Report Overview

China Wind Energy System Market is expected to grow due to increasing investments by the major players and increasing electricity demand in the region.

China Wind Energy Market- Industry Trends & Forecast Report 2028

China wind energy market is thriving and expected to grow at a CAGR of 10.2% during the forecast period (2022-2028). Multinational corporations are making increasing investments in the wind energy sector in China with the help of the Chinese government. For instance, GE Renewable Energy, for example, will open a new offshore wind facility at Jieyang's Offshore Wind Cluster in the Chinese province of Guangdong, as well as an Operations and Development Center in Guangzhou. The new GE offshore wind facility in Jieyang will meet China's expanding demand for offshore wind energy while also serving local and regional projects. Thus, the rapid increase in investment by key wind energy players in China is driving the growth of the China wind energy market.

China Wind Energy Market Overview

The use of wind turbines to generate electricity is known as wind power or wind energy. Wind turbines harness the wind's kinetic energy and transform it into mechanical power, which can be employed for specialized tasks (grain grinding or water pumping) or converted into energy by a generator. Wind energy is a popular, sustainable, renewable energy source with far fewer environmental impacts than burning fossil fuels. Wind turbines can generate energy for onsite use as well as for export. The size of the turbine will be determined by the energy requirements. A report published by Bloomberg New Energy Finance found that China created more than half of the new wind power capacity around the world in 2020. The onshore and offshore wind farms of the country grew by almost 58GW and outgrew the combined growth in wind energy in 2019.

China Wind Energy Market Trend

Growth Drivers

Increasing Investment in Wind Energy

With the most wind farms installed in the world, and continuous rapid expansion of new ones, China has long been a world leader in wind energy generation. With its immense landmass and extensive coastline, China has tremendous wind power resources: it is estimated that the country has 2,380 gigatonnes (GW) of usable capacity on land and 200GW on the sea. China has a large mass of land and extensive coastline, so multinational corporations are investing heavily to set up new projects there. In December 2021, EDF Renouvelables, the renewables division of French utility giant EDF, announced a joint venture to complete the 200-MW Dongtai V offshore wind farm off the coast of Jiangsu province. The project was created in collaboration with EDF Group and China Energy Investment Corp. (CEI). This is the second offshore wind park in which the two companies have collaborated, following the 300-MW Dongtai IV offshore wind park.

Increasing Electricity Demand

Due to the high population, high electricity demand in China is expected to promote growth in wind energy. In 2017, total electricity consumption in China was 6.3 trillion kWh, 6.6% higher than in 2016. China’s electricity demand in 2030, and 2050 is predicted to rise to 10.3, and 13.6 trillion kWh, respectively. In total, the share of electricity in final energy demand in 2030, and 2050 will be 30.4%, and 40.4%, respectively. In the industrial sector, the percentage of electricity in total energy demand was estimated to grow from 22.6% in 2015 to 27.6% in 2020, 33.1% in 2030, and 39.8% in 2050.

Restraints

High Initial Cost of Investment

The cost of production and implementation is regarded as the most critical factor in determining the project price. The cost of production and performance may include raw materials, labor, transportation, and the manufacturing process. Due to the large investment in wind turbines, the investment takes a long time to recover. A commercial wind turbine costs between USD 2.6 and USD 4 million. On average, wind power development costs $1 million per megawatt (MW) installed. To benefit from economies of scale, wind power facilities should be bigger than 20 MW. Hence, the initial investment for such huge wind farms is very high, which hinders the growth of the Chinese wind energy market.

Impact of COVID-19

In China, the COVID-19 pandemic has caused a decline in overall energy consumption, disruptions in supply chains, and a decline in economic development. Due to the disruptions in the supply chain and lockdowns, there were delays in projects and a lack of investments during the pandemic. China's GDP, national energy consumption, and national power demand declined year on year (YOY) by 6.8%, 2.8%, and 6.5% respectively, in the first quarter (Q1) of 2020, according to Chinese government figures. However, China controlled the pandemic situation for 2-3 months, and rolling out vaccines has helped the projects re-start, allowing the market to grow significantly.

China Wind Energy Market: By Installation

Based on installations, the China wind energy market is grouped into off-shore and on-shore. In 2021, off-shore installation accounted for the largest share in the China wind energy market and is expected to grow at a healthy CAGR during the forecast period. A large number of coastal locations in China makes offshore wind energy one of the fastest-growing forms of wind energy in the country. With a hub height of 90 meters, China has more than 18,000 kilometers of coastline and more than 1,000 GW of off-shore wind potential.

China Wind Energy Market: By Application

Based on applications, the China wind energy market is grouped into utility, industrial, commercial and residential. In 2021, the residential segment held the largest share in the China Wind Energy market and is likely to dominate the market even during the forecast period. Government efforts to electrify transmission lines and introduce smart grid solutions in the region combined with rising electricity demand from the residential sector have contributed to the segmental expansion. In the Chinese residential sector, the share of electricity in total energy demand was estimated to increase from 25.6% in 2015 to 28.4% in 2020, 34.0% in 2030, and 47.3% in 2050.

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. The increasing government initiatives to install wind energy plants across the region and achieve net-zero emission by 2030 have driven the competition within the market. Furthermore, the Chinese provincial government is working with foreign companies to commission and install new projects, increasing competition in the market.

Recent Development

• In September 2021, Goldwind announced the completion of the installation and grid connection of its GW 5S Smart Wind Turbine test unit, which marks a significant step forward in Goldwind's evolution of high-performance and large-megawatt (MW) permanent magnet direct-drive (PMDD) onshore wind turbines.

• In October 2021, the country's largest green power operator, China's State Power Investment Corp (SPIC), connected two freshly built offshore wind farms off the coast of Guangdong province in south China on Tuesday, according to the company's official Wechat account.

Scope of the Report:

By Rating

• ≤ 2 MW

• >2≤ 5 MW

• >5≤ 8 MW

• >8≤10 MW

• >10≤ 12 MW

• > 12 MW

By Component

• Turbine

• Support Structure

• Electrical Infrastructure

• Others

By Application

• Utility

• Industrial

• Commercial

• Residential

By Installation

• Off-Shore

• On-Shore

• Residential