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

China’s Wind Power Industry Shows Overall Recovery

China’s wind power market is ushering in a second prosperous period after nearly three years in the doldrums, with many publicly listed companies seeing better results.

During the first quarter of 2014, Goldwind Science & Technology Co., Ltd booked business revenue of 1.43 billion yuan (US $233 million), up 50.8 percent year on year, and a net profit of 50.8 million yuan (US $8.24 million), up 56.5 percent year on year. The company also expects to realize a net profit between 324 million yuan (US $52.6 million) and 370 million yuan (US $60.1 million) for the first half of this year, up 250 percent to 300 percent year over year, far exceeding market expectations. 

Along with the improvement in overall performance, Goldwind’s sales price for wind power equipment is also picking up. During the first quarter of this year, the company’s gross margin reached 32.2 percent, up 10 percentage points from the fourth quarter of last year and up nearly 15 percentage points from the first quarter of last year, mainly due to the recovery of the gross margin on wind power equipment.

Bidding prices of wind power equipment in China have also jumped: the average bidding price for a 1.5-MW wind turbine was only 3,600 yuan (US $585)/kW in June 2011, a historic low. However by the end of last year, the price rebounded to between 3,800 yuan (US $617) and 3,900 yuan (US $634) /kW.

Huayi Electric Apparatus Group, a Chinese wind power equipment manufacturer, witnessed business revenue of 361 million yuan (US $58.6 million) during the first quarter of this year, up 56 percent year on year, and a net profit of approximately 28.2 million (US $4.58 million) yuan attributable to shareholders of the listed company, up 1,062.4 percent year on year. Moreover, Huayi expects its net profits during the first half of this year to increase over 1,500 percent year on year.

The significant increase in the number of bids for wind power equipment has heightened the expectation for consistent improvement in the performance of wind power manufacturers. During the first half of this year, bids for the equipment in China exceeded 11.5 GW, including 7 GW during the first quarter and over 4.5 GW during the second quarter, up approximately 30 percent from the 8.8 GW during the first half of last year.

To reach the goal of 18 GW in new wind power capacity for 2014 set by China’s National Energy Administration (NEA) at the beginning of this year, the industry needs to purchase about 60 billion yuan (approx. US $10 billion) worth of equipment. The installation capacity this year is expected to exceed this figure, and may even reach 22 GW, as forecast by some insiders. 

The size of requests for bids being sent out by many power companies reflects confidence in the future of the market, said an industry analyst. Furthermore, the building of cross-regional power transmission lines can lead to far less facility abandonment (turbines that are not connected to the grid) and more grid-connected capacity. During the first half of this year, the average wind power abandonment rate was only 8.5 percent, down 5.14 percentage points year on year, according to NEA statistics.

Lead image: Wind turbine via Shutterstock

RELATED ARTICLES

Is the Spanish Government Putting the Brakes on Solar PV?

US Capitol

Republicans and Democrats Back Bill to Level the Playing Field for Renewable Energy

Vince Font, Contributing Editor U.S. Senators Chris Coons and Jerry Moran are leading a bipartisan effort to reintroduce tax code legislation aimed at leveling the playing field for renewable energy investment. The Master Limited Partnerships Parity Act w...
African vultures wind turbines

Ecological Map Could Save Vultures from Fledgling African Wind Farm Development

Becky Allen, British Ecological Society Ecologists have developed a new map that could help Lesotho's first wind farms generate low carbon energy without putting the region's vulnerable vulture population at risk. The map is part of a study published today in the...
Pope Francis

The Common Goals of the Pope and Clean Energy

Paul Stinson, EDF Pope Francis turned a keen eye toward the environment and the problem of climate change with his encyclical,“Laudato Si” (“Praised Be”). As a clean energy advocate, I’m heartened that Pope Francis recognizes the need t...
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 3
1505REW_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...

CanWEA Annual Conference and Exhibition

The annual CanWEA Conference & Exhibition has helped companies marke...

CanWEA Winter Solstice Fundraising Dinner

CanWEA Winter Solstice Fundraising Dinner December 1, 2015 Toronto, Ontario

COMPANY BLOGS

The Almost There Markets: Just Give ‘Em Some Time

Earlier this year, we reported on recent legalization of third party fin...

Meteorological Technology International Magazine - SENSORS AND SENS...

Over the past 10 years, these sensing technologies have spread tre...

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS