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China - 90GW Effective Wind Capacity Anticipated by 2015
May 19, 2010

China’s wind power sector has experienced outstanding development since the enactment of a landmark law by the Chinese government; the country now hopes to boast 90GW wind capacity by 2015.

According to China’s National Energy Administration (NEA), China is thinking of ways to assure grid connection and power output demand to be created from a planned 90 GW wind power capacity in 2015, as per the news published by Business Spectator.

The wind power sector of China has enjoyed remarkable growth since early 2005, when the government implemented its national renewable energy law. In 2009, the country enjoyed addition of 13,000 Megawatts of new wind capacity. With 25,000 Megawatts in total, the country, in each of the past 5 years, has doubled up its overall installed wind capacity. China now stands at the third spot after the US and Germany.

Presently, China is geared up to accomplish its 2015 target. Seven wind mega-complexes, each of 10,000-37,000 Megawatts, will be served by six selected provinces rich in wind resource, spreading across the northern half of the country—from northwestern Xinjiang to eastern Jiangsu.

After completion, these “wind bases” will have around 130,000 Megawatts of generating capacity. This capacity is more than what the entire world had at 2008-end. Further, the revision of China’s landmark Renewable Energy Law of 2006 is intended to shore up this ambitious wind sector growth.

The government agencies have been instructed to decide and implement the share of total electricity generation, which shall come from renewable sources. The amendments will also offer for badly required grid upgrades and transmission lines.

Despite these attempts, the industry needs to overcome some challenges to accomplish the target. “China Wind Sector Analysis”, a market research report by RNCOS, highlights one such challenge, which is the deficiency of flexibility. This is proving a major roadblock to the construction of wind projects in China. Moreover, investment by international players is also an area of concern. International players are reluctant to give the major power to an amateur domestic partner. This hesitance is further affecting the potential growth in the wind power sector.

According to a Research Analyst at RNCOS, “To address the challenges in the wind power sector, share holders, regardless of their structure, should be granted CDM (Clean Development Mechanism) certifications. If the projects have CDM certification, they become more lucrative. This is because these certified projects assure higher returns on investments. This will further result in a rise in the number of wind power projects in the country. In addition, China’s national and provincial tax revenues will increase.”

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