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Chinese government strengthens support for localising production of wind power equipment

China's State Economic and Trade Commission (SETC) has strengthened its support for localising the production of wind power equipment. Using money from a treasury bond issue, the SETC has sponsored four 80 MW wind projects. As a condition for its support, the government set fixed "production localisation" rates for wind power equipment ordered by the project developers. For a typical wind power project, 70% of total investment goes to equipment procurement. SETC regards localising production as the key to cost reduction -- a crucial element for the future of the country's wind power development.

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