More Products Shanxi Skysea Pump Lndustry Co.,Ltd. , https://www.skyseatianhai.com
Wind power industry is showing signs of recovery and wind power curtailment within three years or cracked
Last year was supposed to be the winter for the wind power industry. But a year later, I believe the sector is starting to recover. The words of Li Junfeng, a respected figure in the field, bring hope and encouragement.
In the first half of this year, China's wind power installation capacity rebounded by 28%. By the end of the year, the total installed capacity is expected to exceed 75 million kilowatts. This will mark a return to the top position in global wind power growth. Meanwhile, many players in the market have also seen a successful recovery.
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 suggest that it could be resolved within the next two to three years.
For the wind power industry, 2013 has become a turning point, and the positive trend is expected to continue into 2014. A senior industry insider remarked.
At the end of the year, China's wind power capacity will surpass 75 million kilowatts, with annual generation reaching 140 billion kilowatt-hours, according to Wang Jun, director of the National Energy Administration, who announced the news 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 leader in wind power growth.
The report, jointly issued by several key associations and the Global Wind Energy Council, highlights that over the past three years, China's cumulative wind power capacity has surged from 25.8 GW to 75.38 GW, making it the largest in the world.
According to data from the China Electricity Council, wind power investment increased by 5.3% year-on-year in the first half of the year, while grid-connected wind power generation rose by 39.3%, with equipment utilization hours reaching 1,011, up by 91 hours compared to the previous year.
He Dexin, chairman of the China Wind Energy Association, noted that in the first half of 2013, China added 5.5 million kilowatts of wind power capacity, marking a modest recovery. Many wind power companies have started to turn a profit.
With the decentralization of project approvals and the start of wind farm tenders, turbine manufacturers are enjoying better business conditions this year.
Goldwind, for example, won 40.7% more bids in the first half of the year compared to 2012, and its net profit exceeded 100 million yuan, up 28.27% from the same period last year.
Good signs are emerging. Wu Gang, chairman of a leading company, said that the national electricity price sharing has increased by 7%, and grid construction is accelerating. Industry associations and the National Energy Administration are also improving transparency, standardization, and regulation.
Some investors have even established their own testing centers, showing a growing level of professionalism.
Many previously delayed projects have now been released. Zheng Zonggong, general manager of Vestas China, told reporters that wind activity has picked up in certain regions, such as Fujian and Guangdong, which have strong wind resources and high energy demand. Also, areas like Xinjiang, where transmission issues are being addressed, are showing improvement.
In his view, China's policy framework and government support are becoming more mature, along with developers and manufacturers. It feels like spring is finally arriving after a long winter.
Wind curtailment or the "crack" in the industry may be resolved within the next few years.
In 2012, China's new wind power capacity reached 12.96 GW, slightly behind the U.S. by 164 MW, marking the first time since 2009 that the U.S. reclaimed the top spot. The report attributes this to the worsening problem of wind curtailment.
In 2012, over 20 billion kilowatt-hours of wind power were wasted, doubling from 2011, accounting for 20% of total wind generation. The northern regions, especially Mengdong and Jilin, faced severe curtailment, with some areas exceeding 50%.
This issue not only hurt the profitability of wind farms but also dampened investor enthusiasm and led to significant energy waste, reducing the environmental benefits of wind power.
The report notes that the challenge stems from the intermittent nature of wind power. However, deeper causes include outdated power system rules and policy mechanisms that haven’t adapted to the volatility of renewable energy.
Wang Jun admitted that as wind power grows, existing power systems need better regulation, and there is a lack of overall planning for different energy sources. Technical capabilities for wind integration also need improvement.
Additionally, the idea of wind power as a substitute for coal-fired power hasn't gained enough consensus, leading to more curtailment.
The National Energy Administration is working on improving policies and reforming the power system to ensure full purchase of wind power, aiming to solve the curtailment issue within two to three years.
Looking ahead, the wind power management system will be refined, and development plans will be optimized based on local conditions. With recent advances in low-speed turbines, wind power in central and eastern China, where demand is high, has expanded significantly, creating new growth opportunities.
Due to the variability of wind resources, large-scale wind power still faces operational constraints under current technology, management, and policy environments. This has limited the industry's potential. Shi Lishan, deputy director of the National Energy Administration, noted that due to these restrictions, corporate investment enthusiasm hasn’t been as strong as in previous years.
He explained that future efforts will focus on expanding resource planning and increasing cross-regional power transmission, allowing wind power fluctuations to be absorbed by flexible loads in larger grids.
To truly promote large-scale wind power development, the energy management system must be rationalized. Shi emphasized that China’s energy sectors remain highly isolated, and while electricity can’t be stored, heat can. Balancing power and heat supply is crucial for managing wind power volatility.
After eight years of rapid growth, the Chinese wind power industry is entering an adjustment phase. According to Li Junfeng, chairman of the Renewable Energy Committee, this is both the worst and best era. A slower growth rate allows companies to reassess and reduce redundant capacity, helping to resolve grid and quality issues.