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

China’s Wind Power Sector Foresees a Recovery in 2014

Although some reports indicated that the wind power sector in China showed minimal growth in 2013, the actual situation was not so grim. Recently released statistics pointed to a recovery in the industry, with newly installed capacity rising 24 percent year on year, the bid invitation price rising nearly 15 percent, and the average year-on-year annual wind farm utilization time increasing by more than 100 hours. Newly installed capacity is expected to maintain a growth rate of 20 percent over the next few years, as the grid connection becomes easier and the Chinese government establishes more favorable policies.

Data for 2013 show the wind power industry in China has bottomed out. Last year, the industry recorded newly installed capacity of 16.1 GW, 24 percent more than the 13.0 GW installed in 2012 and bringing the total to 90 GW. The recovery was also reflected in the bid-invitation price for wind turbine generators, which improved to 4,000 yuan ($US 670)/KW in 2013 from a low of 3,600 yuan ($US 600)/KW in June 2011.

According to Shi Pengfei, Honorary Chairman of the Chinese Wind Energy Association, there were three main reasons for the recovery. Firstly, the Ministry of Finance has begun to pay the additional subsidies for renewable energy up front, significantly reducing the time necessary for developers to obtain the subsidies so they can be turned around and deployed. Secondly, the decline in the coal price vastly improved the financial positions of China’s five largest power generation groups, allowing them to allocate more investment in the renewable energy sector. Lastly, developers have realized that they can no longer so viciously cut the bid-invitation price for wind turbine generators, as this would lead to poor quality equipment and in turn have a negative effect on their productivity. In the first half of 2013, the capacity in tender invitations totaled 8.8 GW, an increase of 100 percent year on year. 

The limitation on wind power supply saw relief last year, with the average wind farm utilization exceeded 2,000 hours, compared with 1,900 hours in 2012, according to Shi Lishan, Deputy Head of the New and Renewable Energy Division at the National Energy Administration.

In 2014, several favorable policies will be rolled out. At the beginning of the new year, the National Energy Administration issued the Notice on Building Offshore Wind Power Projects, according to which the administration will choose several of the larger projects in several provinces this year as the ones to develop, said Shi. In addition, the watchdog organization will issue the long-awaited Quota Management Methods on Renewable-Energy Power, a document delineating a clear schema for the quota distribution of renewable energy for power generating companies, grid companies and provinces. This will allow all parties to deploy more wind power and PV power projects as the seek to make full use of their quotas.

Furthermore, the Ministry of Science and Technology will kick off a batch of research projects to support of the development of the wind power sector, according to Qin Haiyan, secretary general of the Chinese Wind Energy Association.

China aims to install 18 GW of wind power projects in 2014. Findings at the recently concluded National Energy Working Conference 2014 revealed that the country is on track to approve 14 GW of wind power projects (60 percent of which will be distributed projects). In addition, the country aims to bring the price for wind and solar power in alignment with that for thermal power by 2020.

Lead image: Wind turbines via Shutterstock

Untitled Document

RELATED ARTICLES

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

With Vast Amounts of Geothermal, Wind and Hydropower, Why No Solar In New Zealand?

James Ellsmoor, Contributor New Zealand has built an international brand on environmentalism and the great outdoors. So it is unsurprising that t...

GE low wind turbines make debut in France

Kelvin Ross

A new wind farm in France will be the first in the country to deploy GE’s 2.75-120 wind turbines.

Unlikely Allies in North Carolina Clean-Energy Fight

Mark Drajem, Bloomberg With North Carolina’s renewable energy mandate under assault from Republican legislators, green groups seeking to sav...

PRESS RELEASES

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

30 days to GRC Annual Meeting & GEA Geothermal Energy Expo

The Geothermal Resources Council (GRC) has announced that it is only 30 days to go to t...

FEATURED BLOGS

Appalachian's Energy Center assists counties with landfill gas to energy projects

Activity supported with Z. Smith Reynolds Foundation funding BOONE—The Appalachian Energy Center at Appalachia...

Discounted Room Rates for Geothermal Event end Friday

Discounted room rates for GRC Annual Meeting & GEA Geothermal Energy Expo end Friday Room rates for this prestigi...

3 Reasons To Follow-Up

It’s very important to begin nurturing your relationship with a customer immediately after the project you sold...

Who are the Solar Early Adopters? - the “Tipping Point” is Looming

We all know why people go solar: investment purposes, immediate savings, environmental concerns, and grid independenc...

FINANCIAL NEWS

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! @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...

Intersolar India 2015

Exhibition and Conference: November 18-20, 2015 Intersolar India 2015 I...

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

COMPANY BLOGS

Less Is More

When you’re giving a presentation, one of the easiest things to do...

Captivology

One of the biggest challenges we face as efficiency sales professionals ...

How To Optimize Your Meeting Schedule

Do you spend more time in meetings than you do actually working? While m...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS