China to lead wind energy market in 2016

Xinjiang Goldwind Science & Technology has become the world’s largest wind turbine maker, the company announced today. In 2015, the Chinese-based wind energy generator installed huge turbine capacity in different regions that it overtook the world’s top two wind turbine maker; Denmark’s Vestas Wind System and General Electric of the US.

Goldwind by reaching the top spot ended more than 30 years dominance of European and the US companies. Analysts believe that 2015 was the year of China with respect to the development in the wind industry. China not just made 2015 another record year for the wind business but was home to five of the main 10 turbine producers on the planet, said Feng Zhao, a senior director in FTI’s energy practice. Wind power in the world’s second largest economy has grown at an increasing rate and in China alone more than half of the world’s total turbine capacity was installed, according to reports.

Despite being in the early stages, the wind power market in China surpassed the European Union (EU) wind market in 2015. Fueled by a surprising 30,500 MW of new installations in the country, the global wind power industry introduced 63,013 MW in 2015, representing a 22% year-over-year (YoY) market growth.

On the other hand, the US market achieved 8.6 GW of new installations on the back of a solid final quarter surge, and Germany drove a more grounded growth than anticipated in Europe with a record 6 GW of new installations, including 2.3 GW offshore turbine installations. In total, the global capacity achieved 432,419 MW toward the end of 2015, representing a 17% YoY growth.

As a result of producing extra-ordinary results in 2015, China edged past the EU wind industry with a combined capacity of 145 GW. According to a report published by Global Wind Energy Council, “The Chinese government’s drive for clean energy, supported by continuous policy improvement, is motivated by the need to reduce dependence on coal which is the main source of the choking smog strangling China’s major cities, as well as growing concern over climate change.”

China’s Goldwind dominates the country’s local market and has already built more than one-fourth of country’s total turbines. In 2016, analysts expect a high level growth in the country’s wind market. China is set to lead the wind power market in 2016. The country is shifting fast towards the use of cleaner form of energy as a result of environmental concerns and thus, the wind power industry along with others receives full government support. There is a need to reduce dependence on coal and shift towards a cleaner form of source as a means of fuel. By 2030, China expects to eliminate all sorts of dirty sources of energy. At present, the country is the world’s largest carbon polluter.

Like China, the wind market in the US is also expected to grow further. Recently, the country also decided to give an important tax breaks for the promotion of wind power in the region.

The scope for wind power energy is immensely huge and there are also tremendous growth opportunities. Thus, all the leading wind turbine makers across the globe are keen to take full advantage of it. According to FTI Consulting, in 2015 wind power contributed around 44% of total electricity generation in the EU. Similarly, wind power also surpassed natural gas as the top most power generation source installed in the US in 2015.