China's wind power industry seems to be on the road to "warming up"

On November 4, Jiangxi media reported that the province has launched several wind power projects, including the Taihe Diaoyutai project. It is estimated that around five wind power projects will be completed this year, with a total installed capacity of 480,000 kilowatts and an investment of approximately 4.3 billion yuan. This marks a significant step forward in Jiangxi’s renewable energy development. Earlier reports indicated that the National Energy Administration had submitted its "Opinions on Promoting Healthy Development of the Wind Power Industry" to the State Council for approval. The document is expected to be released by the end of the year, which industry experts believe could provide much-needed support to the sector, potentially revitalizing the entire wind power industry. From a market perspective, demand for wind power is rising, and local governments are showing increased interest, according to Lin Boqiang, director of the China Energy Economic Research Center at Xiamen University. However, he noted that the term “warming up” is now being questioned due to ongoing issues like overcapacity in wind power equipment, which may hinder the industry’s recovery. Jiangxi's push for high-altitude wind power development is not surprising. The province has long been a leader in wind energy, with early deployments around Poyang Lake. Key areas such as Songmenshan and Jishan, located along the lake, have become major wind power sites. Additionally, wind power projects contribute significantly to regional GDP, making them attractive investments. According to recent data from Jiangxi media, two wind power projects—Tianhushan and Diaoyutai in Shuihe Township, Taihe County—have a combined capacity of 96,000 kilowatts, featuring 48 turbines of 2,000 kW each. These projects generate about 202 million kWh annually, with a total investment of 880 million yuan. In addition to these projects, five more wind farms are planned for the year. According to officials from the Jiangxi Provincial Energy Bureau, these projects are included in the first three batches of national wind power approvals. Most are alpine wind farms with altitudes above 1,000 meters, leading to longer construction periods and expected completion in the second half of 2014. These developments are seen as crucial steps toward achieving Jiangxi’s goal of establishing a one-million-kilowatt wind farm by the end of the 12th Five-Year Plan period. Beyond Jiangxi, Guiguan Power recently announced plans to invest 430 million yuan in the Zunyi Taiping Guizhou Wind Farm (48MW). The project will feature 24 turbines of 2MW each, generating an average of 102.52 million kWh annually at a price of 0.61 yuan per kWh. Lin Boqiang believes the wind power sector is indeed showing signs of improvement, driven by both internal demand and broader economic trends. He emphasizes that government support has encouraged companies and local authorities to seize opportunities, aligning with China’s shift toward cleaner energy sources. Shi Lishan, deputy director of the National Energy Administration’s New Energy Department, emphasized that wind power is a clean, renewable resource that should be strongly supported rather than restricted. He also highlighted the importance of grid expansion and improved dispatch policies to better integrate wind power into the national energy system. The national grid has made progress in addressing past concerns about low wind power utilization. As of September 2013, the grid-connected wind power capacity reached 64.26 million kilowatts, up 21.5% year-on-year. The grid has pledged continued support through infrastructure upgrades and prioritized wind power dispatch. Despite these positive developments, challenges remain. One major issue is wind curtailment, where excess wind power cannot be fully utilized. In 2012, China wasted 20.8 billion kWh of wind energy, with a curtailment rate of around 17%. Shi Lishan stressed the need for effective measures to reduce this waste, including limiting wind power construction in high-curtailment areas and developing flexible electricity loads like wind-powered heating. Lin Boqiang also pointed out that overcapacity in wind turbine manufacturing remains a critical challenge. In 2011, China’s wind equipment production capacity reached over 30 GW, but only 18 GW was newly installed, leaving more than 40% idle. While the industry is recovering, he warns against excessive optimism and urges continued support for the equipment sector. To address these issues, Shi Lishan proposed strengthening industrial monitoring systems, improving standards, and promoting self-regulation to prevent unhealthy competition. With proper policy support and strategic planning, the wind power industry can continue its upward trajectory while overcoming existing challenges.

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