Offshore Wind In Shandong Province's Economic And Social Benefit Evaluation

Since the oil crisis in the1970s, issues of the sustainable energy supply and energy securityhave got much attention.In2005, the publishing of "Renewable Energy Law" firms thedetermination of the energy structure adjustment in China. In2012, most of China’s continuousfog haze weather make the Chinese pay more attention to the development and utilization ofrenewable resources. The wind energy resource, which is charactered of renewable, widelydistributed, non-polluting, has become an important direction of renewable energy developmentin the world. Offshore wind energy, compared to onshore wind power, has more stable windspeed and longer operating cycle, so its comparative advantages promises wind power energy asa kinds of alternative strategic resource, especially in China,which has an extensive coastlineand large population density. Meanwhile, it’s difficult for the onshore wind power to meet thedevelopment goals that we have set for low-carbon electricity production separately. Our desireis to achieve500million kilowatts in the "12th Five-Year" period and30million kilowatts ofwind power in2020.Jiangsu, Shandong, Shanghai, Zhejiang and other places will be the focus ofdevelopment planning area.Shandong peninsula surrounded by the sea, is located in the East Asian monsoon region. Itslarger offshore wind energy reserves, higher wind speed and more efficient wind power haveprovided basic conditions for the construction of large-scale wind farm in the naturalenvironment. Shandong Peninsula has been building the Blue Economic Zone which is based oncities such as Qingdao, Yantai and Weihai to support the development of wind power. However,compared to the onshore wind farm cost of investment, the investment costs of offshore windfarms seem to be much higher, and increased costs are mainly constituted of the infrastructure,the cost of installation, operation and maintenance as well as grid connection. In addition, thelong operation cycle of the sea wind power may leads to greater uncertainty of investmentincome. With the help of the key financial indicators of profitability analysis and the sensitivityanalysis, the final formation of economic benefit evaluation helps to guide rational investmentand commercial development. On the other hand, the construction of offshore wind farm willcause different breadth and depth of human environment, social environment, resources, environment and ecological environment, In view of the characteristics of wind powerdevelopment in Shandong province, we can establish the social benefit evaluation index systemand achieve the combination of qualitative and quantitative by means of fuzzy analytic hierarchyprocess. It also introduces the knowledge of economics and management into the offshore windpower project management. At the same time, through the comparison with the developedcountries and regions, we can find the gaps and draw lessons from the development experienceof success. All make great sense in the China’s transformation from a big country to powerfulcountry of energy sources and more concentration on quality rather than quantity.In the first step of this paper, it takes potential analysis of offshore wind energy resourcebased on offshore wind power theories, then it compares the project’s cost constitute of Europeanmajor offshore wind factories with that of Shandong Province, offshore wind power projects ofthe investment scale and cost, and further shows profitability analysis and financial sensitivityanalysis of offshore wind power projects in Shandong Province through the key financialindicators. Finally, it establishes a comprehensive evaluation model about economic and socialbenefits of wind power by tools of Fuzzy Analytic Hierarchy Process (FAHP) and figures out thetrend and measures of speeding up offshore wind power project.