Wind power industry has received cold treatment

The wind power industry, once seen as a promising clean energy solution, is now facing significant challenges despite its rapid growth. According to the “Global Wind Power Development Outlook 2012” report by Greenpeace and the Global Wind Energy Council, it was predicted that by 2020, wind energy could supply 12% of global electricity demand and reduce CO₂ emissions by 15 billion tons annually. By 2030, this figure was expected to rise to over 20%. In China, the "12th Five-Year Plan" aimed for 100 million kilowatts of installed wind capacity by 2015, generating 190 billion kWh of electricity—accounting for more than 3% of total power generation. However, concerns have emerged about whether these targets are being met in practice. Shi Pengfei, deputy director of the China Wind Energy Committee, raised a critical question: “Is this 190 billion kWh of electricity actually being delivered?” After years of fast development, China’s wind power sector is now encountering bottlenecks, including grid limitations and policy delays. These issues have led to a growing problem of wind curtailment—where excess power is simply discarded due to an inability to transmit or consume it. According to data from the State Electricity Regulatory Commission, wind farms in northern China generated 12.3 billion kWh in 2011, but a staggering 16% of that power was curtailed. The situation has not improved much since then, with curtailment rates reaching around 15% in the first half of recent years. Experts like Hou Yuxi of Goldwind Technology suggest that this issue stems from rapid early development without proper planning for grid integration and power consumption. “The root cause is the mismatch between wind power growth and existing infrastructure,” said Shi Pengfei. “We didn’t anticipate such rapid expansion, and now we need better coordination across the entire system.” Hou added that while the power grid isn’t solely to blame, the national system and local policies also play a major role. Long-distance transmission and unstable grid management are key obstacles. Despite these challenges, there is hope for improvement. Hou believes that with structural adjustments and stronger collaboration among grid companies, power generators, and manufacturers, wind curtailment could be significantly reduced within three to five years. He emphasized the need for better grid planning, increased transmission networks, and localized power usage to address the issue. Another major concern is the delayed distribution of subsidies. As of November 2012, subsidies for 2010 had still not been paid out, placing a heavy financial burden on developers. Dai Dongdong of Dongfang Electric noted that investors are becoming cautious, saying, “If subsidies aren’t distributed promptly, many projects may struggle to survive.” This delay affects not only power companies but also manufacturers who rely on timely payments. To ease the pressure, some experts suggest shifting from user-based charging to tax-based funding for subsidies. While this approach is still under discussion, it could provide more stable and timely support for the industry. Tax exemptions are also seen as a positive step, helping companies manage their cash flow and reduce financial strain. As the wind power sector continues to grow, stability in policy and long-term planning will be crucial. Sifan Taiske from Greenpeace highlighted the importance of clear, consistent policies to attract investment and ensure sustainable development. With the right support, the wind industry has the potential to create millions of jobs and become a cornerstone of the global energy transition.

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