The wind power industry is riding the "wind" of growth: Affordable grid parity is just around the corner, driving steady industry expansion.

Recently, Fujian's first 220kV offshore booster substation "settled" at the Three Gorges Group's Fuzhou Xinghua Bay Offshore Wind Farm. The photo shows China's first SVG dynamic reactive power compensation system installed atop an offshore booster station—a facility that currently boasts the highest level of integration and is also one of the largest and heaviest single-unit offshore substations in the country.

Photo by our reporter Wang Yichen

In recent years, China's wind power industry has experienced steady growth in scale, with both technology and business models advancing steadily. Key challenges have been addressed systematically, enabling the industry to shift from rapid expansion to high-quality development. Facing the challenge of achieving grid parity, wind energy companies have responded by adopting various strategies—such as large-scale project development and technological innovation—to reduce costs and boost efficiency, gradually reducing their reliance on subsidies.

More than 100 renowned speakers and thousands of domestic and international delegates attended the event, while the exhibition space spanned over 60,000 square meters. Over 600 Chinese and foreign companies showcased their cutting-edge products, attracting an estimated audience of more than 60,000 visitors. Recently held, the 2019 Beijing International Wind Energy Conference & Exhibition (CWP 2019) once again shattered its own record as the world’s largest wind energy trade show. Within the expansive halls of Beijing’s New China International Exhibition Center, hundreds of domestic and international manufacturers—from leaders in wind turbine components like generators, gearboxes, and blade models to suppliers of critical materials such as cables, lubricants, coatings, and advanced control systems—displayed their innovative offerings. The sheer variety and sophistication of the exhibits were simply breathtaking, highlighting China’s impressive advancements in wind power technology and underscoring the nation’s growing prowess as a global leader in clean energy.

Offshore wind power sees frequent highlights

On the path to wind energy development, China has never paused. In 2018, the country’s cumulative installed wind power capacity reached 124,000 units, with a total installed capacity of 210 million kilowatts, making it the first region globally to surpass 200 million kilowatts of installed wind power capacity. By 2019, China’s wind energy sector continued to advance steadily. According to data from the National Energy Administration, during the first nine months of the year, newly grid-connected wind power capacity nationwide totaled 13.48 million kilowatts, bringing the country’s cumulative grid-connected capacity to 198 million kilowatts. Meanwhile, national wind power generation during the same period reached 289.7 billion kilowatt-hours, representing a 9% increase compared to the previous year.

"The wind power industry has achieved such impressive results primarily due to consistent and stable policies, steady growth in industry scale, continuous advancements in technology and business models, and the orderly resolution of key challenges," said Li Chuangjun, Deputy Director of the New Energy and Renewable Energy Division at the Regional Energy Administration.

While the market continues to grow steadily, the wind power industry structure is also undergoing a gradual yet steady adjustment. In the first half of 2019, the central and southeastern regions accounted for 58.7% of newly grid-connected capacity, while the "Three North" region made up 41.3%. In terms of cumulative installed capacity, the central and southeastern regions now represent 35.2%, an increase of nearly 3 percentage points compared to the same period last year, further optimizing the industry's regional layout.

Notably, the much-criticized issue of wind power curtailment has stabilized and begun to improve. From January to September 2019, the nationwide amount of wasted wind energy totaled 12.8 billion kilowatt-hours, with an average curtailment rate of 4.2%. This represents a significant improvement compared to the same period last year, dropping by 3.5 percentage points year-on-year—particularly in regions such as Xinjiang, Gansu, and western Inner Mongolia, where wind curtailment rates declined markedly on an annual basis. Li Chuangjun noted that, after years of dedicated efforts—including grid companies expanding cross-provincial transmission of wind power and other new energy sources, as well as implementing measures like power substitution and enhancing system flexibility—the problem of wind power curtailment has been effectively addressed.

The breakthrough development of offshore and distributed wind power has emerged as a major highlight. From January to September, newly grid-connected offshore wind capacity reached 1.06 million kilowatts, bringing the sector closer to its ambitious goal of achieving a cumulative grid-connected capacity of 5 million kilowatts by 2020. Meanwhile, distributed wind projects in central, southeastern, and other regions are demonstrating significant potential. "The 'local development, nearby utilization' approach has opened up an effective pathway for cost reduction and efficiency gains in areas with low-wind-speed wind resources," said Li Chuangjun. "With several key projects now being implemented, the value of distributed development—such as improving wind energy utilization efficiency and lowering overall societal energy costs—is beginning to take shape. As a result, distributed wind power is poised to become a new frontier for growth."

Wind power electricity prices are gradually decreasing.

With the emergence of economies of scale, China's wind power industry is on the verge of entering a new era of grid parity. "Even without factoring in the environmental externalities associated with coal-fired power, China's wind energy sector is already competitive in terms of cost compared to coal," says Qin Haiyan, Secretary-General of the Wind Energy Committee at the Chinese Renewable Energy Society. "Today, we’re choosing wind power not only because it’s clean, but also because it’s affordable."

