China Wind Energy Market - Growth, Trends, Covid-19 Impact And Forecasts (2021 - 2026)

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China is the origin country of the global pandemic of COVID-19. Although China managed to get the virus under control within two months, the damage has been done to the flow of supply chain and project executions in 2020, and a few months delay is expected, specifically for onshore wind. The sector has also been adversely affected by the coronavirus due to a slump in the demand for electricity consumption in the year 2020. Factors such as an increase in environmental awareness and regulations and decreasing cost per kilowatt of electricity generated are expected to provide a boost to the market. However, the large initial cost is expected to restrain the growth of the market.

Increasing investment is expected to aid the growth of the market especially in the solar and wind sector.

Many of the provinces in the country have ambitious official targets, such as Guangdong plans to build 30 GW offshore wind by 2030, followed by Jiangsu (15GW), Zhejiang (6.5 GW), and Fujian (5 GW). Other coastal provinces namely Liaoning, Hebei, Shandong, Shanghai, Guangxi, and Hainan, also have their own offshore wind development plans, ...
... although their targets are much lower than the four leading provinces. This is expected to provide opportunities for the market players.

The offshore wind energy segment is expected to witness growth in the market in the forecast period with the government subsidies provided by the government
Key Market Trends

Increasing Investments to Drive the Market

High electricity demand, due to the high population, in the country is expected to promote growth in Wind energy. Many Multinational corporations including Chinese firms are investing in the growing sector with the help of the government of Federal and Provinces in China.

China grid-connected 23.8 GW of onshore wind last year, boosting its total onshore installations to 230 GW. China's onshore wind sector has gone through a crucial period of regulatory reform in the past two years. In 2018, the Chinese government introduced an auction scheme, and a year later the National Development and Reform Commission (NDRC) released a new policy presenting a clear roadmap towards subsidy-free onshore wind. This regulation means that projects already approved until 2018 will continue to receive the Feed-in-Tariff (FiT) if they are grid-connected before the end of 2020. Starting from 1 January 2021.

To support large scale deployment many multinationals are setting up their production facilities in the country, such as GE Renewable Energy is going to open a new offshore wind factory at Jieyang's Offshore Wind cluster in the Chinese province of Guangdong and will establish a new Operation and Development Center in the city of Guangzhou. The new GE offshore wind factory in Jieyang will help to meet the Chinese growing demand for offshore wind energy and will serve domestic and regional projects. Site construction is expected to begin at the end of this year, completed in 2021, and will start assembly production in the second half of 2021.

The Chinese wind power market is largely dominated by its onshore segment, which has an installed capacity of 23.76 GW in 2019. Through the 206 GW total installations at the end of 2019, China became the first market to surpass 200 GW of the total installed capacity, reaching its target of 200 GW two years earlier than planned (based on the Five-year Plan 2016-2020). Adding to this, the total wind power generation reached 405.7 TWh in 2019 exceeding 400 TWh for the first time and accounting for 5% of the total power generation in the country.

The wind energy installed capacity in the country has grown by approximately 14% to 210.5 GW in 2019 from 184.5 GW, in 2018. Further growth in the installed capacity of wind energy is expected to remain high in the forecast period.

Hence, increasing investment in the Wind energy sector is expected to aid the growth of the market

Offshore Segment to Witness Fastest Growth

Offshore wind energy Segment is among the fastest-growing type of Wind energy in the country. The country has a vast amount of coastal regions which aid in the growth of the market.

With a coastline of over 18,000 km, China has more than 1,000 GW of technical potential for offshore wind at the hub height of 90 meters. Currently, there is no long-term national offshore wind target in China, but ambitious official targets have been set by coastal provinces.

Offshore wind energy is among the fastest-growing sectors in the country. China achieved a new record in 2019 and installed more than 2.3 GW of offshore wind in a single year. China surpassed the United Kingdom as the world's leading offshore market in new installations in 2018. The country's target of 5 GW grid-connected offshore wind by 2020 was already reached in 2019, following the new installation of 2.4 GW of offshore wind that year. Currently, China has a cumulative installed offshore wind capacity of 6.8 GW, making it the third-largest in the world.

The Chinese wind power market is largely comprised (nearly 95%) of Chinese manufacturers. As of the end of 2018, the top turbine manufacturer in China was Goldwind (31.7%), followed by Envision (17.5%) and Mingyang (11.8%). The small non-Chinese presence (4%) is held by three main foreign manufacturers, namely, Vestas (2%), Siemens-Gamesa (1%), and GE (1%).

The offshore wind energy installed capacity in the country increased by 29%, to 5,930 megawatts in 2019 from 4,588 megawatts in 2018. The hydropower installed capacity is expected to further increase in the forecast period.

Therefore, offshore wind energy is expected to grow fastest in the coming years with additional investments being made in the segment
Competitive Landscape

The China wind energy market is fragmented. The key players include Xinjiang Goldwind Science & Technology Co., Ltd., ENVISION GROUP, Shanghai Electric, Dongfang Electric Corporation and Ming Yang Wind Power Group Limited.

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