China Wind Energy Market Set to Witness a Positive Growth—Growing at a CAGR of 10.2% by 2028
Published | 01 January 2022
China Wind Energy system market is anticipated to grow due to the increasing number of investments by the key player and increasing electricity demand in the region…
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 Market Forward
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. 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 will continue 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.
Growing Concerns Regarding Carbon Footprint is Propelling the China Wind Energy Market
One of the critical and essential topics for countries across the globe is regarding reducing carbon footprints and climate change. To tackle climate change and reduce the 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. According to Chinese officials, China 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 has driven the growth of wind energy in China.
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>12 MW Segment to Hold the Largest Share in the Market
Based on ratings, China wind energy market is segmented into ≤ 2 MW, >2≤ 5 MW, >5≤ 8 MW, >8≤10 MW, >10≤ 12 MW, > 12 MW. 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 project there is a need for higher ratings of wind energy plants of >12 MV power ratings which has driven the growth of the market.
Impact of COVID-19 on the China Wind Energy Market
As a result of the COVID-19 pandemic, China has seen a decline in energy consumption, a disruption in supply chains, and a decline in economic development. A disruption in the supply chain and lockdowns during the pandemic resulted in delays in projects and low investments. China's economic indicators were all negative in the first quarter of 2020: industrial production fell 8.4%, retail sales declined 19%, and fixed-asset investment dropped 16.1%. As a result, China's GDP fell by 6.8% year on year. The wind energy market in China, however, grew drastically in 2021 due to the restart of projects and increased trade between the countries.
China Wind Energy Market - Competitive Landscape
Some of the key 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., and other prominent players. Government initiatives to install wind energy plants throughout the region and achieve net-zero emission by 2030 have driven the 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.
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.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the China wind energy market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the China wind energy market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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