Bharat Book Bureau

Wind Turbine Systems in China report ( ) evaluates that the demand for wind turbine systems in China is forecast to rise 5.3 percent annually through 2013 to ¥62.3 billion. Increases will be driven by a variety of factors, primary among them government policies that encourage the use of renewable and nonpolluting electric power sources such as wind. Such policies include favorable pricing of wind power generated from wind farms, tax incentives and subsidies. Although somewhat modest by China standards, growth through 2013 is impressive, considering the high base from which it comes. Demand for wind turbine systems exploded from less than ¥1 billion in 2003 to more than ¥48 billion in 2008. This torrid growth was in large part a result of investment decisions made by state-owned enterprises motivated more by political incentives to meet renewable energy targets than by profit motives.

Utility-scale applications to remain dominant
Utility-scale electric power generation applications will continue to account for virtually all demand in 2013, reflecting government incentives to encourage utilities to use renewable energy to generate electricity, as well as manufacturer efforts to develop larger and more efficient turbine systems geared toward utility-scale energy production. The national government has established a renewable energy target of 15 percent of total energy generated in 2020, up from 9 percent in 2008. Despite the dominance of the utility-scale segment, China is one of the largest distributed wind turbine markets in the world. Distributed wind turbine systems are usually installed in remote areas (e.g., islands, high mountains and border regions) to generate power away from the electrical grid. Distributed models are also used for street lighting, traffic monitoring, communication and certain industrial applications.

Smaller regional markets to post above-average gains
The Central-North is the largest regional market for wind turbine systems in China, accounting for 47 percent of total national demand in 2008. Aided by the strong and well established markets in Hebei and Inner Mongolia, the region also has the largest share of installed wind turbine energy capacity, with 41 percent of the national total in 2008. The Northeast is the second largest regional market at 26 percent of demand, with the balance of China accounting for only 27 percent. Sales in the Central-North most directly benefit from the availability of large tracts of land where winds are strong and steady. Demand in the smaller regional markets of the Central- East, Central-South and Northwest will post above-average gains, driven by generous government incentives and growing interest in developing wind farms.

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