Five-Year Plan: Market Value of Wind Power Equipment in China Will Surpass $17.3 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Zhao Xizheng, Chairman of the China Electricity Council, said September 15, 2007, at the Fourth Summit Forum of China Electrical Industry Development that the 11th five-year plan (2006-10) promises the market prospect of wind power and wind-power-equipment manufacture; that the installed capacity of wind power will reach 20 million kilowatts; and that the market value of the equipment will surpass $17.3 billion.

Installed capacity of wind power in China is expected to surpass nuclear power and become the third largest power-generation source in 30 years. It could then surpass hydropower and reach 350 million kilowatts and become the second largest power generation source after thermal power in 50 years.

“In view from the development prospect of new energies such as wind power, solar power and biomass power, wind power is the best,” Zhao said. “In a period in the future, wind power and wind power equipment manufacture in China will have a promised prospect.”

Regarding the pricing through public bidding for wind power, active change has been achieved this year, he said. The current price is sufficient enough to promote the development of the wind power market, as the Regulation Rule on Full Procurement of Electricity Produced from Renewable Energy by Grid Enterprises published by the State Electricity Regulatory Commission (SERC) requires that grid enterprises will be responsible for procuring electricity produced by renewable energy. The current price is relatively high.

Despite achievements in the electric power industry, the average level per capita remains very low (only 0.47 kilowatts per capital in 2006, far below the average of 1 kilowatt per capita in developed countries). Therefore, development remains the main task in China, Zhao said. Energy conservation and emission reduction will be electric power industry’s main focus. All departments involved promote energy conservation and emission reduction by legal and market means, and reduce the use of administrative means. In addition, the industry will not spare efforts to carry out structure adjustment, such as accelerating the construction of large units and the closing of smaller units; enhancing the development of hydropower, renewable energy, as well as new energy; promoting the construction of transmission grids, and more.

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