China to lead wind power market through 2020

August 15, 2013 | By Barbara Vergetis Lundin

Despite a slowed growth rate, China will continue to be the largest wind power market in 2020, as it attempts to reduce its carbon footprint while increasing electricity production in rural areas, according to research and consulting firm GlobalData.

Wind turbines field at Yantai on Chang Island, Shandong province, China. Credit: Popolon/Wikimedia Commons

China doubled its cumulative wind capacity every year between 2006 and 2011 at a compound annual growth rate of 76 percent, according to the research. China, along with the US, Germany, UK, Italy, Spain and India, accounted for 74 percent of global installed wind capacity in 2012, the firm says.

China's success can be attributed to a combination of market guidance and government encouragement, according to GlobalData, after the Chinese government introduced a number of financial and regulatory initiatives to promote renewable energy sources.

"Supportive government policies that include an attractive concessional program and the availability of low-cost financing from government banks are the main reasons for the growing wind power market in China," Swati Singh, GlobalData's power sector analyst, said.

However, the growth rate will slow due to insufficient infrastructure, low quality wind turbines, and questionable pricing policies.

"The outlook for the wind energy sector appears positive, although future growth is expected to slow down during the forecast period," Singh said. "This is mainly due to continuing uncertainties in the U.S. and the maturing European wind power market."

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