China installs 20 GW of wind power in 2011

However, this robust growth belies an industry facing overcapacity, Jefferies says, noting that China still has around 20 GW of constructed but unconnected wind farm capacity.

As a result, wind turbines manufacturers will face headwinds, as demand will be under pressure as China rationalizes its wind power build-out.

China now has a backlog of about 20 GW of wind farm capacity. Therefore, the industry will need to rethink its development and expansion plans, especially because grid companies may only connect 15 GW to 16 GW of new wind power capacity this year, the firm says.