With years of large-scale development and driven by numerous technological innovations, China’s wind power costs have steadily declined, significantly reducing the intensity of required subsidies. Currently, in regions with favorable resource conditions and optimal development prospects, onshore wind power no longer needs government subsidies. By 2021, China’s onshore wind industry is expected to achieve grid parity, further boosting its market competitiveness. Meanwhile, offshore wind power, which is still in its early stages of growth, continues to require relatively low levels of additional subsidies. As competitive allocation policies are implemented, the need for subsidies is set to shrink gradually, paving the way for offshore wind to reach grid parity around 2025. 
Behind the affordability of onshore wind power lies the steady progress in China’s wind-turbine technology R&D and the growing strength of its industry players. "Currently, China’s wind-energy sector not only boasts independent R&D capabilities for large-megawatt-class wind turbines but has also established a fully integrated manufacturing supply chain for wind-energy equipment," said Li Chuanjun. "As a result, the overall competitiveness and global standing of Chinese manufacturers have significantly improved." He added that China is at the forefront of developing high-capacity turbine units, as well as pioneering innovations like long blades and advanced tower designs. Moreover, cutting-edge sensing technologies—such as lidar—and intelligent systems powered by big-data analytics are now enabling more efficient, data-driven management of wind farms as a whole.

In terms of complete wind turbine unit exports, the number of regions to which China’s wind turbine units were shipped increased dramatically—from just 1 region in 2007 to 34 regions by 2018. Domestic wind turbine manufacturers have made significant contributions to boosting the global wind power market. According to statistics, in 2018, 8 of the world’s top 15 companies in terms of newly installed capacity were from China. Moreover, many domestic developers have increasingly chosen to expand overseas, with outbound investments steadily growing year after year. As a result, a comprehensive domestic and international business chain has essentially taken shape, spanning technology R&D, project development and construction, equipment supply, testing and certification, as well as supporting services.

Li Junfeng, Honorary Chairman of the Renewable Energy Committee at the China Circular Economy Association, pointed out that this year, wind power has achieved grid parity, marking a milestone that will, alongside photovoltaics, rewrite history.

Only by walking steadily can you go far.

While wind power has achieved remarkable progress over the past decade, the future will bring new challenges. By 2021, wind energy is set to reach grid parity, meaning it will no longer be backed by benchmark tariffs—and will truly enter an era of market competition.

How can we ensure the high-quality development of wind power? Li Chuanjun believes that technological innovation and institutional mechanism reform are key drivers for achieving high-quality energy development. Technological innovation in the wind power industry involves, on one hand, making greater breakthroughs in critical technologies and advanced equipment, and on the other hand, leveraging information and intelligent technologies to unlock new business models and approaches for wind power. This calls for companies to not only persist in tackling technical challenges but also actively promote smart upgrades across all operational stages, continuously enhancing power generation efficiency and reliability, reducing the cost per kilowatt-hour, and ultimately boosting both product quality and market competitiveness.

Addressing the recent trends of rushing project timelines and scrambling for equipment supplies, Li Chuangjun emphasized that the steady and sustainable development of the wind power industry hinges on maintaining stability—particularly through the guiding role of well-defined planning targets. He urged companies to proceed cautiously, aligning their projects with the goals outlined in the 13th Five-Year Plan, the actual transmission capacity of the grid, and stringent environmental regulations. By doing so, they can ensure a measured, rational approach to project implementation, delivering high-quality developments while minimizing risks for the future. Meanwhile, local authorities will strengthen oversight of how these plans are being executed across regions, helping to maintain a balanced and orderly industry landscape and preventing extreme fluctuations.

After entering the era of affordability, competitive bidding for grid access will become the norm. Whether wind power—clean and green—can continue to achieve rapid growth will depend on its ability to deeply integrate into people’s daily lives. "Greening the electricity sector is a powerful tool for building an ecological energy system and driving high-quality economic development," says Wang Zhongying, Deputy Director of the Energy Research Institute at the Regional Development and Reform Commission. "To make this happen, we must significantly increase the electrification of end-use energy consumption while boosting overall energy efficiency." He adds that for wind power to thrive, it must be seamlessly integrated into society, industry, and everyday life—for instance, each electric vehicle essentially functions as a tiny, near-zero-cost energy storage station, enabling the power grid to absorb more wind and solar energy.

Data shows that by 2050, with an estimated 400 million electric vehicles on the road, the country could theoretically support 4 billion kilowatts of installed renewable energy capacity. Wang Zhongying suggests that, in the next phase, while continuing to develop large-scale wind power bases in western regions, China should place greater emphasis on promoting distributed wind energy projects in the central and eastern areas. At the same time, a competitive electricity market mechanism should be established.