China’s ‘recovering’ wind industry stands to lose 2GW of power generation in 2020

Research states that halted production along with supply and logistics issues could lead to order delays

The Covid-19 pandemic has caused an economic slowdown of China’s wind power industry.

According to a recent report by GlobalData, the renewable energy sector could see a reduction of 2GW in installations in 2020.

Somik Das, Senior Power Analyst at GlobalData, said: “China’s annual installation was expected to be around 24GW in 2020 and the outbreak is likely to impact installations equivalent to a massive 2GW – bringing down the installation to 22GW in 2020. A similar impact is expected for the supply of raw materials and components to orders outside China.”

This drop in installation capacity is attributed to a halt in manufacturing and engineering, procurement and construction services.

China contributes to more than 35% of global installations. However, facilities are yet to operate at full capacity with quarantine still in force.

Das added: “There has been a significant drop in the number of cases in Wuhan, Hubei, indicating that China is crawling its way out of the pandemic. However, with the prevailing situation still critical, it is not clear by when the situation will stabilise.

“Considering the prevailing conditions, China is expected to extend the onshore wind feed-in-tariff deadline, which otherwise was supposed to expire on December 31, 2020.”

The report predicts that China’s wind sector might register higher installations in the second quarter of the fiscal year 2020 to capitalise on the delayed feed-in-tariff deadline and to make up for the losses.

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