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San Francisco, CA (PRWEB) October 14, 2012
Over the past five years, revenue has been growing 73.9% annually, says IBISWorld. As a clean and renewable energy source, wind power is playing an increasingly significant role in power generation, ranking fourth after thermal power, hydroelectric power and nuclear power. Revenue for the Wind Power industry in China is estimated at $10.2 billion in 2012. Wind power generation firms have been consistently increasing installed capacity over the period, and an oversupply of wind turbines is stimulating their further expansion. The national standard for on-grid wind turbines came into force in November 2011 to address the bottleneck. Even for those on-grids, however, large amounts of electric power are discarded due to the limited transmission capacity of the grid.
The top four wind power generators in China account for almost half of industry revenue in 2012. The concentration level of the industry dropped sharply after the Power Sector Reform in 2002, when the former monopoly, the National Electric Power Corporation, was split into five major state-owned power generation groups and two electric grid corporations. The five major power generation groups, China Guodian Corporation, China Datang Corporation, China Huaneng Group, Shenhua Group, and China Huadian Corporation, have access to generous government subsidies for new energy exploration and competition among them is intense.
With strong government support for alternative energy generation, the Wind Power industry in China will likely experience another five-year-period of expansion, says IBISWorld. However, growth will be limited by new government regulations requiring the approval of new wind power projects by the National Energy Bureau. In addition, projects in regions where over 20% of electricity generated by wind power is discarded due to limited transmission capacity will no longer be approved.