Opportunities in the China Wind Energy Industry

China has access to abundant wind power resources. The country plans to increase its wind power base to 69, 076 MW by 2015. Led by the increasing electricity demand by 15 per cent per year in China, the wind power capacity has been doubling every year since 2005. In 2010, wind power capacity of 18,928 MW was added, taking the total installed capacity to 44,733 MW. Additionally, during the first quarter of 2011, wind power output grew more than 60 per cent to reach 18.8 billion kilowatt-hours. Owing to factors such as flourishing wind power equipment market, policies and tax benefit extended by government and carbon reduction targets by 2020, the wind energy industry is growing rapidly.

The report titled ‘Opportunities in the China Wind Power Industry’ provides a succinct, but deep dive analysis of the current status and overall growth of the wind sector in China. The report gives an insight into the key emerging trends in the sector and the current market performance. The information available in the report will enable the target audience in understanding the contemporary industry scenario. Besides this, the report also provides information regarding challenges faced in wind energy production. Additionally, it also highlights future growth prospects of the industry and the offshore wind potential present in the country.

‘Opportunities in the China Wind Power Industry’ is an outcome of the in-depth research and comprehensive analysis of the Chinese wind market. Moreover, the report provides a competitive landscape of the sector and sheds light on the operations/strategies of the key players. This will help the client in taking informed business decisions.

Key findings in the report include:

1. With the intensifying pressure from WTO and America, China has ended its subsidy of USD 92.55 per kilowatt for domestic wind turbine manufacturers. The subsidy was provided by the government to foster growth in the industry. However, the move will not impact the industry significantly as the local turbine manufacturers such as Sinovel Wind Group and Goldwind Science and Technology are planning to expand overseas to offset the minor losses.

2. The offshore wind energy potential in China is three times greater against onshore capacity, leading to the development of wind farms and turbines. The world’s largest offshore wind farm is under construction in Bohai Bay, China and is expected to be completed by 2020, with an energy production capacity of 1,000 MW.

3. One of the major hindrances, in the development of Chinese wind power market is the poor infrastructure that is unable to connect many wind turbines to larger electric grid. This is the major obstacle in future wind power development as several projects have to wait for months to get connected to the national grid. Due to poor incentives Chinese grid companies are unwilling to add wind power into their systems.

Companies Mentioned: Sinovel, Goldwind, GE Energy, Gamesa, Vestas