China’s Wind Power Electronics Market Gusting to Favorable Conditions
Revenue from wind will reach $3.9 billion by 2014.
Contributing almost one-third of the newly installed capacity to China’s energy market in 2009, wind power installation in China increased to 22.7 Million Kilowatts (MKW) in 2009, up from 12.1MKW in 2008, according to iSuppli Corp.
In a market amounting to only 6.1MKW in 2007, the expansion in 2009 represents substantial growth. And with the wind electronics market doubling every year for the last five years, China surpassed Spain to become the third largest provider of wind power in 2009.
By the end of 2009, 423 wind farms throughout the country generated electrical energy yielding a total of 51.6 billion kilowatt-hours, and new business worth more than $900 million is expected to be created annually from wind power for the next three years.
Accordingly, iSuppli forecasts that by 2014, $3.9 billion will be generated by wind power in China, managing a Compound Annual Growth Rate (CAGR) of 44.9 percent, up from just $360.9 million in 2009. In 2010, wind power revenue will nearly double to $606.9 million.
More Regulation Coming
While China’s Energy Bureau had planned to reach 20MKW in wind energy capacity by 2010, the target was met by 2009. Consequently, more aggressive regulation will be issued to stimulate the booming market. Meanwhile, the government is poised to act on a number of initiatives, including implementing subsidies, establishing a benchmark price for wind power tariff, and softening the relationship between wind power suppliers and power grid firms. Understandably, the government realizes that the market will not expand unless aggressive regulation and coordination by regulatory agencies are in place.
Because of the significant advantage in grid loading, offshore wind power mills will be more promising than their inland counterparts. The best position for offshore wind power locations are in the intertidal zones north of the mighty Yangtze, one of the world’s longest rivers cutting across the heart of China. The number of offshore wind power facilities will reach 10 percent of the total market during the next 10 years, up from the current 2 percent. „
Contributing almost one-third of the newly installed capacity to China’s energy market in 2009, wind power installation in China increased to 22.7 Million Kilowatts (MKW) in 2009, up from 12.1MKW in 2008, according to iSuppli Corp.
In a market amounting to only 6.1MKW in 2007, the expansion in 2009 represents substantial growth. And with the wind electronics market doubling every year for the last five years, China surpassed Spain to become the third largest provider of wind power in 2009.
By the end of 2009, 423 wind farms throughout the country generated electrical energy yielding a total of 51.6 billion kilowatt-hours, and new business worth more than $900 million is expected to be created annually from wind power for the next three years.
Accordingly, iSuppli forecasts that by 2014, $3.9 billion will be generated by wind power in China, managing a Compound Annual Growth Rate (CAGR) of 44.9 percent, up from just $360.9 million in 2009. In 2010, wind power revenue will nearly double to $606.9 million.
More Regulation Coming
While China’s Energy Bureau had planned to reach 20MKW in wind energy capacity by 2010, the target was met by 2009. Consequently, more aggressive regulation will be issued to stimulate the booming market. Meanwhile, the government is poised to act on a number of initiatives, including implementing subsidies, establishing a benchmark price for wind power tariff, and softening the relationship between wind power suppliers and power grid firms. Understandably, the government realizes that the market will not expand unless aggressive regulation and coordination by regulatory agencies are in place.
Because of the significant advantage in grid loading, offshore wind power mills will be more promising than their inland counterparts. The best position for offshore wind power locations are in the intertidal zones north of the mighty Yangtze, one of the world’s longest rivers cutting across the heart of China. The number of offshore wind power facilities will reach 10 percent of the total market during the next 10 years, up from the current 2 percent. „
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