China Installs 20 GW Of Wind Power In 2011 But Faces Overcapacity Issues

Posted by NAW Staff on January 09, 2012 No Comments
Categories : New & Noteworthy

China's wind energy industry constructed another 20 GW of new capacity in 2011, bringing its total wind power capacity to approximately 65 GW, a new analysis from global investment banking firm Jefferies & Co. Inc. shows.

However, this robust growth belies an industry facing overcapacity, Jefferies says, noting that China still has around 20 GW of constructed but unconnected wind capacity.

As a result, equipment manufacturers will face headwinds, as demand will be under pressure as China rationalizes its wind power build-out.

China now has a backlog of about 20 GW of wind power capacity. In other words, China could cease building new wind farms in 2012 and still fail to connect all its wind power capacity by year-end, according to Jefferies.

Therefore, the industry will need to rethink its development and expansion plans, especially because grid companies may only connect 15 GW to 16 GW of new wind power capacity this year, the firm says.

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