The wind power manufacturing industry is a mixed landscape. The cost of developing wind farms has increased, making it difficult for manufacturers to recoup their investments. Additionally, post-operation maintenance services are proving challenging to deliver effectively.
In 2014, with the implementation of grid-connected policies and subsidy programs, along with the resolution of wind curtailment issues caused by UHV (Ultra High Voltage) construction, the wind power industry saw some recovery. However, this growth was not smooth. At the National Energy Work Conference that year, it was clearly stated that wind power capacity would continue to expand. The target for 2014 was set at 18 million kilowatts, and it was estimated that by the end of the year, China's total wind power installed capacity would exceed 90 million kilowatts, generating around 175 billion kilowatt-hours annually.
Despite these positive signs, the wind power sector was still facing significant challenges. Many equipment suppliers were struggling with delayed payments, as turbine manufacturers could not settle their debts to parts suppliers due to unmet orders. This led to disruptions in late-stage service support, which became a major bottleneck for the industry.
During the Two Sessions, Zhao Ping, deputy director of the National People’s Congress and vice president of Dongfang Steam Turbine Co., Ltd., highlighted that financial difficulties had become the most pressing issue in wind power equipment manufacturing. He emphasized that without timely financial support, the industry would struggle to sustain its growth.
However, there were signs of improvement. In 2014, the wind power industry began to return to a more rational path. Dongfang Electric Co., Ltd. successfully signed contracts with a Swedish company for the supply and installation of wind power equipment, marking the first time Chinese-made wind turbines were exported to Sweden. This was seen as a promising start for Chinese wind turbine manufacturers.
From the second half of 2013, the wind power industry showed signs of stabilization after years of volatility, declining quality, and falling prices. This trend was confirmed by improved profits, increased orders, and higher industry concentration in the third-quarter reports of wind turbine manufacturers. According to Shi Pengfei, vice chairman of the China Wind Energy Association, the main reason behind this upturn was the Ministry of Finance's decision to advance additional subsidies for renewable energy, which significantly shortened the time developers had to wait for subsidies, creating a more favorable environment across the entire industry.
At the policy level, the National Energy Administration aimed to further optimize the layout of wind power development in 2014. It focused on promoting offshore wind power, accelerating clean energy alternatives in air pollution control efforts, and advancing several key projects, including the second phase of the Chengde Wind Power Base and plans for Wulanchabu and Xilin Gol Wind Power Bases. The Hami-Zhengzhou ±800 kV transmission line was also used for "wind and fire bundled" power transmission demonstrations, helping to build experience in wind power consumption and verification.
Additionally, the upcoming "Regulations on the Management of Renewable Energy Quotas" will set clear targets for the share of renewable energy in power generation, grid companies, and provinces. If implemented, this policy will push these entities to invest more in wind and solar projects. Meanwhile, the Ministry of Science and Technology is launching several research initiatives to support wind power development.
China's wind power industry is currently at a critical stage, transitioning from initial development to a more mature industrial system. While significant progress has been made in wind power technology and the formation of a complete supply chain, there are still gaps compared to foreign counterparts in areas such as unit design, key components, and offshore wind power construction.
Moreover, domestic wind turbine quality remains a concern, and independent design capabilities need further enhancement. The rising costs of wind farm development, coupled with payment difficulties among turbine manufacturers and challenges in maintaining late-stage services, have become major obstacles in the next phase of growth. Financial institutions have classified wind power as a high-risk industry, leading to higher interest rates and increased financing costs.
Zhang Chuanwei, deputy chairman of the National People’s Congress and chairman of Mingyang Wind Power Group, pointed out that as wind power development shifts to low-wind-speed regions, costs related to land acquisition, infrastructure, transmission, and labor are expected to rise. Additionally, the decline in carbon credit prices has reduced CDM revenue for developers, squeezing profit margins.
To address these challenges, Zhang suggested that grid companies should strictly enforce full-scale procurement of renewable energy and strengthen oversight of subsidy distribution. On the financial side, he recommended establishing state-backed wind power guarantee companies and improving loan guarantee models to encourage participation from leasing and insurance firms, thereby reducing investment risks.
Overall, while the wind power industry is showing signs of recovery, sustained growth will require continued policy support, technological innovation, and better financial strategies.
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