Overcapacity in Wind Power Industry Offshore Wind Power is Blue Ocean in the Future

The wind power industry has always been regarded as a new area with huge development potential. Wind power companies and wind power equipment manufacturing companies have already launched in many places. Wind power resources are rich in wind power companies, while wind power companies are distributed wind power equipment companies.

Nowadays, domestic wind power equipment manufacturers are paying the price for their “flocking”. Since the second half of last year, the pace of development of domestic wind power equipment manufacturing companies has gradually slowed down. Some analysts said that the overcapacity rate of the domestic wind power industry is above 50%. Large enterprises have capital and technological advantages and are affected little, but SMEs face the problem of survival. Actively deploying offshore wind power and entering overseas markets has become an important strategy for wind power equipment manufacturers.

“At present, the overcapacity rate in the domestic wind power industry is estimated to be over 50%.” Li Ling, an analyst at ChinaVenture, a financial information and information service provider, bluntly stated that in the past few years, the wind power industry has experienced a round of “madness” driven by national policy support and high profits. Wind power installed capacity doubled for five consecutive years, and China surpassed the United States to become the world's largest wind power installation country. Firms try to occupy the market through “barbaric growth” competition and eventually lead to excess production capacity.

While facing the problem of overcapacity, the industry is still full of confidence in the future of the wind power industry.

The chief of the strategy department of Sinovel Wind Power (Group) Co., Ltd. told the reporter that with the improvement of the economic situation at home and abroad and the improvement of wind power infrastructure such as smart grids, it is expected that in the next 2-3 years, difficulties such as grid connection and other unfavorable factors Can eliminate, the industry will usher in a new round of rapid development. “The next step in wind power grid connection will be further reduced. Some large power plants have emission reduction tasks. By building wind farms, carbon emission quotas can be increased. Some wind farms can also issue carbon emission quotas and receive government subsidies.” Familiarity Mr. Zhang of the environmental protection industry revealed that the development of wind farms will help wind power equipment companies to absorb excess production capacity.

“At present, the market is still not saturated, but after a few years of continuous expansion, the total volume has become smaller. For many multinational wind power companies, the Chinese market still occupies the most important position in its global strategy.” For wind power equipment In the future development, Li Junfeng, deputy director of the Energy Research Institute of the National Development and Reform Commission, also has confidence.

Li Ling believes that the development of offshore wind power and the expansion of overseas markets will become a trend in the future when traditional onshore wind power is cold and the domestic market is nearly saturated.

Dongying’s wind energy resources and “blue and yellow” strategic policies have attracted a number of wind power companies to settle down, and wind power equipment companies have followed suit. After Sinopec, Huaneng and other companies built wind farms in Dongying New Household, Xianhe, and Hekou Street, Huarui Wind Power also aimed at Dongying, investing 1.5 billion yuan to build Shandong Huarui.

Han Junliang, Chairman of Sinovel Wind also made it clear that “Two Seas”—offshore wind power and overseas expansion are the growth points for the future development of Sinovel Wind Power.

The research report recently released by Founder Securities also stated that during the 12th Five-Year Plan period, offshore wind power will become a new battlefield for industry competition.