China Wind Power Case Study

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The Chinese electric industry was centrally planned, tightly controlled and state-owned. Due to shortages in 1986, China began reforming the electricity sector by liberalising it and introducing competitive wholesale markets, removing price regulation, privatising utilities, unbundling generation and distribution, and establishing competitive retail markets.

Prior to 2000, trade in the wind energy sector was completely guided and mandated by the government through demonstration projects cite{IEEEhowto:China_mkt_outlook}. The grid operators were required to purchase any wind energy that was produced. After some initial experiences, the government initiated concession projects where wind developers were allowed to bid on the price of wind energy that was being sold. After the Renewable Energy Law was enacted, four groups of FIT 's were adopted and the grid operators are required to purchase wind energy unless technical considerations limit their use. According to cite{IEEEhowto:china_policy_mkt}, China has been cautious by not completely surrendering to measures that would result in a more advanced privatisation of the industry. China follows a policy of a dual electricity system which means that the state plans at the core, but there is a decentralised generation system at the periphery. The Ministry of Electric Power revises its central plans every five years. Despite these reviews the chinese government still manages information between departments poorly. subsection{Future of Wind Power in China} The growth of energy demand and the urgency of dealing with environmental damage will continue to drive the development of wind power in China.
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According to the Wind Energy Development Roadmap 2050 cite{IEEEhowto:TechRoadMap_China}, the total installed capacity of wind power in China is forecast to grow to 200 GW by 2020, 400 GW by 2030 and 500 GW by 2050. This will result in the wind portion of the total electricity generated to increase from 10\% in 2020 to 17\% by 2050. China is the largest wind power market in the world today and if it maintains and continues to build on this trend, it will continue to be the leader in the next several decades.

Offshore wind power potential in China is large. It is estimated that potential generation can be as low as 200 GW and as high as 750 GWcite{IEEEhowto:China_stat_perspective} according to various assessments. In the near future, new wind power installation in China will still focus on onshore, but offshore installations appear to be growing faster than before. The government has set a target for 5 GW of offshore wind installation by 2015 and 30 GW by 2030 cite{IEEEhowto:Carbon_Trust_China}. China realizes the challenges associated with offshore wind and has set aside research and development funds to resolve the technical issues cite{IEEEhowto:GWEC_Mkt_Up_2013}. The huge market opportunities have attracted the interest of many foreign industry players including those from the UK, Denmark, and Germany. These countries have tested, researched and developed offshore wind the most. Their involvement can contribute to the resolution of technical challenges that China is facing through joint ventures, technology licensing, and collaborative research and
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Most workers are not trained in the wind industrycite{IEEEhowto:China_stat_challenges} but are instead taken from related industries such as hydro and thermal power. There is an opportunity to significantly improve the quality of professionals in the area by providing training in wind technology and engineering. There are some training organizations that offer these services today, however they are far from sufficient in number. While formal academic education in the wind energy area is beneficial, professional training in wind energy technology and engineering is more important and is desirable in training skilled workers in the near

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