China Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Chinese wind energy market is expected to register a CAGR of more than 11.5% over the period of 2022-2027. Although China is the origin country of the COVID-19. The Wind Energy Market had not been affected by the coronavirus. Since China achieved the record of installing half of the new global offshore wind capacity i.e 6.012 GW during 2020 despite global pandemic. Factors such as an increase in environmental awareness, government regulations, and decreasing cost per kilowatt of electricity generated through renewables are expected to drive the market. However, the high initial cost for setting up wind energy projects is expected to restrain the growth of the market.

Key Highlights

• The offshore wind energy segment is expected to witness growth in the market in the forecast period with the subsidies provided by the government.
• Many of the provinces in the country have ambitious official targets, such as Guangdong plans to build 30 GW offshore wind by 2030, followed by Jiangsu (15 GW), Zhejiang (6.5 GW), and Fujian (5 GW). Other coastal provinces, namely Liaoning, Hebei, Shandong, Shanghai, Guangxi, and Hainan, also have their own offshore wind development plans, although their targets are much lower than the four leading provinces. This is expected to provide opportunities for the market players.
• Increasing number of wind energy projects within the country is expected to propel the growth of the market, during the forecast period.

Key Market Trends

Offshore Segment to Witness the Fastest Growth

• The offshore wind energy segment is among the fastest-growing type of Wind energy in the country. The country has a vast amount of coastal regions.
• With a coastline of over 18,000 km, China has more than 1,000 GW of technical potential for offshore wind at the hub height of 90 meters. Currently, there is no long-term national offshore wind target in China, but coastal provinces have set ambitious official targets.
• Offshore wind energy is among the fastest-growing sectors in the country. China achieved an installed capacity of 8.990 GW, which is comparatively higher than 5.930 GW in 2019. China surpassed Germany, France, Netherlands, and Portugal as the world’s leading offshore market in new installations in 2020. The Chinese wind power market is largely comprised (nearly 95%) of Chinese manufacturers.
• In August 2020, Global Wind Energy Council stated that China is expected to host more than a fifth of the world’s offshore wind turbines, equating to 52 GW, claiming the top spot for the largest market for offshore wind by 2030.
• Moreover, Chinese provinces have set various targets to increase offshore wind power. Owing to this, Guangdong intends to build 30 GW of offshore wind power by 2030, followed by Jiangsu (15 GW), Zhejiang (6.5 GW), and Fujian (5 GW). Other provinces have also set up their own targets and developed offshore wind development plans.
• Therefore, offshore wind energy is expected to grow fastest in the coming years, with additional investments in the segment.

Increasing Number of Projects to Drive the Market

• Due to the high population and increasing electricity demand day-to-day, the country is promoting the growth of wind energy to meet power needs. Many multinational corporations, including Chinese firms, are investing in the growing sector with the help of the government of federal and provinces in China.
• China connected 70 GW of onshore wind in 2020, boosting its total onshore installations to 273.003 GW. China's onshore wind sector has gone through a crucial period of regulatory reform in recent years.
• To support large scale deployment, many multinationals are setting up their production facilities in the country. In May 2020, GE Renewable Energy announced to open a new offshore wind factory at Jieyang's Offshore Wind cluster in the Chinese province of Guangdong. The new GE offshore wind factory will help meet the growing Chinese demand for offshore wind energy and serve domestic and regional projects.
• As of 2020, China Installed 281.993 GW of wind energy which is comparatively higher than Further growth in the installed capacity of wind energy is expected to remain high in the forecast period.
• In November 2021, China's State Power Investment Corp (SPIC) connected two newly built offshore wind farms of south China's Guangdong province to the state grid.
• - Moreover, the country is planning to install 100 GW of wind and solar through it massive China Desert Project. By the end of 2021, the construction of first phase of the project with 10 GW installed capacity has started and the overall project is expected to get commissioned by 2025.
• Thus, the growing investment from the state-owned companies and favorable government policies in wind energy generation is expected to drive the growth of the China wind energy market during the forecast period.

Competitive Landscape

The Chinese wind energy market is fragmented. The key players include Xinjiang Goldwind Science & Technology Co. Ltd, ENVISION GROUP, Shanghai Electric, Dongfang Electric Corporation, and Mingyang Smart Energy Group Limited among others.

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• The market estimate (ME) sheet in Excel format
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