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China's Wind Energy Market

Market Analysis

 

Wind energy will take the second highest priority in China.  Wind installation costs are $1-$1,500 USD per kilowatt versus $5-$6,000 USD for solar energy.  Hydro-electric power is currently the cheapest solution.

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Today, 0.11% of China’s energy resources come from wind.

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In the past 5 years, 60 in-grid wind farms have been built to date with 2000 wind turbine generators producing 1,300 MW.

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Wind farms have been built in 16 Chinese provinces, mostly in the Northwest, Northeast and along the Eastern coastlines.  The specific locations include: the Gobi dessert, Inner Mongolian, Gansu, Xinjiang Provinces, along the East Coast from shangdon to Liaoning, and in the South in Fujian Province.

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. The China Renewable Industry Association is recommending that 14% of China's energy, or approximately 30 gigawatts, come from wind by 2020.  The goal is to reach 5 gigawatts by 2010.  This means that 800 megawatts of new wind farms will be built annually from 2007 to 2010.

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 Most turbine generators in China range from 500 kilowatts to 1 megawatts

Opportunities for U.S. Companies

Chinese wind turbine manufacturers lack the technology to build generators above 1 megawatts.  Local companies dominate the 200-700 megawatt market, occupying 80% of the market. 

The trend in China is to build larger wind farms with capacities of 100 to 150 megawatts and each turbine producing 800 megawatts to 1.2 gigawatts.  Almost 90% of all the large capacity generators are exported from Europe.  U.S. companies simply have not taken advantage of the Chinese wind market- lacking market information, contact points, and concentrating too much on the domestic market.

U.S. companies with larger capacity wind turbines or with lower cost per kilowatt hour technologies can participate in the current 8-15 wind tendering projects in 2007 and 2008.

Other opportunities exist in off-grid generators.  Many small towns and farms in China's countryside and poorer regions still do not have in-grid electricity.  The local governments are purchasing and subsidizing small, off-grid wind systems ranging from $3,000 to $5,000 systems in the 400 watt to 3,000 watt ranges. 

The China Renewable Energy Industries Association estimates that $600M USD will be spent on off-grid wind systems in the next 2 years. 

U.S. companies offering better technologies or cost-efficient solutions can either create technology licensing relationships with local manufacturers, designers, and servicing companies, or directly participate in the tendering process with local distributors or partners.


China Misconceptions