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 performed strongly. This positive momentum suggests a bright future for the sector. The National Energy Administration recently announced the fourth batch of wind power project plans, with a total approved capacity of 27.6 million kilowatts—far exceeding expectations and signaling strong government support for renewable energy development.

According to Jinfeng Science and Technology, wind turbines installed between 2008 and 2009 had short warranty periods, while those from 2009 to 2010 came with 3 to 5 years of coverage. As a result, starting in 2014, more turbines will reach the end of their warranty periods, creating significant demand for after-sales service and maintenance. These services require specialized companies, and major players in the wind power industry are already positioning themselves to capitalize on this growing market. With stable cash flows and supportive policies, the importance of the operation and maintenance segment is becoming more evident. Leading wind power firms are now setting up dedicated subsidiaries to handle these operations efficiently.

Lao Wang, a market leader, 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 operation and maintenance market potentially reaching 100 billion yuan. He believes that this sector will not become commoditized, as experience and time are key factors in successful maintenance. Internal restructuring among leading wind power companies is nearly complete, with more rational business divisions. As a result, operation and maintenance is being managed by specialized units, ensuring higher efficiency and quality.

With faster project development and expanding wind farm construction, the demand for wind power equipment is expected to rise, boosting revenue for manufacturers. At the same time, major wind power companies are strengthening their industrial chains, bringing the upstream, midstream, and downstream sectors closer together. This integration enhances the overall value of planning, procurement, construction, and operation of wind power projects.

Observer Yao highlights that the second batch of wind power projects totaled 27.6 million kilowatts, far surpassing industry forecasts and sending a clear signal that the government remains committed to supporting wind power growth. According to preliminary data from the China Wind Energy Association, China added 16.1 million kilowatts of new wind power capacity in 2013—an increase of 24% compared to 2012. Cumulative installed capacity has now surpassed 90 million kilowatts.

With continued improvements in grid connection and UHV (Ultra High Voltage) transmission, the likelihood of meeting 2014 wind power installation targets is high. The industry's recovery is looking promising. 2014 is expected to be a pivotal year for energy and power sector reforms, with many long-standing challenges likely to be addressed. Renewable sectors like wind and solar are set for even greater opportunities in the coming years.