Statistics indicate the China's turbine industry has accounted for 56 percent of the newly installed wind turbines in 2007. This is vastly different from the situation a year before, when foreign manufacturers dominated the market.

According to a UNEP report published recently, investment in the country's sustainable energy sector grew by 91 percent last year to a record high of US$10.8 billion, most of which has flowed to wind power generating units.

With this large investment, China's combined installed capacity of wind power facilities reached 6,050mw at the end of 2007, increasing from 2,670mw a year earlier.

The government has also created favorable policies to help spur the development of domestic wind power equipment and components manufacturing industry.

Under government regulations, all new wind power projects must be made up of at least 70 percent Chinese components. Wind power equipment manufacturers now enjoy a 50 percent discount on value added taxes (VAT) payable in China.

The country has also canceled its tariff-free policy on imports of wind turbines with a capacity less than 2.5mw in April 2008, which will give added impetus to the domestic production of increasingly large wind turbines.

However, some of the core components in producing wind turbines, such as bearings, still depend on imports.

Xinjiang Goldwind has announced that the localization rate of the wind turbines it will provide to the Jiuquan wind power base will reach 90.5 percent. But other followers in the market fell short of this level.

The dependence on the imports of crucial technologies and components makes wind power equipment expensive, a factor that is hindering further development of the industry in China.

Many of the largest wind turbine manufacturers have licensed technology from western companies, such AMSC Windtec, REpower, Aerodyn, Vensys and Garrad Hassan.

China currently ranks fifth in the world in terms of wind power installed capacity. The country plans to increase its wind power capacity of 10,000mw by 2015 and to 30,000mw by 2020.

(China Daily August 18, 2008)