Basic Technician Training (BTT) at

SARETEC.

These six technicians recently completed

their 5 months wind turbine service

technician training at SARETEC and have

excelled on the program. The Director of

SARETEC, Naim Rassool is excited to partner

with Goldwind Africa Pty Ltd (Founder of

GWAET) in creating this opportunity for their

newly qualified graduates and mentioned

that: “SARETEC is currently in the process of

getting ready to be a certified GWO training

centre to offer both the Basic Safety Training

and Basic Technician Training and are

looking forward to offering the recently

launched BTT qualification to the top

students emanating from our most recent

training program.”

The GWO mentions that an objective for

them is to develop common industry training

and best practice Standards for health and

safety as a vital and necessary way forward to

reduce risks for personnel in the wind

industry working on site and to reducing

environmental risks across the wind industry.

According to GWO this Standard has been

developed in response to the demand for

recognizable Basic Technical Training in the

Goldwind Africa Launched Scholarship for Technician Training

21

industry, and has been prepared in co-operation between the members of GWO based on risk

assessments and factual incident and accident statistics pertaining to the installation, service and

maintenance of wind turbine generators and wind power plants.

Lungile Mashele, Chairperson of Goldwind Africa Empowerment Trust stated: “Skills development,

particularly in the renewables industry is extremely important for job creation as well as stimulating a

sustainable green economy. Further to that, GWAET believes in re-training so as to absorb potential job

losses from other sectors. We are proud of our students and wish them well in obtaining their

qualification.”

Jianqing Zhou, CEO of Goldwind Africa (Founder) stated “Our primary goal of the establishment of the

GWAE Trust is to support skills transfer in South Africa. Through project activities Goldwind Africa intends

to source traditional local skill sets and transform these skills into Global wind energy skills sets. Whilst

there are delays in financial close and uncertainty of SA renewable energy markets progressing, we are

glad to be able to support the advancement of Wind Service Technician graduates enrolled in the GWO

programme.”

22

According to the latest quarterly market update of

Bloomberg New Energy Finance (BNEF), core markets

across EMEA, APAC and North America have yet again

smashed records with bumper 1Q 2017 installation

figures. Meanwhile Latin America grinds to a halt after

auction delays in Peru and Argentina and cancellations

in Brazil. Offshore wind made headlines in April after

three projects won the right to build zero-subsidy

offshore wind in German waters.

Short-term onshore demand forecast: BNEF expects

some 54.3GW of installations in 2017 – 2% more than

2016 which was the second-best year on record.

Medium to long-term onshore forecast: BNEF

maintains its outlook that activity will continue to pick

up after 2018. This will be driven by growth in the US

and emerging wind market of India. European

demand remains flat but the region will continue to

punch out 10 GW annually until 2020.

EMEA: Europe has carried its form from 2016 into

2017. BNEF expects the region to commission 12.9

GW of onshore wind with core markets of Germany,

the U.K. and France putting in the hard work.

Meanwhile, Turkey is set to post another 1GW+ of

capacity in 2017.

AMER: The U.S. commissioned 1.7GW of capacity in

1Q 2017– the largest since 2012 – for new onshore

wind. These projects are likely part of the first push of

projects that qualified by year-end 2016 for the 100%

Production Tax Credit (PTC). It is expected that the

Americas region will install 11.9GW of onshore wind

this year, of which 7.5GW will be located in the U.S.

APAC: Onshore wind curtailment in Northern China

continues to affect new-build capacity in 2017.

Meanwhile India is tearing up the rule book, after

installing more capacity in 1Q 2017 than it did during

the whole of 2016. In Thailand, the outlook for new

build is positive after the government confirmed that

the approved wind projects will continue as planned.

Q2 2017 Global Wind Market Overview,

State of Play and Short-Term Forecast

III. Global Wind Industry Insight

23

Offshore: Dong and EnBW have both won the right to build zero-subsidy offshore wind projects in

Germany’s first transitional auction. These results come after back to back record bids in the 2016

Danish and Dutch tenders. Despite being good news for the sector, Dong and EnBW still need to

make a final investment decision and could in theory pull out of the development, forking out 54

million euros and 90 million euros respectively in penalties.

Project financing and investment: Total new-build asset finance in 1Q 2017 dropped 21% from 4Q

2016 to $18.0 billion, and dropped 41% from 1Q 2016, making 2017 the lowest first quarter since

2013. European investment in new-build has flat lined the last three rolling quarters contributing to

general decline in investment.

Supply chain: Turbine manufacturer results are mixed. Both Vestas and Siemens Gamesa

Renewables reported strong earnings for 1Q 2017, but Nordex and Senvion have fared less well,

reporting earnings losses over the same period. BNEF maintains its turbine pricing index (China and

global) as well as operation and maintenance prices.

24

Editor’s note: In our quarterly release, we aim to

select one key country market from each of the seven

regional centers of Goldwind International, and

present briefly the recent development and short-

term forecast of the market. We take reference from

the data and analyses of third-party consultancies

including MAKE and BNEF. [p.24-26]

United States

Though US announced withdrawal from

Paris Agreement, its public and private

commitments to renewable energy will

help off-set some of the negative impacts.

