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Five bottlenecks or will restrict the speed of wind power industry
In recent years, significant progress has been made in areas such as equipment manufacturing and personnel training. However, these efforts have not kept up with the fast-paced demands of the wind power industry. On the afternoon of August 7, just before the opening of the 29th Olympic Games, the newly established National Energy Resources Bureau held a meeting, during which Zhu Junsheng, director of the Renewable Energy Professional Committee of the China Resources Comprehensive Utilization Association, was invited to participate.
During an interview with this reporter, the expert who helped draft the “Renewable Energy Law†shared insights on the development of renewable energy technologies and agricultural planning. He emphasized that the wind power industry, including its medium- and long-term talent strategy, is now becoming a reality. The main topic of discussion at the meeting was: "This means more policy support for the wind power industry, and the overall situation looks very promising."
As the world’s largest wind power market, this veteran in the field expressed optimism using three key phrases: "the situation is becoming clearer, policy support is improving, and investment in wind power is becoming more certain."
China is rich in wind resources, providing a solid foundation for the growth of the wind power industry. According to statistics, China's onshore and offshore wind resources can be harnessed to reach 1 billion kilowatts, mainly located along the southeast coast and nearby islands, the Hexi Corridor in Inner Mongolia, Xinjiang, Gansu, and parts of North China and the Tibetan Plateau.
Zhu Junsheng noted that the implementation of the “Renewable Energy Law†has provided legal protection for these abundant renewable resources. In recent years, wind power capacity has grown rapidly, increasing by over 100% for two consecutive years. By 2005, the national wind power installed capacity reached 1.266 million kW, rising to 2.599 million kW in 2006, a 105% increase. In 2007, new wind turbine installations reached 3.3 million kW, marking a 127% rise. Three years ahead of schedule, the target of 5 million kW under the "Eleventh Five-Year" plan was achieved.
It is reported that over 100 wind farms have been built, with total installed capacity exceeding 6 million kW, expected to reach around 10 million kW by year-end. Globally, China’s wind power installed capacity now ranks fifth. Additionally, China has developed the world's largest small wind turbine industry and market, supporting rural electrification.
Zhu Junsheng stated that the rapid development of wind power equipment manufacturing has ensured the construction of wind farms. Domestic power groups, including Power Supply, Dongdian, Harbin, and military, aerospace, aviation, marine equipment, weapons, railways, and power transmission, are all involved. International manufacturers like Suzlon, Vestas, Gamesa, GE, and Nordex have also established wholly-owned plants in China, such as Aerospace and Ruineng North.
According to incomplete data, there are over 40 wind turbine manufacturers in China, with more than 30 being domestic. In 2007, domestic equipment accounted for 55.91% of installed capacity, surpassing foreign imports for the first time.
The "2007 China Wind Power Development Report," compiled by experts from the Renewable Energy Professional Committee of the China Resources Comprehensive Utilization Association, predicts that China will become the world's largest wind power market. Based on recent trends, achieving 30 million kW of installed capacity by 2020 seems feasible. Over the next 10–15 years, wind power is expected to compete with traditional energy sources, becoming the third-largest power source after thermal and hydroelectric power. By 2020, it aims for at least 30 million kW, with plans to reach 100 million kW, accounting for 8%–10% of total generation capacity. By 2040 or 2050, the goal is to reach 500 million kW or 800 million kW, contributing over 20% of total power generation.
These attractive prospects have drawn numerous investors into the sector. Zhu Junsheng said that with technological advancements and growing environmental pressures, wind power is increasingly seen as a clean energy source, attracting both major power companies and foreign and private enterprises. For example, Longyuan Wind Power, under the State Power Group, has installed over 1.6 million kW of wind power. Domestic private companies like Sinovel and GCL have also invested heavily, while international financial groups are entering the market. In the future, more capital is expected to flow into wind power development.
Zhao Hao, general manager of Beijing China Carbon Balance Co., Ltd., believes that the five major power groups are showing strong interest in wind power. He analyzed, "This is related to their business environment. Currently, it’s possible that the strong will absorb the weak, so they are investing heavily in wind power to expand their scale and prevent others from entering."
He added, "Many wind power projects are applying for carbon emissions trading, hoping to bridge the investment gap through the CDM (Clean Development Mechanism). However, the current enthusiasm for CDM in wind power projects poses risks, as blind expansion may lead to disorderly competition and resource waste."
Yin Zhao, head of the energy group at UnionPay Industry Research Department, pointed out that land availability for wind power projects is a critical issue, especially for private enterprises. In regions with abundant wind resources, many private companies have invested in securing large wind sites. However, due to high costs, many cannot proceed with construction, leaving large areas idle.
Wind power is sometimes called "garbage electricity" because of its instability caused by natural conditions. If too much wind power is generated, it can strain the grid. Zhao Hao noted that currently, wind power accounts for less than 1% of China’s total electricity. While China has vast wind resources and great potential for wind power development, challenges remain. Due to lagging technology in wind power equipment and existing issues in wind farms, large-scale projects of 10 million kW cannot be rushed, as they risk grid collapse. For instance, establishing a 10 million kW wind power base in Jiuquan, Gansu, would significantly increase unstable electricity in the regional grid.
Zhu Junsheng outlined five major bottlenecks hindering wind power development:
First, inadequate preparation leads to poor project benefits and increased investment risks. Some wind farm projects lack proper preliminary work, especially in clarifying resources and the environment. Using outdated data for decision-making results in gaps between expectations and outcomes, leading to low investment efficiency, uncompetitive pricing, and long-term losses.
Second, insufficient maintenance services limit equipment performance. Projects focus on scale rather than actual output, neglecting long-term benefits. After completion, management and maintenance fall behind, causing delays and shutdowns, reducing efficiency.
Third, untested products lead to waste. With over 40 manufacturers in China, many rush to mass-produce imported technologies without proper testing. This results in quality issues, repeated replacements, and prolonged downtime, wasting resources.
Fourth, repeated introductions create unnecessary competition. New entrants often rely on imported licenses, leading to similar-level competition. Without innovation, companies risk falling behind in the market.
Fifth, lagging development of key components. Despite numerous R&D and production companies, critical parts like bearings and electrical controls still require heavy imports, limiting the industry’s growth and technological upgrades.
Zhu Junsheng noted that while the current scale of wind power is still small, coordination challenges persist. Although the Renewable Energy Law defines roles for various departments, there is a lack of clear mechanisms for inter-departmental collaboration. To ensure healthy and rapid development, a comprehensive coordination mechanism must be established early on, creating a supportive institutional environment for future large-scale wind power expansion.