CAMBRIDGE, MASSACHUSETTS, USA, October 22, 2008.

China is on its way toward 135 GW of installed wind capacity by 2020 representing a US$300 billion investment, according to a report from Emerging Energy Research (EER), an advisory and consulting firm tracking emerging technologies.

EER says these enormous investment levels are intended to clean up China’s energy picture, and to support the development of a globally competitive wind turbine supply chain, from turbines to gearboxes and blades. This will have a “transformational impact” on the global industry, the research firm writes.

The key findings from “China Wind Power Markets and Strategies, 2008–2020” are:

- China is on track to lead the global wind market in annual installations by 2011, supported by strong political will, improving incentives, and vast natural and industrial resources. But growth will depend on greater supply competition, improved and enhanced transparency of project economics, and improvements in the quality of locally manufactured turbines and wind project design. How these factors evolve will determine the size and nature of opportunities in the decade ahead.

- China’s wind development value chain is evolving, with major state generators consolidating their presence while independent power producers (IPPs) and foreign entrants seize opportunities as project owners, operators, and technical consultants. China’s industry-wide demand for project management and technical skills will perpetuate opportunities for foreign ownership, executed in the form of equity-based partnerships.

- Turbine and component manufacturers are stepping up to meet booming demand, striking a balance between quality, production capacity, cost, and local content. China’s national wind power base initiative is creating opportunities for manufacturers to scale up their product offering to capture mega-scale project contracts as well as potential export sales. As the market matures, rapid supply chain build-up should introduce reliable sourcing options for all players, enabling greater standardization in quality and pricing.

Click here for more information