Keywords: China, restrictions, wind turbines,
wind power sector market, NDRC
In a major turnaround, the Chinese Government has dropped its
requirement that wind turbines have 70 percent Chinese content,
thus potentially heralding additional foreign participation in an
already crowded wind power sector market. In the next decade, China
seeks to increase its wind power capacity five-fold to 100,000
Pursuant to the Circular Abolishing the Requirement on the Rate
of Localisation of Equipment Procurement on Wind Power Projects
(NDRC Energy  No. 2991) issued by the National Development
and Reform Commission (the "NDRC") on 25 November 2009,
the NDRC no longer requires that 70 percent of the wind-power
equipment used in China should be produced domestically, whether by
foreign or local manufacturers.
In early 2004, the NDRC approved for the first time open tenders
for wind farm concessions in Rudong, Jiangsu Province and Huilai,
Guangdong Province. On 4 July 2005, NDRC published the Circular
Regarding Requirements of the Administration of Wind Power
(NDRC Energy  No. 1204), stipulating the requirement that at
least 70 percent of the wind turbine equipment needs to be produced
in China in order for the project be approved. In 2005, four more
wind farm concession projects were approved by the NDRC in
Huitengxile, Inner Mongolia Autonomous Region, Dongtai, Jiangsu
Province and two projects in Tongyu, Jilin Province. All the
projects approved in 2005 were required to source at least 70
percent of the wind turbine parts domestically.
This restriction previously limited investment opportunities for
the leading foreign wind turbine manufacturers. According to CLSA
Research, China has 70 wind-turbine makers with a capacity of about
15,000 megawatts per year.
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