The impact of international forces on the Chinese wind power industry

Zhen-yu Zhao, Guang-zheng Sun, Jian Zuo and George Zillante

Renewable and Sustainable Energy Reviews, 2013, vol. 24, issue C, 131-141

Abstract: The Chinese wind power industry has achieved remarkable growth in the last two decades. The total installed capacity of wind power in China has now surpassed that of the United States thereby making it the country with the largest installed wind power capacity in the world. The independent and innovative capability of Chinese wind turbine manufacturers has undergone continuous improvement and has now reached the point where the country has the capability to produce large scale wind turbines. Although the Chinese domestic policy incentive has played a significant role in the rapid development of the Chinese wind power industry; the contribution made by external international forces should not be overlooked. This research aims to establish a comprehensive model reflecting the international forces that impact on the Chinese wind power industry. This model consists of three subsystems, i.e. (1) the international cooperation subsystem, (2) the Clean Development Mechanism (CDM) subsystem and (3) the import/export subsystem. Using the model as part of the research, the findings suggest that for the international cooperation subsystem, joint research and development (R&D) and information sharing provide both the finance and the technologies for the entire Chinese wind power industry. The financing impact of CDM certainly guarantees the profitability of wind power projects; however its effect in terms of the diffusion of technical information and technical capability is weak. Similarly, the degree of dependence of Chinese wind turbine manufacturing on imports is weakening as domestic wind turbine manufacturers actively explore overseas markets. This comprehensive model helps both international and domestic wind power investors to understand the impact of international forces on the Chinese wind power industry resulting in better investment decisions and the consequential minimization of risk.

Keywords: China; Wind power industry; International cooperation; CDM; Import and export (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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DOI: 10.1016/j.rser.2013.03.055

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