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Wind power industry is showing signs of recovery and wind power curtailment within three years or cracked
Last year was a tough time for the wind power industry, but looking back now, I believe it's starting to pick up. Li Junfeng, a respected figure in the field, shared words of encouragement that brought warmth and hope to the sector.
In the first half of this year, China’s wind power capacity rebounded by 28%, and by the end of the year, it is expected to exceed 75 million kilowatts. This growth will reestablish China as the global leader in wind power. Many companies have also seen a strong recovery in the market, showing signs of renewed confidence.
What’s even more encouraging is that the long-standing issue of wind curtailment—once a major headache for the industry—is finally being addressed. Experts believe that this problem could be significantly reduced within the next two to three years.
For the wind power sector, 2013 marks a turning point, and this positive trend is expected to continue into 2014. Industry insiders are optimistic about the future.
By the end of the year, China’s installed wind power capacity is projected to surpass 75 million kilowatts, generating around 140 billion kilowatt-hours of electricity. Wang Jun, director of the National Energy Administration, announced this promising development at the Beijing International Wind Energy Conference.
This is just the beginning. The "2013 China Wind Power Development Report" released on the same day predicts that China will reclaim its position as the world's top wind power producer.
The report, jointly published by several key organizations, highlights that over the past three years, China’s cumulative wind power capacity has grown from 25.8 GW to 75.38 GW, making it the global leader. According to CEC data, wind power investment rose by 5.3% year-on-year in the first half of the year, while grid-connected generation increased by 39.3%.
He Dexin, chairman of the China Wind Energy Association, noted that in the first half of 2013, China added 5.5 million kilowatts of new wind capacity, marking a slight recovery. Many wind power companies have started to turn a profit again.
With the decentralization of project approvals and the restart of equipment tenders, wind turbine manufacturers are experiencing better times. For instance, Goldwind saw a 40.7% increase in successful bids compared to 2012, with net profits exceeding 100 million yuan—an increase of 28.27% over the previous year.
Good news continues to emerge. Wu Gang, chairman of a leading company, mentioned that the nationwide electricity price has risen by 7%, and grid expansion is accelerating. Greater transparency and standardization are also improving the industry environment. Some investors have even established their own testing centers, enhancing professionalism.
Many previously delayed projects have now been approved. Zheng Zonggong, general manager of Vestas China, noted that wind activity has picked up in regions like Fujian, Guangdong, and Xinjiang, where wind resources are strong and transmission issues are being resolved.
In his view, China’s policies and government support are becoming more mature, and the industry is moving in the right direction. It feels like spring is coming after a long winter.
Wind curtailment, which caused significant losses in 2012, is now being tackled. That year, China installed 12.96 GW of wind power, falling just short of the U.S. by 164 MW. This marked the first time since 2009 that the U.S. reclaimed the top spot. The report attributed this to severe wind curtailment, with over 20 billion kWh lost in 2012—double the amount from 2011.
This issue not only hurt the economic returns of power companies but also dampened investor enthusiasm and led to energy waste. The report pointed out that the challenge lies in integrating wind power into the grid due to its intermittent nature, as well as outdated policy mechanisms.
Wang Jun admitted that the existing power system needs to be updated, and there is a lack of overall planning for different power sources. Improving the technical level of wind power integration is crucial.
Looking ahead, the National Energy Administration is working on better policies and grid reforms to ensure full purchase of wind power. They aim to resolve curtailment issues within two to three years.
Shi Lishan, deputy director of the National Energy Administration, emphasized that coordinating power supply and heat supply is essential to managing wind power fluctuations. With recent advancements in low-speed turbines, wind power is gaining traction in central and eastern China, creating new opportunities.
After eight years of rapid growth, the Chinese wind power industry is entering an adjustment phase. Li Junfeng, chairman of the Renewable Energy Committee, described it as both the worst and best era. A slower growth rate allows companies to refine operations, reduce excess capacity, and address grid and quality challenges.