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/* Country-wise Market Distribution */
To view the '''[[Country-wise Installed Wind Power Capacity]]''' (MW) 2002-2010 (Source: World Wind Energy Association), '''[http://dolcera.com/wiki/index.php?title=Country-wise_Installed_Wind_Power_Capacity click here]'''
==Country Profiles==
===China===
According to the third National Wind Energy Resources
Census, China’s total exploitable capacity for both land-based
and offshore wind energy is around 700-1,200 GW.
Compared to the other leading global wind power markets,
China’s wind resources are closest to that of the United
States, and greatly exceed resources in India, Germany or
Spain.
<br>'''Market Developments in 2010'''
<br>Due to varied wind resources across China and differing
technical and economic conditions, wind power development
to date has been focused on a few regions and provinces,
including: Inner Mongolia, the Northwest, the Northeast,
Hebei Province, the Southeast coast and offshore islands.
<br>China’s wind market doubled every year between 2006 and
2009 in terms of total installed capacity, and it has been the
largest annual market since 2009. In 2010, China overtook the United States as the country with the most installed wind
energy capacity by adding 16,500 MW* over the course of
the year, a 64% increase on 2009 in terms of cumulative
capacity, reaching 42.3 GW in total.
<br>According to Bloomberg New Energy Finance, the growth in
installed capacity was driven by a record level of investment
in wind power in China, which exceeded USD 20 billion in
2009. In the third quarter of 2010, China’s investment in new
wind power projects accounted for half of the global total.
In addition, the Chinese government report “Development
Planning of New Energy Industry” calculated that the
cumulative installed capacity of China’s wind power will
reach 200 GW by 2020 and generate 440 TWh of electricity
annually, creating more than RMB 250 billion (EUR 28 bn /
USD 38 bn) in revenue.
<br>'''Chinese Wind Power Sector'''
<br>2010 was also an important year for Chinese wind turbine
manufacturers, as four companies, including Sinovel,
Goldwind, UnitedPower and Dongfang Electric, are part of
the world's top ten largest wind turbine manufacturers, and
are beginning to expand into overseas markets.
Driven by global development trends, Chinese firms,
including Sinovel, Goldwind, XEMC, Shanghai Electric Group
and Mingyang, have entered the competition to manufacture
wind turbines of 5 MW or more.
<br>China’s wind power generation market is mainly shared
among the ’Big Five’ power producers and several other
major state-owned enterprises. These firms account for more
than 80% of the total wind power market. The largest wind
power operators, Guodian (Longyuan Electric Group), Datang
and Huaneng expanded their capacity by 1-2 GW each during
the year, while Huadian, Guohua and China Guangdong
Nuclear Power are following close behind. Most of the local
state-owned non-energy enterprises, as well as foreignowned
and private enterprises have retreated from the
market. Access to finance is generally not a problem for wind
power projects.
<br>'''The Renewable Energy Law and the Chinese Feed In Tariff'''
<br>The breathtaking growth of the Chinese wind energy industry
has been driven primarily by national renewable energy
policies. The first Renewable Energy Law entered into force in
2006, and gave huge momentum to the development of
renewable energy. In 2007, the first implementation rules for
the law emerged, giving further impetus to wind energy
development. In addition, the “Medium and Long-term
Development Plan for Renewable Energy in China” from 2007
set out the government’s long term commitment and put
forward national renewable energy targets, policies and
measures for implementation, including a mandatory market
share of 1% of non-hydro renewable energy in the total
electricity mix by 2010 and 3% by 2020.
<br>In 2009, the Renewable Energy Law was amended to
introduce a requirement for grid operators to purchase a
certain fixed amount of renewable energy. The amendment
also requires grid companies to absorb the full amount of
renewable power produced, also giving them the option of
applying for subsidies from a new “Renewable Energy Fund”
to cover the extra cost related to integrating renewable
power if necessary.
