As the heating season approaches in North China, the memory of last winter's severe smog in Beijing lingers. During this year’s National Day holiday, a seven-day period, the air quality was among the worst in recent years, sparking public concern about energy sources. The focus has shifted toward renewable energy as a cleaner alternative to traditional thermal power generation.
At the 2013 Beijing International Wind Energy Conference and Exhibition, Wang Jun, Director of the New Energy and Renewable Energy Department at the National Energy Administration, highlighted that China's wind power technology has significantly improved over the years, with costs continuously declining. Wind power is now a key strategy for addressing climate change and transitioning to a sustainable energy future.
China currently holds the world's largest cumulative wind power capacity. In 2012 alone, the country added nearly 13 million kilowatts of wind power, bringing the total to over 75 million kilowatts. Annual wind power generation reached 100.4 billion kWh, making it the third-largest power source in the nation. By the end of this year, wind power capacity is expected to surpass 75 million kilowatts, with electricity generation reaching 140 billion kWh.
The Chinese government has long supported wind energy development. The 18th Party Congress emphasized ecological civilization and the goal of building a beautiful China. The "Twelfth Five-Year Plan for Renewable Energy Development" and the "Twelfth Five-Year Plan for Wind Power Development" set clear targets: by 2015, China aims to install 100 million kilowatts of wind power, accounting for more than 3% of national electricity production, while establishing a globally competitive wind power manufacturing industry.
China's wind power sector has experienced rapid growth. Five years ago, most turbines were imported, but by 2009, domestic brands captured 80% of the market. However, low-price competition led to quality issues. From 2011 to early 2013, the industry faced a downturn, prompting companies to shift focus from speed to quality and efficiency. Many are now exploring overseas markets and offshore wind projects for new growth opportunities.
Shanghai Electric, a newcomer to the wind power industry, entered the sector just two years ago. According to Jin Xiaolong, its general manager, the entry barrier was low, but fierce price competition created challenges. He warned that many wind turbines would face quality issues in the coming years, leading to investment losses. Despite this, lower prices also attracted more suppliers, creating a complex market environment.
The number of complete machine suppliers has dropped from over 80 to around 20 since 2011. Foreign companies initially dominated the market, but their share fell to 7% by 2012. Martin Stern, a partner at Make Consulting, noted that international firms struggle to compete due to low pricing and China's unique market conditions.
Excess capacity has led to unhealthy development, with prices too low to sustain quality. Even GE Wind Energy, a global leader, faces these challenges. Luo Hongtao, GE’s China General Manager, said that while low prices may benefit some, long-term reliability and cost per kilowatt-hour are becoming more important.
Wind turbine life spans are around 20 years, but low-cost products often fail within three to five years, leading to costly repairs. Both manufacturers and developers recognize that focusing on quality and innovation is essential for long-term success.
In 2013, the industry began to stabilize. Sany Wind Power, once struggling, achieved slight profits after adjusting its strategy. Lin Jianwei, Sany’s Marketing Director, emphasized the shift from scale to quality, ensuring stable operations and product success.
Sany continues to invest in wind power despite past setbacks. With domestic market saturation, the company is expanding internationally, particularly in the U.S., where it has already deployed wind farms. This strategic move supports Sany’s broader goals and reflects confidence in its wind power division.
China’s wind power companies have been exporting since 2007. By 2011, due to overcapacity, many firms increased overseas investments. Export volumes have grown, with the U.S. being the largest market. Shi Pengfei, Deputy Director of the Chinese Wind Energy Association, believes China’s improving quality and competitive pricing will help it gain more international market share.
The National Energy Administration is supporting wind power companies’ global expansion through coordination mechanisms. Looking ahead, more Chinese wind power projects will emerge abroad, encouraging domestic manufacturers to enhance quality and service.
Offshore wind power is another promising area. With several provincial projects approved, China aims to gradually increase offshore capacity. Huarui Wind Power, a major player, has successfully launched offshore projects, demonstrating strong performance and potential for future growth.
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