New Procedures To Harness Local Development Of Wind Power In
At the end of 2007, China's installed wind power capacity
reached 6 gigawatts (GW), and by the end of 2008 that is expected
to reach 10 GW.
To further support the development of the local wind power
industry, China's Ministry of Finance recently issued the
'Tentative Procedures for the Administration of Special Funds
for the Industrialisation of Equipment for Wind-driven Power
The Procedures aim to support the research of key technologies
for wind power equipment and to speed up the development of the
wind power industry in China.
Under the Procedures, the government will offer a subsidy to
domestic companies that develop new wind turbines. Chinese wind
turbine manufacturers will receive 600 yuan (US$87.71) per kilowatt
for the first 50 units they produce of any new turbine with a
capacity of 1 megawatt or more. The subsidy is to be used for the
research and development of new wind power equipment.
Manufacturers will need to meet certain criteria in order to
qualify for the subsidy. Most importantly, they must be
Chinese-funded or have a majority Chinese ownership. The subsidy
must also be shared equally between the manufacturers of the key
parts and the companies that assemble the finished product.
The initiative is likely to reduce the manufacturing cost of
wind turbine equipment in China, and this in turn could result in
greater affordability and the subsequent development of more wind
farms across the country.
Foreign manufacturers of wind turbine equipment – who
currently have the lion's share of the market in China
– receive no benefit from the subsidy. Clearly aimed at
supporting and stimulating long-term growth of the local industry,
the government's initiative poses a potential threat for
foreign manufacturers and is likely to close the gap between
foreign and domestic manufacturers.
Notwithstanding this, it is important to acknowledge the
government's focus on reducing greenhouse gas emissions and to
view the introduction of the Procedures as yet another measure
supporting the use of renewable energy sources as an alternative to
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