Looking forward to the recovery of the wind power industry

Recently, as the wind power industry shows signs of recovery, Taisheng Wind Power has reached new heights, and stocks like Goldwind Technologies and Tianshun Wind Power have also seen strong performance. The market outlook is promising, with the National Energy Administration announcing the fourth batch of wind power project plans, setting a total installed capacity of 27.6 million kilowatts. This move signals a clear commitment from the government to support the growth of renewable energy in China.

According to Jinfeng Science and Technology, wind turbines installed between 2008 and 2009 had relatively short warranty periods. From 2009 to 2010, the warranty period extended to 3–5 years. As a result, starting in 2014, more wind turbines will reach the end of their warranty periods, creating a growing demand for after-sales service and maintenance. This sector requires specialized companies to manage, and major wind power players are already positioning themselves to capitalize on this emerging opportunity. With stable cash flow and supportive policies, the importance of operation and maintenance is becoming more prominent. Many wind power firms are now establishing dedicated subsidiaries to handle these services efficiently.

Market leader Lao Wang points out that China currently holds the world’s largest wind power capacity. By 2020, it is expected to reach 200 million kilowatts, with the future operation and maintenance market potentially reaching 100 billion yuan. This sector is not expected to become saturated, as experience and time play a crucial role in providing high-quality maintenance. Major wind power companies have already optimized their internal operations, making their business structures more efficient. As they expand, the demand for wind power equipment is likely to increase, leading to improved revenues for manufacturers.

On the other hand, the industry is moving toward deeper integration along the supply chain, bringing the upstream, midstream, and downstream sectors closer together. This collaboration enhances the overall efficiency of planning, procurement, construction, and operation of wind power projects. Observer Yao notes that the second batch of wind power projects totals 27.6 million kilowatts—far exceeding expectations and sending a strong signal that the government remains committed to supporting wind energy development. Recent data from the China Wind Energy Association shows that in 2013, China added 16.1 million kilowatts of new wind power capacity, a 24% increase compared to 2012. Cumulative capacity has now surpassed 90 million kilowatts.

With ongoing improvements in grid connectivity and UHV (Ultra High Voltage) transmission, the chances of meeting 2014's wind power installation targets are increasing. The wind power industry is showing strong signs of recovery, and 2014 is expected to be a pivotal year for energy reform. Many long-standing challenges in the sector are likely to be addressed, opening up more opportunities for wind power and other renewable energy sources in the coming years.