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Approval for 4th batch of wind projects
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China’s energy watchdog has approved the construction of a fourth-batch of wind power projects totaling 27.6 gigawatts by next year.
The projects were unveiled by the National Energy Administration recently under the 12th Five-Year (2011-2015) Plan, and the 27.6GW surpassed market talk of 20GW.
There will be a total of 107GW of NEA-approved wind projects for the five years, indicating that China is likely to exceed its 2015 wind target by 10 percent, Deutsche Bank estimated.
“It also sends a strong signal that the central government is highly supportive of the wind power industry,” the German bank said in a note.
About 80 percent of the new projects approved are located in areas with strong grid networks. A further 18 percent are in Gansu, Hebei and Xinjiang, which face grid curbs but they should be solved over the next two years on the commencement of several ultra-high-voltage transmission lines.
The sites of the new projects suggests they “unlikely will worsen” the curbs on the grid and China’s average wind utilization rate should still go up, the bank said.
China has the world’s biggest installed wind capacity but many turbines sit idle as renewable energy loses money for grid firms and grid construction has lagged capacity expansion.
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