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Mobile WebSiteChina recently announced that moving from a feed-in tariff plan to a competitive auction mechanism will help the country exceed its national cumulative wind power target of 210 gigawatts (GW) by 2020, with an average annual installed capacity of more than 20 gigawatts over the next 10 years.
China's National Energy Administration (NEA) announced earlier this year that it is shifting from a feed-in tariff plan to a competitive auction mechanism for wind power projects, indicating a shift in industry competitiveness. While some land and offshore projects are still eligible for FiT, most projects starting in 2019 need to be obtained at auction.
A new report from the consulting firm on China's wind power forecast predicts that once auctions are held in each region, “it will bring new growth to China's wind power”. In addition, MAKE predicts that the annual installed capacity of grid-connected wind power will exceed the installed capacity in 2018 and will remain in this state for the next ten years. This progress is not driven by the upcoming auction, but by the country's existing project channels. Pushed. The earliest projects acquired through the auction are expected to begin construction in the second half of 2019.
This is an important step for the National Energy Administration to ensure that wind energy will reach grid parity in 2020. Therefore, it has reduced on-grid tariff subsidies for onshore wind power for three consecutive years (2014-2016), and most analysts predict that China will continue to reduce this. Subsidies, the country took a tougher approach and turned to a competitive auction mechanism, which surprised the world.
In addition, China will exceed its national cumulative wind power installed capacity of 210 GW, which is part of the national “13th Five-Year Plan” wind power plan, which will install an average annual production capacity of more than 20 GW over the 10-year forecast period, at least in part. It is driven by the development of offshore wind power and renewable energy.
However, China's wind power industry will continue to experience severe power cuts, especially in the northern region. However, long-term benefits such as abundant wind resources and good construction conditions across the country will overcome these concerns and continue to attract developers and investors to commit to expand wind power projects.
