The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Prospects for China Wind Turbine Manufacturers Remain Gloomy

Growth among China's wind turbine manufacturers has slowed since the beginning of 2011 due to several factors, including more stringent regulatory approval for wind power programs and reduced quality control. Most manufacturers recorded significant declines in their financial results for the first half.

The Chinese government released a series of new regulations and rules during the first six months of this year in a bid to enhance its oversight over the entire wind power sector. In addition, the government issued a series of technical standards in response to a number of incidents of wind turbines being disconnected from the country’s power grid.

The price war among China’s manufacturers of complete wind turbines remains fierce. Prices of complete wind turbines have steadily declined in recent years under increasing pressure to reduce their overall manufacturing costs, and as a result, wind turbine parts makers have found themselves the most hurt among those affected by the cut-throat price war. 

The year 2008 was the most profitable for Chinese wind turbine parts makers, as fast growth in installed capacity across the country led to short supplies of wind turbine parts. However, a growing number of new players, sensing the fast profits, entered the sector, resulting in excessive supply. Prices of wind turbine components have been decreasing ever since. As an example, the price of a wind turbine blade declined to RMB 3,500/kW (approx. $550/kW) in May 2011 from RMB 6,500/kW (approx. $1,000/kW) in May 2008, a decline of 46.7 percent. For survival, some wind turbine blade providers have lowered manufacturing costs at the expense of product quality by using low quality raw materials during their manufacturing process. If the price war continues, China’s wind turbine sector could well collapse, according to an industry insider.

Shi Pengfei, Vice President of the Wind Energy Professional Committee of the Chinese Renewable Energy Society, said recently that following the significant growth of installed capacity between 2006 and 2010, China’s wind power sector has entered an accident-prone period due to insufficient quality control and poor management in construction of wind farms. According to preliminary statistics, 16 wind turbine generator sets caught on fire or collapsed between the beginning of 2009 and April 2011. The development of supporting facilities including equipment for access to the power grid, technology and industry standards has lagged far behind the construction of the wind farms themselves.

Last but not the least, according to U.S. Trade Representative Ron Kirk, the Chinese government has decided to stop subsidizing wind power companies that use domestically made components rather than imports.

Untitled Document

RELATED ARTICLES

U.S. Offshore Wind Power Industry Starting to Emerge

Ehren Goossens, Bloomberg A few miles off the coast of Block Island, a new U.S. industry is emerging from the Atlantic Ocean. That’s where Deepwater Wind LLC is installing a massive steel frame, more than 1,500 tons, that sits on the seabed and juts...

100-MW Kenyan Wind Farm Will Help Power Africa

Renewable Energy World Editors As part of President Obama’s Power Africa initiative, the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, announced that it committed $233 million in debt financing to ...

Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integr...

With 1.6 GW of Wind Capacity Installed in Q2, American Wind Power Continues To Ramp Up in 2015

David Ward, American Wind Energy Association With 1,661 megawatts (MW) of newly installed wind turbines coming online during the second quarter of 2015 and more than 13,600 MW under construction, American wind power continues to increase its contribution to the U.S. e...
Nanjing Shanglong Communications Liu Yuanyuan is Director of Operations and Co-Founder of Nanjing Shanglong Communications. Liu Yuanyuan previously held the position of office manager at the London Financial Times' China translation and editoria...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

StartUp Green

AREI, American Renewable Energy Institute, in partnership with ...

AWEA Offshore WINDPOWER 2015 Conference & Exhibition

Building Up and Trending Forward With the construction of the Block Isla...

COMPANY BLOGS

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

Koch Professor drops his Koch title, still makes same errors plus s...

The Koch Professor’s title isn’t the only thing that’s...

Fact Check: AWEA represents American wind power

The American Wind Energy Association (AWEA) is proud of its members for ...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS