Ferric chloride sharply shrinks profit margins

In a recent report from the Beijing National Energy Administration, it was revealed that large-scale wind power bases in the Hexi Corridor of Gansu Province, with capacities ranging from one million to ten million kilowatts, are now under construction. Similarly, wind farms on the Inner Mongolia grasslands have already reached capacities exceeding 100,000 kilowatts. However, as the wind power sector expands rapidly, challenges such as uncontrolled growth, inefficiency, and limited local manufacturing capabilities have begun to surface. According to statistical analysis, achieving 70% localization of wind turbines could cut turbine costs by 15%. Under the same conditions, wind power generation costs could drop to 0.375 yuan per kWh. If full domestic production is realized, the cost reduction could reach 30%, bringing the cost of wind power down to approximately 0.332 yuan per kWh. Experts emphasize that the government must increase investment in research and development to enhance both technological innovation and localization in China’s wind power industry. This effort is not only crucial for lowering generation costs but also for building a strong domestic wind turbine manufacturing sector and boosting international competitiveness. According to the Global Wind Energy Council (GWEC) in 2007, China added 3,449 MW of new wind capacity, accounting for 17.2% of the global market, placing it third worldwide. Cumulative installed capacity reached 6,050 MW, moving up one position from 2006 and securing fifth place globally. Earlier this year, officials from the National Energy Administration announced plans to expand domestic wind power equipment manufacturing and develop policies to support the industry. On August 19, the Ministry of Finance issued the Interim Measures for the Administration of Special Funds for the Industrialization of Wind Power Equipment. The "Measures" stipulate that the central government will provide a subsidy of 600 yuan per kW for the first 50 wind turbine units produced by qualifying manufacturers. Half of the subsidy goes to machine manufacturers, and the other half to key component producers, with a focus on strengthening weak links in critical parts. The funds are primarily used for R&D of new products. Additionally, the technical criteria specify that supported wind turbines must have a standalone capacity of more than 1.5 MW. A representative from the China Wind Energy Association noted that these initiatives will help accelerate the localization of wind power equipment, especially core technologies, amid China's nationwide push for renewable energy expansion. Under the "Measures," industrialization funds are designated for expenses related to the development of new wind power equipment. Eligible recipients include Chinese companies and foreign-invested enterprises engaged in the production of wind power equipment, including complete machines, blades, gearboxes, generators, converters, and bearings. Furthermore, the Ministry of Finance has stated that it will adopt a “subsidy for awards” approach to support the industrialization of wind power equipment. This strategy targets all market participants, emphasizes practical results, and prioritizes timely R&D efforts while minimizing bureaucratic interventions. It aims to ensure policy transparency, openness, and the efficient mobilization of resources and enthusiasm across sectors, ultimately helping outstanding companies rise to prominence.

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