Wednesday, November 5, 2008

Sunshine on China Wind Power Industry

China Wind Power Industry is still promising in the worldwide financial crisis.

Wind energy industry is rapidly growing in China, and 3.4GW wind power capacity was installed in 2007, and the accumulated installed wind power capacity reached 6GW by the end of 2007, and China became the No.5 biggest wind power producer in 2007. And China accounted for 15% of investment in the global wind power industry in 2007, and the attracted investment in China was 34 billion CNY in total.

According to China Wind Power Development Report 2008, the total installed wind power capacity in China will reach 10GW by the end of 2008, and 25GW by the end of 2010. And the most conservative estimated capacity is 80GW by the end of 2020, the business opportunity in China wind power industry is huge.

It is possible that China government will release more incentive policies to further push the development of wind power industry. And in the last two years, many new big players joined the wind power industry, and these manufacturers will begin the mass production in next several years. Then China's wind power industry will expand at incredible speed.

At present China wind power industry development also faces some problems: weak power grid, low wind electricity price, wind power equipment quality problem and lack of innovative technologies and talented engineers.

The weak power grid is the biggest bottleneck. In general the wind power rich regions are far from the power consumption regions, and the power grid in the wind power rich regions is not able to transfer the generated electricity in large scale to the quite far power consumption regions.

The low wind electricity price is harmful to the wind power industry development. At present the wind electricity price in China is 0.01 to 0.02 Euro lower than the price in other countries. And the wind electricity prices for different projects are different, it is not fair for the companies to compete.

The low wind electricity price forces the wind power investors to beat down the wind power equipment prices, it is hard to guarantee the wind power equipment quality and the wind power equipment manufacturers do not have enough fund for product and technology development.

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