<br>The breathtaking growth of the Chinese wind energy industry
has been driven primarily by national renewable energy
policies. The first Renewable Energy Law entered into force in
2006, and gave huge momentum to the development of
renewable energy. In 2007, the first implementation rules for
the law emerged, giving further impetus to wind energy
development. In addition, the “Medium and Long-term
Development Plan for Renewable Energy in China” from 2007
set out the government’s long term commitment and put
forward national renewable energy targets, policies and
measures for implementation, including a mandatory market
share of 1% of non-hydro renewable energy in the total
electricity mix by 2010 and 3% by 2020.
In 2009, the Renewable Energy Law was amended to
introduce a requirement for grid operators to purchase a
certain fixed amount of renewable energy. The amendment
also requires grid companies to absorb the full amount of
renewable power produced, also giving them the option of
applying for subsidies from a new “Renewable Energy Fund”
to cover the extra cost related to integrating renewable
power if necessary.
<br>'''Grid Connection Problem'''
<br>The rapid development of wind power in China has put
unprecedented strain on the country’s electricity grid
infrastructure. This has become the biggest problem for the
future development of wind power in the country, as some
projects have to wait for several months before being
connected to the national grid.
<br>There are reports that a large share of China’s wind power
capacity is not grid connected, but this is based on a
fundamental misunderstanding, which has its source in the
methodology used for calculating installed capacity. The
Chinese Federation of Power Generation, which provides
China’s energy statistics, only counts wind farms as operational from the moment that the last turbine of a
project has become grid-connected. However, in reality, most
of the installed wind turbines of a project are connected to
the grid and generating power much earlier. This explains the
much reported “gap” between installation and grid
connection which is often reported from China. In other
markets, it is common practice to include all turbines that are
grid connected, whether or not they constitute a completed
wind farm.
<br>Due to a lack of incentives, Chinese grid companies have
been reluctant to accept large amounts of wind power into
their systems. However, they have recently reached an
agreement to connect 80 GW of wind power by 2015 and
150 GW by 2020. According to figures by the State Grid, at
the end of 2010, 40 billion RMB (EUR 4.5 bn / USD 6.1 bn)
had been invested to facilitate wind power integration into
the national power grid.
<br>'''Outlook 2011 & Beyond'''
<br>Despite its rapid and seemingly unhampered expansion, the
Chinese wind power sector continues to face significant
challenges, including issues surrounding grid access and
integration, reliability of turbines and a coherent strategy for
developing China’s offshore wind resource. These issues will
be prominent during discussions around the twelfth Five-Year
Plan, which will be passed in March 2011. According to the
draft plan, this is expected to reflect the Chinese
government’s continuous and reinforced commitment to
wind power development, with national wind energy targets
of 90 GW for 2015 and 200 GW for 2020.
===India===
India had a record year for new wind energy installations in
2010, with 2,139 MW of new capacity added to reach a total
of 13,065 MW at the end of the year. Renewable energy is
now 10.9% of installed capacity, contributing about 4.13% to
the electricity generation mix, and wind power accounts for
70% of this installed capacity. Currently the wind power
potential estimated by the Centre for Wind Energy
Technology (C-WET) is 49.1 GW, but the estimations of
various industry associations and the World Institute for
Sustainable Energy (WISE) and wind power producers are
more optimistic, citing a potential in the range of 65-
100 GW.
<br>Historically, actual power generation capacity additions in
the conventional power sector in India been fallen
significantly short of government targets. For the renewable
energy sector, the opposite has been true, and it has shown a
tendency towards exceeding the targets set in the five-year
plans. This is largely due to the booming wind power sector.
Given that renewable energy was about 2% of the energy
mix in 1995, this growth is a significant achievement even in
comparison with most developed countries. This was mainly
spurred by a range of regulatory and policy support measures
for renewable energy development that were introduced
through legislation and market based instruments over the
past decade.
<br>The states with highest wind power concentration are Tamil
Nadu, Maharashtra, Gujarat, Rajasthan, Karnataka, Madhya
Pradesh and Andhra Pradesh.
<br>'''Main market developments in 2010'''
<br>Today the Indian market is emerging as one of the major
manufacturing hubs for wind turbines in Asia. Currently,
seventeen manufacturers have an annual production capacity
of 7,500 MW. According to the WISE, the annual wind turbine
manufacturing capacity in India is likely to exceed
17,000 MW by 2013.
