, China

China closes in on Europe for offshore wind dominance

Guandong province alone targets 12GW offshore wind by 2020.

Even though China is a relative new-comer in the offshore wind power segment, the rapidly falling offshore wind power costs in Western Europe and the rising competitiveness of the technology in markets such as the United States and Taiwan is expected to push China to substantially boost offshore wind power capacity over the coming decade, says Fitch Solutions.

This trend is forecast to also be the result of efforts to decarbonise power supplies closer to coastal consumption hubs and boost Chinese technological expertise, to eventually enable the export of technology.

Also readChina's wind capacity to double to 421GW by 2028

China’s sighted leadership in the offshore wind segment is specifically seen to manifest in the provinces of Guangdong and Jiangsu, where offshore wind capacity deployments are most accelerated. In particular, the Guandong provincial offshore wind development plan has targeted 2GW of offshore wind capacity installations and a further 12GW is set to be constructed by the end of 2020.

Since 2015, China's offshore wind capacity has seen its total installed capacity grow from 9% as of end- 2015, to more than 25% by 2018. Fitch forecasts that such trend will further continue eventually launch China’s offshore wind in the global scene.

Whilst the foresight in China’s position is increasingly positive, Fitch sees potential roadblocks such as cost reductions for offshore wind power and policy transitions in the segment.

Trimming of costs for offshore wind power over the coming two years will be a key pre-occupation of Chinese offshore wind developers amidst the broader phase-out of renewables subsidies in the market. After years of attractive feed-in-tariffs for onshore wind and photovoltaic solar power projects, substantial renewables generation curtailment has led to a FiT payment backlog surpassing $18b, which has resulted to rising concerns over the economic sustainability of China's renewables subsidy mechanism, the report read.

This has led Beijing to transition away from the FiT scheme to zero-subsidy renewables for onshore wind and PV solar by 2021, while offshore wind projects are required to be below the old FiT rate of $133/MWh. The latter move is sighted to pose a risk to some of China's burgeoning offshore wind project pipeline, which likely will be required to cut costs beyond what was expected before this policy alteration.

China’s aspirations to stimulate offshore wind cost deflation towards becoming subsidy-free already by 2022 is expected to cement a push for the country to cut costs across the offshore wind supply chain, adopt more modern wind turbine technology, optimise operation & maintenance and target the most competitive wind sites. Chinese companies Dongfang Electric and CSIC Haizhuang have both unveiled 10MW offshore wind turbines in 2019.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Power in your inbox

Danish energy company Ørsted launches expansion in Vietnam

This comes on the back of Vietnam increasing renewable energy to 30% by 2030

South Korea launches its largest 2 GW solar capacity tender

The country is expected to allocate 4 GW of solar capacity in 2021 across two tenders.

ACWA to build largest wind power plant in Central Asia

The company will construct the 1500 MW wind power project in Uzbekistan.

India’s Tata Power contemplating $473m IPO for renewable energy business

It initially planned to seek a partner to invest in its green assets.

China’s solar capacity installation crashes by 82% QoQ in Q1 2021

But increased by 35% YoY compared to Q1 2020.

India’s JSPL sells coal-fired power business for $400m to Worldone

This move aims to reduce the company’s debt and carbon footprint by almost half.

Japan authorizes operations of three ageing nuclear reactors

This is the first time reactors older than 40 years are approved to restart.

India’s NTPC launches tender for 600MW of wind and solar projects

Developers can compete for at least 50 MW to 600 MW in 10 MW multiples.

Here’s why the last dirty fuel project in Japan was scrapped 

The country recently pledged to cut down greenhouse gas emissions by 46% before 2030.

Singapore's Sunseap eyes expansion in Japan after latest Series E funding

The company earned an undisclosed amount from several new Japanese investors.