Wind power

Japan: China's offshore wind is taking the world by storm

Seetao 2022-06-14 11:30
  • China will account for 80% of the world's newly installed offshore wind capacity in 2021
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According to the Global Wind Energy Council, the amount of new (offshore wind power) installed in the world in 2021 will be about three times that of 2020. The engine that plays the role of this is China. In terms of new (offshore wind power installed capacity) in 2021, China alone accounts for about 80% of the world. The development momentum of China's offshore wind power is unabated, and it is changing the map of the world's wind power equipment manufacturers.

The rapid expansion of the Chinese market is particularly striking. In 2021, the new grid-connected capacity of offshore wind power across the country will be 16.9 million kilowatts, a year-on-year increase of more than four times. In the face of China's rapid growth, Europe, which has developed offshore wind power, is also eclipsed. There are two main reasons for the rapid growth of the Chinese market:

One is the relevant fixed-price procurement system. According to a notice issued by the authorities in 2019, for offshore wind power projects approved before the end of 2018, if they are not fully connected to the grid by the end of 2021, the guide price for the year of grid connection will be implemented, and the relevant price is gradually lowered. In order to sell electricity at a higher price as much as possible, relevant companies have stepped up their investment in offshore wind power construction.

The second reason is the active intervention of the government. Wang Jiayang, an expert at the Japan Renewable Energy Foundation, said that in China, local authorities can choose the sea area and power generation company to develop and report to the central government for approval. To make renewable energy more of a basis for economic growth, provinces are racing to develop wind power and effectively use local companies to build supply networks.

In the context of the rapidly expanding market, the presence of Chinese wind power equipment manufacturers is also increasing. Bloomberg New Energy Finance has ranked manufacturers by 2021 offshore wind capacity, and the results show that Chinese companies take the top four spots. Japan's offshore wind power market has not yet officially launched. But even in Japan, where there is only a potential market, there is a trend of using Chinese wind power equipment. VENTI JAPAN, a wind power company based in Akita City, Japan, will explore the use of Chinese-made equipment in a project off the coast of Toyama Prefecture. Compared with European and American products, the size of equipment manufactured by Chinese companies is more suitable, which is the decisive factor.

Supported by huge domestic demand, Chinese companies have actively invested in mass production, accumulating technology and performance. Just as solar panels have swept the global market in a similar fashion, Chinese (wind-power equipment manufacturing) companies may also move away from thriving mainly at home and keep pace with European companies in overseas markets.

The global offshore wind market is expected to continue its steady expansion in 2022. The growth momentum of the Chinese market may slow down, but it will continue to play a pulling role. Affected by the soaring energy prices and other factors, the cost of wind equipment made in Europe has risen, and the price competitiveness of Chinese companies that can supply a large amount of raw materials and fuels by themselves will be relatively enhanced.Editor/XuNing

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