Sunday, March 19, 2006

A market for wind energy in China

An Indian wind turbine manufacturer is ready to break into the Chinese market for wind energy, thanks to a new mandate requiring China to get 10 percent of its energy from renewable sources by 2020.

According to an article in the Indian newspaper, The Hindu, the potential for wind energy in China is great; current capacity is 1,260 Megawatts and China's ambition is to bring that number to 30,000 Megawatts by 2020. The energy law will require the purchase of the more expensive renewable energy at prices fixed by the government.

The drive to setting up set up renewable energy programs has led the Chinese to collaborate with outside firms, largely European. An Indian company highlighted in the article, Suzlon Energy, will set up a wind turbine factory in Tianjin, China. "The factory, scheduled to begin operations in August, will manufacture rotor blades, generators and control panels and will have an annual capacity of 600 MW for all components."

Foreign companies are often given incentives to localize their business on the Chinese mainland, passing on some of their industrial know-how to a generation of Chinese workers and entrepreneurs in the process. How long before the Chinese successfully begin building these wind turbines for themselves?

For more on Suzlon's and China's renewable energy plans, see the article link.