Wind energy grows in China with government support and mass production: The country leads, with 60% of global wind turbine production, threatening competitiveness with lower prices

China dominates wind and solar energy, surpassing countries like the USA and Brazil. Investments and state support drive its global leadership, transforming the renewable energy landscape.

China has become the undisputed leader in solar panel manufacturing, as well as solar power and installed capacity. However, the Asian country has also stood out in other renewable energy sector: wind energy. Despite its connection to fossil fuels and coal, China managed, in the first quarter of the year, for the combination of solar and wind energy to represent a significant part of the country's total energy capacity.

The capacity under construction in China exceeds that of other countries. The Asian country has 180 GW of large-scale solar energy and 159 GW of wind energy under construction. Together, these energies would add up to 339 MW of power, compared to 40 GW in the United States or 13 MW in Brazil, which occupies third place.

Dominance in the global wind energy market

When it comes to global wind turbine production, China holds 60% of annual production and will have 65% of wind power capacity installed in 2023, according to data from the Global Wind Energy Council (GWEC). This leadership position is reflected in the presence of Chinese supplier companies, such as Goldwind, Envision, Windey and Mingyang (the first two occupying the first two positions in the ranking), which together installed 81,6 GW in 2023. In comparison, the European supplier Vestas occupies third position with 16,7 GW of installation. In the last four years, until 2023, China created 426 turbine models, surpassing other countries.

Government support boosts wind energy in China

The growth of China's wind industry is based on local subsidies and financial support. In 2009, the Chinese National Development and Reform Document (NDRD) introduced feed-in tariffs, a subsidy system consisting of a fixed fee that renewable energy producers receive for each unit of electricity they generate and sell. This started with onshore wind projects and, six years later, extended to marine wind turbines.

Although subsidies were reduced during the pandemic years by the Chinese government, provincial support was increased. This support allowed China to offer more competitive prices than the rest of the countries.

International competition and European concerns

China has managed to position itself as a leader in renewable energy, becoming a strong competitor. Concerns coming from Europe and the United States focus on Chinese government subsidies and resulting business practices. In March 2024, the European Union began an investigation to verify whether these state subsidies were used to reduce prices and gain a competitive advantage, as Chinese products are between 40% and 50% cheaper than European ones.

EU Competition Commissioner Margrethe Vestager accused China of replicating the subsidy strategy they used in solar energy. In defense, the China Chamber of Commerce in the European Union and Zhejiang Windey denied the use of unfair state subsidies, arguing that their competitiveness is based on experience and good technology.

The Asian country's strategic plan to maintain its position in the wind sector includes issuing bonds and providing additional financing. With this strategy, it is expected that its carbon emissions will begin to decrease, thus consolidating its leadership in the transition to cleaner energy sources.