World Wind Energy Association is expecting a strong growth in wind energy around the world in coming years. By 2013, it is anticipated that the installed capacity of world wind power will accumulate to the amount of 332,100 MW, among which 56,300MW increased amount expected in 2013 will double compared with that in 2008. Europe, Asia and North America are the regions with faster development pace.
Enjoying abundant wind power resources, the exploration of this clean energy in China has been in full gear these years, still much room for increase for the future. It is expected a total of 10,556 MW and 12,667 MW installed capacity needed by the market demand in the year 2010, and 2011, with 30% and 20% increase, respectively, compared with the previous year.
Electricity mix is to be changed The electricity mix is set to be optimized in China thanks to its preferential policy for the development of clean energy. With the purpose of addressing world climate change and safeguarding the national energy security, the status quo that coal-fired power accounts for a majority of the electricity mix must be changed. Since 2007, the state has been intent to control the construction of thermal plants, while to encourage the development of clean energy, such as wind power, hydro power and other renewable energy.
By the end of 2009, the thermal power takes 75% of the total installed capacity, and accounts for 81% of the total electricity generation in China. In the future, it is expected that tougher policy on electricity mix adjustment will be launched. Supported by the fostering policy on wind power, the synchronization of wind power electricity will be addressed in the near future, a main bottleneck plaguing the industry. Meanwhile, the nuclear power has entered an era of “big development”, the share of nuclear generated power is increasing.
Solar power, stimulated by the preferential policy, has been on the fast track. While the thermal power industry sees the phrase-out of small plants, which will be substituted by large capacity units. Integrated Gasification Combined Cycle (IGCC) will be the trend of thermal power development in China. In the phrase of 2009-2015, the share of all the clean energy will be increased as the follow in China: Wind power will be increased from 17.06 million KW to 101.98 million KW; Nuclear power will be increased from 9.08 million KW to 38.08 million KW Solar power will be increased from 0.245 million KW to 10.84 million KW The annual investment for such increase will be increased from RMB 371 bn ($54.5bn)to RMB 497 bn ($73 bn) in 2015. Recently, in terms of turbine manufacturing, the supply has already exceeded the demand in the market, forcing the profit of the industry to be eroded to the average. According to statistics of the industry, domestic capacity of wind turbines is believed to be superfluous: the demand of installed capacity in 2009 and 2010 stands at 8.12 million KW and 10.56 million KW respectively, while the manufacturing capacity has reached 12 million KW and 17.25 million KW respectively.
Consolidation of the industry is inevitable. It is noticeable that supported by the state policy, domestic wind power has been consolidated to quiet a few leading enterprises, such as Dongfang Electric Corporation and Goldwind Science&Technology. Lately, CHINA LONGYUAN listed in Hong Kong is another example proving the capital market is upbeat on the wind power industry. Although the competition mounting, companies in different pieces of supply chain are still benefiting from the fast growth of world wind power industry in 2010.
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