The extended Production Tax Credit (PTC)

has pushed for an installation rush, to

continue till 2020. However, renewed PTC

policy has been equipped with sunset

provisions: dropping to 80%, 60% and

then 40% of its current value until it is

phased out by year-end 2019. For now,

only 80% of the PTC is available for

projects that start construction in 2017,

which is expected to hit the industry after

2020. Another uncertainty lies with tax

reform, which may also deter investment

in new projects.

The US market projections for the upcoming years:

USA (MW) 2017 2018 2019 2020 Subtotal

BNEF 7,471 8,526 9,387 10,910 36,292

MAKE 7,300 10,000 10,188 12,282 39,770

Turkey

Turkey has announced a 1GW onshore

wind project, which will be open to

bidders on June 27. The winning bid will

be eligible for a 15-year fixed feed-in

tariff (FiT) under a ceiling price of

$7/MWh, which is below the current 10-

year FiT of $7.3/MWh. However, reduced

wind tariff poses only one of the

challenges faced by bidders, a more

stringent local content requirement

another barrier.

Turkish market projections for the upcoming years:

TUR (MW) 2017 2018 2019 2020 Subtotal

BNEF 1,062 1,148 1,048 948 4,206

MAKE 825 715 1,325 1,400 4,265

Thailand

Although Energy Regulatory Commission

(ERC) had stopped accepting utility-scale

(<10MW) application for wind, existing

project pipeline in Thailand may finally speed

up the progress after Agriculture Land

Reform Office (Alro) confirmed that land

issues for already approved wind projects

were resolved. Competitive bidding scheme

with ceiling prices is not expected to publish

before 2018.

Thai market projections for the upcoming years:

THA (MW) 2017 2018 2019 2020 Subtotal

BNEF 193 312 200 300 1,005

MAKE 68 143 180 200 591

GWI Key Markets Outlook

25

Brazil

The Brazilian market is projected to continue

facing challenges and uncertainty in 2017. New

auctions are unlikely this year due to economic

recession and power oversupply. An auction for

developers to exit from their PPA contractual

obligations has been held, which bodes ill in the

short-term Brazilian market forecast.

South Africa

The REIPPPP has built up a large project pipeline,

but progress on the 4th

round has been put hold

due to South Africa’s state-owned utility’s

(Eskom) reluctance to sign PPAs. Nonetheless, the

President has announced that Eskom would

resume Round 4 projects, showing support from

the government on renewables.

Australia

Australian market is currently undergoing

shortfall of Large-Generation Certificates (LGC),

which has boosted high LGC price over AUD 85.

Market forecasts have been revised up due to

developers advancing projects aggressively to

capitalize on current certificate prices ahead of

the national large renewable energy target in

2020. Investment activities in renewables have

also seen increase.

Brazilian market projection for the upcoming years:

BRA (MW) 2017 2018 2019 2020 Subtotal

BNEF 1,260 2,760 1,232 1,920 7,172

MAKE 2,000 2,300 1,150 1,025 6,475

(Note: BNEF data is cited from a separate industry insight on BRA market, dated

21 June.)

South African market projections for the upcoming years:

ZAF (MW) 2017 2018 2019 2020 Subtotal

BNEF 636 710 668 687 2,701

MAKE 573 300 700 685 2,258

Australian market forecasts for the following years:

AUS (MW) 2017 2018 2019 2020 Subtotal

BNEF 415 791 1,565 100 2,871

MAKE 753 925 700 800 3,178

26

Saudi Arabia

Saudi Arabia’s National Renewable Energy Program (NREP) announced its shortlist of 24 bidders

qualifying for the first three rounds of renewable auctions. The first round wind project auction is 400MW

wind farm in Dumat Al-Jandal. The shortlisted bidders are categorized into managing members and

technical members. The winning projects, due online no later than 2019, will be the first step to Saudi

Arabia meeting its ambitious target of 9.5GW of renewable energy capacity by 2023. A second 400MW

wind auctions is set to open later this year. A 30% local content requirement will most likely apply for

renewable projects.

List of qualified bidders for wind projections (Goldwind is qualified as technical member):

Round 1 Managing + Technical member Managing member Technical member

Wind Acciona, Cobra Instalaciones y

servicios, EDF Energies Nouvelles,

Enel Green Power, International

Power (Engie), Gamesa, GE,

Marubeni, Masdar, Mitsui, Toyota

Tshusho

ACWA Power, JGC

Corporation, Kepco,

Nebras Power, SNC-

Lavalin Arabia, Sojitz

Elecnor, Enercon,

Goldwind,

Iberdrola, Siemens,

Voltalia, Vestas

Goldwind International Quarterly

Q2 2017, Volume 8

Editorial Office

Marketing & Business Development Department,

Goldwind International Holdings (HK) Limited.

Address

No. 8 Boxing 1st Road, Yizhuang BDA,

Beijing, China

Enquiries

Ms Yolanda Yan: yanyu@goldwind.com.cn

Media Contact

Ms Sofia Zheng: zhenglei2@goldwind.com.cn

GWI website

For more information, please visit our website

www.goldwindinternational.com