China - The world's fastest growing wind energy market

China consumes 10% of the world's total energy, 70% of its primary energy consumption was coal, which is 40% higher than the world average. The SO2 pollution caused by coal burning accounted for 70% to 80% of the total emission amount. Furthermore, the acid rain triggered by SO2 covers 1/3 of the entire area of China. The quality of the environment is continuously deteriorating, according to the World Bank; by the end of 2020 the environmental and health losses caused by air pollution will reach 13% of the total GDP value. Therefore, the development of clean energy has become the inevitable choice of China’s energy strategy.

Wind power is sustainable and is a form of clean energy; compared with conventional energy. Generating power from the wind does not require the burning of fossil fuels; hence, there is no risk of a fuel price rise. Additionally, there are no environmental costs, such as carbon emissions. Therefore, China has chosen wind power as an important alternative power source in order to rebalance the energy mix, combat global warming and ensure energy security. Supportive measures have been introduced to encourage technical innovation, market expansion and commercialization, with development targets established for 2010 and 2020, concession projects offered and policies introduced to encourage change in domestic production.

Consequently, China's wind power industry has achieved a significant degree of development in recent years. With 100% growth rate in two consecutive years and 3,450 MW installed capacity in 2007, only second to the US and Spain; demonstrating how China has become one of the fastest growing wind power markets in the world.

According to the Middle and Long Term Program of Renewable Energy Development enacted by the Chinese Government in August 2007, the target for total wind installation capacity by the end of 2010 is 5,000 MW. China now ranks fifth in the world for its installed wind energy capacity with over 6,000 MW at the end of 2007, 20% more capacity than in the set target for 2010. During the Eleventh Five-Year Plan, an estimated 5,000 MW capacity will be installed between 2007 and 2010; with the actual installed capacity for year 2010 reaching 10,000 MW, by that time the substitution effect of wind power will be remarkable.

Over the next decade, with decreasing fossil fuel resource and higher generation costs, wind energy will become a highly competitive energy source. Technology, the maturity of the market, and global reach will essentially be the driving factors to achieve massive cuts in the power sector emissions in the near future; and throughout China's vast land mass and long coastline there is a rich resource of wind energy with great development potential. If China could maintain the current growth rate in the consumption of wind energy, it can be expected that China will overtake Germany and the US as the leader of wind energy capacity and consumption by the end of 2020.

Top 10 Total Installed Capacity

Top 10 New Capacity

Source: GWEC 2007