China is likely to become the top wind market in the world within three to five years, according to Danish turbine manufacturer Vestas. If the country introduced reforms to its renewables policy, specifically including a revamp of its pricing system for wind with an end to the current bidding system for larger projects and a switch to fixed priced tariffs with long term power purchase agreements, faster growth would result. The message as delivered by Vestas at the opening of its latest factory in China. "It is an issue we are pushing whenever we have the chance of discussing it with authorities," says the company's Lars Andersen. "We think one way to create a very sustainable industry is to have a feed-in tariff system." Chen Deming of the National Development and Reform Commission, which oversees regulation of the wind industry, says the country is not ready to introduce such a tariff, which could hinder growth of China's domestic manufacturing industry. In developing its own wind power equipment, China will ensure cheaper clean energy, he says. Chen also says the government is not prepared to loosen pricing control of the traditional power sector to prevent a free-for-all harming the development of wind power and other renewables. "We cannot completely free pricing now, he said. "It would lead to more coal power generation projects."
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Senior Renewable Energy Analyst (WindGEMINI Product Lead) DNV GL Bristol (City Centre), City of Bristol