The manufacturer will have new subdivisions for China north, central and coastal, while retaining headquarters in Beijing.
This will help the company meet the regions’ differences in auction mechanisms and corporate power purchase agreements (PPAs), as well as "specific challenges posed in China’s coastal regions", Vestas explained.
"With this new organisational structure, we expect to further strengthen our position in the important Chinese market by transforming our business model to fit the new auction system", chief sales officer Juan Araluce said.
The move follows China’s National Energy Administration (NEA) launch in May of an auction mechanism for awarding future wind power projects in an attempt to reach grid parity.
Developers of new onshore wind projects in provinces yet to publish a 2018 development plan and of new onshore projects approved from the beginning of 2019 will now have to win capacity at auction, the NEA announced.
Offshore projects without assigned developers and new offshore projects approved from the beginning of 2019 must also compete in auctions.
Vestas’ restructuring of its Chinese sales unit also comes not long after the manufacturer restructured its Asian sales units. In February 2017, it split its Asian sales unit in two, with one branch for China and Mongolia and the other serving the rest of the Asia-Pacific region.
The latest restructuring also involves Vestas China reorganising its leadership team.
Chief financial officer Thomas Keller and vice president of product management Anne Vedel will serve as co-leaders. Senior vice president Kebao Yang will continue as non-executive chairman, with Juan Araluce as Vestas’ chief sales officer. Meanwhile, vice president of sales Ken Xu will "continue to be an instrumental part of the commercial efforts in China", Vestas stated.
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