Wind Energy in ChinaWind Energy in China

By

Yongsheng Lou

Coach

Niels Ehlers

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Contents

1. Overview Of World Wind Energy

2. Situation Of Wind Power in China

3. Development Outlook and Recommendations

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1. Overview of World Wind Energy1.1 Development of World Wind Energy

Source: WWEA member survey and own research.3

1. Overview of World Wind Energy1.2 Wind Power Capacity by Region

World Onshore and Offshore Resource Map, with Installed Capacity,

Production and Manufacturing Data for Leading Countries 2007

Source: IEA. Renewable Energy Essentials: Wind.4

1. Overview of World Wind Energy1.2 Wind Power Capacity by Region

Global Installed Wind Power Capacity-Regional Distribution 2005-2006

Annual Installed Capacity by Region 2003-2006

Source: GWEC. Global Wind 2006 Report. 5

2. Situation of Wind Power in China2.1 Wind Energy Distribution in China

Distribution of Annual Duration of Wind Speed above 3m/s in China

Source: http://www.windpower-china.cn.6

2. Situation of Wind Power in China2.1 Wind Energy Distribution in China

� Inner Mongolia

� Xinjiang

� The Gansu Hexi Corridor

� Huabei

� The Qinghai-TibetanPlateau

� Southeast coastal areas

� Adjacent islands

Technically exploitable wind resource is about

1,000GW (onshore 253GW and offshore 750GW)

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2. Situation of Wind Power in China2.2 Development of Wind Power

Cumulative and Annual Installed Capacity of Wind Power 1995-2006

Source: GWEC. China Wind Power Report 2007.8

2. Situation of Wind Power in China2.2 Development of Wind Power

� Wind power 2007: 5.6Twh

Total electrical energy 2007: 3,264Twh

About 0.172%

� Wind power 2008: 12.8Twh

Total electrical energy 2008: 3,433.4Twh

About 0.373%

Source: http://www.chinapower.com.cn.

We can produce more!9

2. Situation of Wind Power in China2.3 Stages in The Development of Wind Farms

� Three stages in the development of grid-connected

wind farms

� 1st . The initial demonstration period (1986-1993):

The main activity was to build small-scale demonstration wind

farms by utilizing grants from foreign donor countries and loans.

Support from the government was mainly in terms of financial

backing, such as investment in wind farm projects or in the

development of wind turbines.

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2. Situation of Wind Power in China2.3 Stages in The Development of Wind Farms

� Three stages in the development of grid-connected

wind farms

� 2nd. The industrialization period (1994-2003):

It was decided that the grid utility should facilitate the connection

of wind farms to the nearest grid and all the electricity generated

by wind farms should be purchased. Also VAT reduced.

However, with the reform of the electricity supply system and its

transformation into a competitive market, the wind power

industry developed slowly due to its high cost and vague policy

support.

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2. Situation of Wind Power in China2.3 Stages in The Development of Wind Farms

� Three stages in the development of grid-connected

wind farms

� 3rd. the scaling-up and domestic production period

(2003-2008):

NDRC aimed to commercialize the wind industry by initiating a wind power

concession program in 2003. A Renewable Energy Law was introduced in

2006 which, together with other measures such as a pricing policy,

obligation on grid companies to purchase renewable electricity, and cost

distribution, has boosted the development of renewable energy in China.

As a result the wind industry has moved into a rapid growth phase.

Source: Li Junfeng, et al. Study of China Wind Power Price Policy. 2006.

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2. Situation of Wind Power in China2.4 Wind Turbine Production

Market Share of Domestic and Foreign Wind Turbines

2004-2006

Source: GWEC. China Wind Power Report 2007.

� In 2006, the total capacity of wind turbines produced by domestic

manufacturers was about 540MW, accounting for 41.3% of the

market. This was an increase of 11% on the previous year.

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2. Situation of Wind Power in China2.5 Installed Capacity of Wind Power

Turbine Capacity Types Installed at The End of 2006

Source: GWEC. China Wind Power Report 2007.

� By the end of 2006, the number of wind turbines installed in China

amounted to 3,311 units, of which 366 were of 1MW capacity or

above, accounting for 11% (Figure above).With a total installed

capacity of 2,600MW.

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2. Situation of Wind Power in China2.6 Price of Wind Power Generation

Wind Power Cost Reduction 1980-2005

Source: U.S. DOE.

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2. Situation of Wind Power in China2.6 Price of Wind Power Generation

Price l: Newly Installed

Price 2: Previously Installed

Data source: WWEA.

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2. Situation of Wind Power in China2.6 Price of Wind Power Generation

� History of wind power pricing systems

� 1990-1998: Free competition stage

less than 0.3Yuan/kWh

� 1998-2003: Government approved prices

0.3Yuan/kWh~1.2Yuan/kWh

� 2003-2005: Tender prices or approved prices

Concession project: 0.4Yuan/kWh~0.5Yuan/kWh

Non-concession project: 0.4Yuan/kWh~1.2Yuan/kWh

� After 2006: Bidding price plus approved price

0.45Yuan/kWh~0.75Yuan/kWh

Data Source: GWEC. China Wind Power Report 2007.

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2. Situation of Wind Power in China2.7 CDM Projects for Wind Industry

CDM Projects and CDM for Wind Industry in China

Data Source: http://cdm.unfccc.int.

Until 1.1.2009

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3. Development Outlook and Recommendations3.1 Government Long-Term Plans

� Renewable energy

up to 10% by 2010

up to 15% by 2020

� Installed wind power capacity

up to 10GW by 2010

up to 30GW by 2020

Data source: National Development & Reform Commission. Renewable

Energy Long-term Development Plan.

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3. Development Outlook and Recommendations3.2 Issues for Wind Power Development

1. Wind resource assessments are not accurate enough.

2. Innovation capacity is weak and a fully functioning wind

industry is not yet in operation.

3. Grid construction and management has not kept pace

with the development of wind power.

4. The public service system for supporting wind power is

inadequate.

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3. Development Outlook and Recommendations 3.3 Recommendations

1. Further improve the support systems

2. Increase investment

3. Further improve the regulatory system

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References

• http://www.eia.doe.gov

• http://www.iea.org

• http://www.iaee.org

• http://www.windustry.com

• http://www.windpower-china.cn

• http://www.eon-netz.com

• http://www.sinotecinvt.com/windpower.html

• http://www.gwec.net

• http://www.wwindea.org

• http://www.cwea.org.cn

• http://www.awea.org

• http://www.bp.com

• http://cdm.unfccc.int

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Thanks for your attention!

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