Not overproduction of new renewable energy… China is pushing out exports due to a sharp drop in demand

Demand for wind power generation decreased after subsidy reduction
Easier access to the US and Europe due to quality concerns
Expanding turbine exports to individual countries, ‘[Seoul Economy]’,
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, ‘China, which has been facing sanctions from the West due to overproduction in green industries such as electric cars and batteries, is reportedly pushing out wind power generation to individual countries (Eurasian land and maritime Silk Road) in order to address the surplus.’,
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, ‘According to the Chinese economic media Chai Xin on the 19th, it was revealed that domestic wind power installation demand in China has sharply declined after the government completely cut national subsidies for new wind projects in 2021.’,
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, ‘Experts have pointed out that with the decrease in demand, a large-scale oversupply is occurring in the offshore wind sector. Zhang Shinkang, a wind power industry expert and head of new energy projects at a financial institution, stated, “China’s annual offshore wind turbine production capacity reaches about 15 gigawatts, but the actual installation capacity in 2022 was only 5 gigawatts,” adding, “In 2023, the installation capacity is around 7 gigawatts, still falling short of half of that year’s production capacity.”‘,
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, ‘As a result, prices have plummeted. According to data from Ping An Insurance, the average bidding price for onshore wind turbine projects dropped by about half from around 3,000 yuan per kilowatt-hour in early 2021 to approximately 1,500 yuan. Similarly, the average bidding price for offshore wind turbine projects also decreased by more than half from around 7,000 yuan per kilowatt-hour during the same period.’,
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, ‘Chinese companies have started to heavily target European countries that have shown increased interest in the renewable energy sector following the Ukraine war. While the top Chinese companies in the domestic market are barely achieving a total profit margin of less than 10%, the global wind power market is lucrative in Europe. However, Chinese wind power companies’ entry into foreign markets is not without challenges. It is known that insurance companies are refusing to provide guarantees for Chinese products or demanding higher premiums due to local quality concerns.’,
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, ‘In response, China is targeting countries that have joined the Belt and Road Initiative. In 2023, China’s wind turbine exports increased by over 60% compared to the previous year, with Uzbekistan, Egypt, South Africa, Laos, and Chile ranking among the top five countries in the Belt and Road cooperation. Export to Brazil, which maintains relatively good political relations, is also increasing. Brazil’s cumulative wind power generation capacity doubled from 14GW in 2018 to 28GW in 2023.’,
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