Research On Cost Improvement Of Wind Farm Project

Since the whole society generally agrees with the environmental utility of clean energy, wind power equipment manufacturing industry develops rapidly and more than 80 manufacturers emerge. The market has been relatively saturated and the industry is facing overcapacity. In order to seek development, in one way, enterprises have to strictly control project costs to achieve the company’s profitability targets; in the other way, enterprises must enhance competitive advantage for differentiation strategy to strive for greater market share in the future market competition. Therefore, this research work to improve project cost has strategic significance.Shanghai Electric Windpower Equipment Co., Ltd. is a new energy equipment manufacturing company specializing in R&D, design, manufacture and technical consultancy as well as general contracting of large-scale wind turbines. This paper firstly introduces the research background and the related references. And then the current situation of the company cost control is given. Datang Jishan wind farm project is taken as an example. The project is divided into initiation stage and execution stage for management, and the framework of company’s cost control is introduced. Some problems are found in project cost estimation, project budget and cost accounting. As the most important part of this case, the earned value method is used to help control the project cost and to solve the problems above. However, the traditional earned value method seems not produce a good effect on issues shooting. Then an improved earned value method, second-level earned value method, which referred to the critical path method is proposed, and the method can reduce the vibration of project cost estimation. Finally, some conclusions and suggestions are given, which can help to better manage the project cost when doing the similar wind farm project.