China’s biggest wind companies squeeze rivals out of record boom

CHINA’S top three wind turbine makers consolidated their hold on the nation’s domestic market last year, squeezing out local and foreign rivals as installations surged to a record.

Goldwind Science & Technology, Envision Energy and Windey Energy Technology Group accounted for more than half of the turbines installed in China in 2023, BloombergNEF (BNEF) said in a report released on Monday (Feb 19). 

Wind additions in China jumped 58 per cent to 77 gigawatts last year, part of a wider boom in renewable energy installations that included almost 217 gigawatts of new solar power. The end of pandemic-era curbs and a push to deliver President Xi Jinping’s strategy to add clean energy in deserts and interior regions helped to drive the increase. 

China has more than 12 domestic turbine makers, meaning there’s little opportunity for foreign suppliers, BNEF said in the report. Vestas Wind Systems is the only overseas wind company to have installed turbines in China in the past two years.

Though installations are rising, local wind companies are contending with weaker profits as intensifying competition pushes prices lower. Average onshore turbine prices hit a record low in the second half of last year, and manufacturers’ profitability is likely to remain challenged in 2024, according to BNEF. BLOOMBERG