<br>The Indian market is expanding with the leading wind
companies like Suzlon, Vestas, Enercon, RRB Energy and GE
now being joined by new entrants like Gamesa, Siemens, and
WinWinD, all vying for a greater market share. Suzlon, however,
is still the market leader with a market share of over 50%.
<br>The Indian wind industry has not been significantly affected
by the financial and economic crises. Even in the face of a
global slowdown, the Indian annual wind power market has
grown by almost 68%. However, it needs to be pointed out
that the strong growth in 2010 might have been stimulated
by developers taking advantage of the accelerated
depreciation before this option is phased out.
<br>'''Policy support for wind power in India'''
<br>Since the 2003 Electricity Act, the wind sector has registered
a compound annual growth rate of about 29.5%. The central
government policies have provided policy support for both
foreign and local investment in renewable energy
technologies. The key financial incentives for spurring wind
power development have been the possibility to claim
accelerated depreciation of up to 80% of the project cost
within the first year of operation and the income tax holiday
on all earnings generated from the project for ten
consecutive assessment years.
<br>In December 2009 the Ministry for New and Renewable
Energy (MNRE) approved a Generation Based Incentive (GBI)
scheme for wind power projects, which stipulated that an
incentive tariff of Rs 0.50/kWh (EUR 0.8 cents/USD 1.1 cents)
would be given to eligible projects for a (maximum) period of
ten years. This scheme is currently valid for wind farms
installed before 31 March 2012. However, the GBI and the
accelerated depreciation are mutually exclusive and a
developer can only claim concessions under one of them for the same project. Although the projected financial outlay for
this scheme under the 11th Plan Period (2007-2012) is
Rs 3.8 billion (EUR 61 million/USD 84 million), the uptake of
the GBI has been slow due to the fact that at the current rate
it is still less financially attractive than accelerated
depreciation.
<br>Currently 18 of the 25 State Electricity Regulatory
Commissions (SERCs) have issued feed-in tariffs for wind
power. Around 17 SERCs have also specified state-wide
Renewable Purchase Obligations (RPOs). Both of these
measures have helped to create long-term policy certainty
and investor confidence, which have had a positive impact on
the wind energy capacity additions in those states.
<br>'''Support framework for wind energy'''
<br>There has been a noticeable shift in Indian politics since the
adoption of the Electricity Act in 2003 towards supporting
research, development and innovation in the country’s
renewable energy sector. In 2010, the Indian government
clearly recognised the role that renewable energy can play in
reducing dependence on fossil fuels and combating climate
change, and introduced a tax (“cess”) of Rs.50 (~USD1.0) on
every metric ton of coal produced or imported into India. This
money will be used to contribute to a new Clean Energy Fund.
In addition, the MNRE announced its intention to establish a
Green Bank by leveraging the Rs 25 billion (EUR 400 million /
USD 500 million) expected to be raised through the national
Clean Energy Fund annually. The new entity would likely work
in tandem with the Indian Renewable Energy Development
Agency (IREDA), a government-owned non-banking financial
company.
<br>In keeping with the recommendations of the National Action
Plan on Climate Change (NAPCC) the MNRE and the Central
Electricity Regulatory Commission (CERC) have evolved a
framework for implementation of the Renewable Energy
Certificate (REC) Mechanism for India.1 This is likely to give
renewable energy development a further push in the coming
years, as it will enable those states that do not meet their
RPOs through renewable energy installations to fill the gap
through purchasing RECs.
<br>'''Obstacles for wind energy development'''
<br>With the introduction of the Direct Tax Code2, the
government aims to modernize existing income tax laws.
Starting from the fiscal year 2011-12, accelerated
depreciation, the key instrument for boosting wind power
development in India, may no longer be available.
Another limitation to wind power growth in India is
inadequate grid infrastructure, especially in those states with
significant wind potential, which are already struggling to
integrate the large amounts of wind electricity produced. As
a result, the distribution utilities are hesitant to accept more
wind power. This makes it imperative for CERC and SERCs to
take immediate steps toward improved power evacuation
system planning and providing better interface between
regional grids. The announcement of India’s Smart Grid Task
Force by the Ministry of Power is a welcome first step in this
direction.
==Market Share Analysis==
