China’s Wind Power Market:  Maturity, Growth, and the Challenge of Curtailment in 2012

China in 2011 surpassed Germany and the U.S. to become the largest wind country by nameplate capacity and is set to become the world’s largest wind energy generator—China currently supplies roughly one-fourth of all the wind energy injected into the grid worldwide. Yet the sector faces immense challenges, from ongoing problems with grid connection, ever-growing amounts of curtailed wind generation, new restrictions from State Grid on who can connect, and, perhaps most importantly, uncertainty about whether policymakers will do as they have in the past to ensure the sector continues its rapid growth.

As early as two years ago, it was already becoming apparent that China’s wind industry would quickly mature, and that policy would have to shift toward more rational allocation of capital towards projects with the largest potential to supply needed energy at low cost. The latest results from the third quarter of 2012 show that this rationalization is still some ways off: curtailment is still a widespread problem, and industry profits have remained depressed.

In this exclusive webinar, GTM Research partner Azure International will discuss our inaugural China Wind Market Quarterly report, and many of its important findings:

• In the third quarter of 2012, China added an estimated 2.9 GW of new wind capacity, including both connected and unconnected capacity.
• Total China wind capacity reached an estimated 71 GW of nameplate wind capacity at the end of the quarter.
• China is on track to add a further 9 GW in the fourth quarter and reach 80 GW of total capacity.
• Decelerating growth and mounting curtailment woes in the Chinese wind industry cut sharply into corporate profits this quarter. Furthermore, as part of the industry-wide consolidation that began earlier this year, Chinese companies announced a number of new acquisitions and strategic partnerships.