The wind power manufacturing industry is facing mixed challenges. The costs of developing wind farms are rising, making it difficult for manufacturers to recoup their investments. Additionally, post-operation maintenance services remain a major hurdle. In 2014, with the implementation of grid-connected and subsidy policies, as well as the resolution of wind curtailment issues caused by UHV (Ultra High Voltage) construction, the wind power sector experienced a partial recovery. However, this progress was not without obstacles.
At the 2014 National Energy Work Conference, it was clearly stated that wind power capacity would continue to grow. The target for new wind power installations in 2014 was set at 18 million kilowatts, with an estimated total installed capacity exceeding 90 million kilowatts by year-end, generating around 175 billion kilowatt-hours annually. Despite these targets, the industry still faced significant difficulties.
Many wind turbine equipment suppliers were struggling with delayed payments, which disrupted the supply chain and affected late-stage service delivery. Zhao Ping, deputy director of the National People's Congress and a senior executive at Dongfang Steam Turbine Co., Ltd., highlighted that financial bottlenecks had become a major obstacle in wind power equipment manufacturing.
Despite these challenges, the wind power industry showed signs of returning to a more rational trajectory. For instance, Dongfang Electric Co., Ltd. successfully signed a contract with a Swedish company for the supply and installation of wind power equipment, marking the first export of Chinese-made wind turbines to Sweden. This was seen as a promising start for Chinese wind turbine manufacturers in 2014.
From the second half of 2013, the industry began showing signs of improvement, with increased profits, orders, and industry consolidation. According to Shi Pengfei, vice chairman of the China Wind Energy Association, one key reason for this recovery was the Ministry of Finance’s early release of additional renewable energy subsidies, which shortened the time developers had to wait for financial support and improved the overall industry environment.
In 2014, the industry appeared to be regaining momentum, with frequent reports suggesting a "second spring" was on the horizon. At the policy level, the National Energy Administration aimed to optimize wind power development layouts, promote offshore wind projects, and accelerate clean energy integration with air pollution control efforts. Several demonstration projects, including the "wind and fire bundled" transmission study using the Hami-Zhengzhou ±800 kV line, were planned to improve wind power consumption and reduce curtailment.
The upcoming "Regulations on the Management of Renewable Energy Quotas" was also expected to encourage greater investment in wind and solar power. These regulations would set clear renewable energy targets for power companies, grid operators, and provinces, pushing them to invest more in green energy. Meanwhile, the Ministry of Science and Technology launched several research initiatives to support the long-term development of wind power technology.
China’s wind power industry is currently at a critical stage in building a complete industrial system, from basic research to equipment development and testing. While domestic manufacturers have made significant technological advancements and formed a comprehensive supply chain, gaps remain in areas such as unit design, core components, and offshore wind development.
Additionally, issues like equipment quality, limited independent design capabilities, high development costs, and payment delays among manufacturers continue to pose challenges. Increased investment and risks in wind power development have become a major constraint for the industry’s next phase of growth.
Zhang Chuanwei, deputy chairman of the National People's Congress and chairman of Mingyang Wind Power Group, pointed out that as wind power projects shift to low-wind areas, development costs—including land acquisition, infrastructure, transportation, and labor—continue to rise. Furthermore, the decline in carbon credit prices has reduced CDM (Clean Development Mechanism) revenue for developers, squeezing profit margins. As a result, financial institutions now classify wind power as a high-risk sector, increasing financing costs.
To address these challenges, Zhang suggested that grid companies should strictly enforce full purchase of renewable energy, while the government should encourage the establishment of state-backed wind power guarantee companies. He also called for better loan guarantee models and greater participation from financial institutions like leasing and insurance to help manage the risks associated with wind power projects.
(Reporter: Yu Haijiang)
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