Delhi, NCR, Jan. 19, 2022 (GLOBE NEWSWIRE) -- China wind energy market is embarking upon a double-digit CAGR OF 10.2%. The wind energy market in China is thriving due to increasing investments made by Chinese provinces to achieve the ambitious goal to generate a huge amount of energy from wind….
A study, recently conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that the China wind energy market is expected to grow at a CAGR of 10.2% during the forecast period (2022-2028). China wind energy market is organically growing due to increasing investment by the Chinese provinces to reach the ambitious goal of generating a major amount of energy from the wind. Guangdong, for instance, intends to build 30 GW of offshore wind power by 2030, followed by Jiangsu (15 GW), Zhejiang (6.5 GW), and Fujian (5 GW). Other provinces have also set up their own targets and developed offshore wind development plans, which has all contributed to the growth of the China wind energy market.
Favorable Government Policies Driving the China Wind Energy Market
Advances in technology, as well as the growing ability to generate power at low wind speeds, will contribute to a significant rise in China's wind energy industry in the coming years. Furthermore, the wind energy market in China is driven by favorable policies initiated by the government owing to the increasing electricity demand. In 2018, the Chinese government put forward an action plan. [M1] A year later, the National Development and Reform Commission (NDRC) issued a new policy outlining a clear path toward "subsidy-free" onshore wind. Because of this law, projects already approved until 2018 continued to earn the Feed-in-Tariff (FiT) if they are grid-connected by 2020. In this way, favorable schemes by the Chinese government have fueled the growth of China's wind energy market.
China also has plans to expand its offshore wind capacity by 5-6 times during the 2021-2025 period from its 2020 levels. In November 2021, Reuters reported that China's State Power Investment Corp (SPIC) connected two newly built offshore wind farms off south China's Guangdong province to the state grid. In addition to being China's largest green energy operator, SPIC is also the world's leading renewable energy operator, with over 100 gigawatts (GW) of installed capacity. Thus, the growing investment from the state-owned companies and favorable government policies in wind energy generation is expected to drive the growth of the China wind energy market during the forecast period.
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Growing Concerns Regarding Carbon Footprint is Propelling the China Wind Energy Market
In today's world, reducing carbon footprints and combating climate change is one of the most important and critical issues. To tackle climate change and reduce carbon footprint from the region, the Chinese government is expanding the use of renewable energy sources for power generation by launching new favorable schemes. According to a cabinet paper issued in the state, China intends to reduce its dependency on fossil fuels to less than 20% by 2060. According to the document, the Chinese government plans to reach peak emissions by 2030 and carbon neutrality by 2060. According to China, 25% of energy will be derived from non-fossil fuel sources by 2030. Moreover, the country plans to use non-fossil fuels for 80% of its energy in 30 years. As a result, relying more on non-fossil fuels and achieving a net-zero carbon footprint are driving the growth of the wind energy market in China.
Onshore Segment Dominates the China Wind Energy Market
Based on installations, the China wind energy market is grouped into onshore and offshore. The onshore segment dominated the market in 2021 and held the larger market share owing to the large investment in the sector and the high capital investment required for offshore wind farms. Moreover, significantly high support structure costs, high Operating & Maintenance (O&M) costs, high electrical infrastructure costs, and high turbine costs for offshore wind farms have supported large investments in onshore wind farms, leading to a dominant share of the segment in China wind energy market.
>12 MW Segment to Hold the Largest Share in the Market
Based on ratings, China wind energy market is grouped into ≤ 2 MW, >2≤ 5 MW, >5≤ 8 MW, >8≤10 MW, >10≤ 12 MW, and > 12 MW segments. Among these, the >12 MW segment holds the largest share in the China wind energy market generating a significant amount of revenue. China is expected to account for about 70% of new wind power capacity expansions globally within a decade, owing to the country's strong electricity demand. Rapid expansion in power demand, fueled by China's industrial sector, and a recent power deficit in September 2021, fueled China's ambition to accelerate renewable energy development. Thus, to reach 70% of new wind projects, there is a need for higher ratings of wind energy plants of >12 MV power ratings which is driving the growth of the segment.
For more info please visit press release of China wind energy market: https://www.blueweaveconsulting.com/press-release/china-wind-energy-market-set-to-witness-a-positive-growth-growing-at-a-cagr-of-10-2-by-2028
Impact of COVID-19 on China Wind Energy Market
Due to the COVID-19 pandemic, China has experienced a decline in energy consumption, a disruption of supply chains, and a decline in economic development. Due to supply chain disruptions and lockdowns during the pandemic, projects were delayed and investments were low. During the first quarter of 2020, China's economic indicators all declined: industrial production fell by 8.4%, retail sales fell by 19%, and fixed-asset investment dropped 16.1%. As a result, China's GDP fell by 6.8% year-on-year.
The wind energy sector faced a sharp slowdown in onshore investment as the onshore wind industry's key incentives expired in 2020. As per Bloomberg New Energy Finance, China was responsible for 58GW (GigaWatts) out of the world’s total of nearly 100GW (GigaWatts) worth of wind farms built-in 2020. The incentives and subsidy for offshore wind farms ended on December 31, 2021 and therefore, the country registered a meteoritic rise in offshore wind farm investment in 2021. According to a study, China’s wind energy capacity will reach 698GW by 2030 and will hold 67% of the global share. Despite government subsidy ending, the investment in wind energy is expected to increase in the coming years and present lucrative opportunities for the growth of the wind energy market.
The Leading Players in the China Wind Energy Market are Goldwind, China Guodian Corporation, CRRC (China), CSIC (Chongqing) – HZ Wind Power (China), Envision Energy (China), SANY (China), Shanghai Electric (China), Sinovel (China), GE Renewable Energy, Siemens Energy Pvt. Ltd., China Datang, China Huandian, Mingyang, Guodian United Power Technology, Xiangtang Electrical Manufacturing Corporation (XEMC), and other prominent players.
Government initiatives to install wind energy plants throughout the region and achieve net-zero emission by 2030 have driven stiff competition in the market. Further, the Chinese government is collaborating with foreign companies to commission and install new projects, which has led to more competition in the market.
Recent Developments
In December 2021, Orient Cable (NBO) finished a dynamic subsea cable project for China Three Gorges at the 400MW Yangxi Shapa 3 floating offshore wind farm off the coast of China. The project is the world's first pilot anti-typhoon floating wind turbine in China, and it will create 5500 kilowatt-hours of clean energy for 30,000 households.
In December 2021, China’s largest wind farm, Jiangsu Qidong offshore wind farm was connected to the grid at full capacity. The wind farm as capacity of 802 megawatt (MW) and consists of three projects – H1, H2, and H3. Each project has an offshore booster station. The wind farm has been built with an investment of USD 2.26 billion and is owned by Jiangsu Huawei Wind Power and Qidong Hua Er Rui Wind Power Technology.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of China wind energy market size & forecast. The report promises to provide recent technology trends of China wind energy market and industry insights which help decision-makers to make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges and competitive dynamics of the market.
Scope of the Report:
| Attribute | Details |
| Years Considered | Historical data – 2018-2021 |
| Base Year – 2021 | |
| Forecast – 2022 – 2028 | |
| Facts Covered | Revenue in USD Million |
| Product/Service Segmentation | By Rating, Component, Installation, Application |
| Key Players | Key Players for the market are Goldwind, China Guodian Corporation, CRRC (China). CSIC (Chongqing) – HZ Wind Power (China), Envision Energy (China), SANY (China), Shanghai Electric (China), Sinovel (China), GE Renewable Energy, Siemens Energy Pvt. Ltd., and other prominent players |
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