An overview on the status quo of onshore and offshore wind power development and wind power enterprise localization in China

ABSTRACT

A series of main supporting policies implemented by the government from 2009 to 2016 is summarized in this paper. Due to the lack of studies on wind energy development in China up to the 13^th Five-Year Plan, this paper aims to provide a systematic overview of the evolution and implementation of onshore and offshore wind power development, as well as analyze the localization and competitiveness of wind power enterprises. This paper introduces how the Chinese government efficiently promotes the drastic wind power development by means of fiscal and non-fiscal policies, which includes stimulating the wind power investment, addressing the wind power curtailment problem, localizing the Chinese-owned manufacturers in domestic markets and internationalizing the exposure of Chinese-owned enterprises. This paper concludes that the effectiveness of wind power policies enacted is high, and they play a vital role in the Chinese wind power market.

Abbreviations: FYP: Five Year Plan; UNFCCC: United Nations Framework Convention on Climate Change; CDM: Clean Development Mechanism: REL: Renewable Energy Law; NDRC: National Development and Reform Commission; MF: Ministry of Finance; SC: State Council; FIT: Feed–in–Tariff; CWEA: Chinese Wind Energy Association; NEA: National Energy Administration; SGCC: State Grid Corporation of China; CSG: China Southern Power Grid Corporation; SOEs: State–owned enterprises; NEB: National Energy Bureau

KEYWORDS:

• Wind power
• curtailment rate
• capacity factor
• industry localization
• policies
• competitiveness

Notes

¹ Appendix III introduces the wind resource areas in China, which are Category I, II, III and IV, it also introduces the six regional power grids in China (North, Northeast, Northwest, South, Central and East) classified by geographical location. The following paper will directly use these terms.

² “Big Five”: China Huaneng Group, China Datang Corporation, China Huadian Corporation, China Guodian Corporation, State Power Investment Corporation.