Analysis on the industrial performance of wind power in China

Abstract

In recent years, the growth rate of wind power in China installed capacity has tended to be sta-ble, and the competition among wind power equipment manufacturers has become increasingly fierce. In order to analyze the industrial performance of wind power in China, the paper summarized the status quo of China’s wind power, and then used the Data Envelopment Analysis (DEA) model to analyze the industrial performance of China’s wind power from 2010 to 2014. We found that: during the analysis period, the industrial performance of wind power equipment manufacturing was best in 2010. Due to fierce competition between wind turbines manufacturers, the industrial performance was in the declining trend in the next three years. By 2014, the performance increased again, but did not reach the best state. Besides, the technical efficiency has been better than scale efficiency. 1 INSTRUCTION With the adjustment of energy structure, the renewable energy, especially the wind power, was facing a historic opportunity for development in China. In recent years, wind power industry itself has been also in the state of constant adjustment. The scale of projects approval, equipment tendering and projects construction of the wind power all has bigger growth. Besides, the grid-connected and integration issues of China’s wind power were also alleviated, due to the construction of UHV grid and the implementation of interconnection policy and subsidies policy. Therefore, the installed capacity of wind power in China maintained a rapid growth. At present, the market concentration degree of wind power manufacturing industry in China has been in a downward trend, but it is still higher [Yuanxin Liu, 2015]. According to the new installed capacity situation, the domestic market shares of the top 20 wind turbine manufacturers were about 90%. Although the market demand of domestic wind power grew steadily, the competition between wind power manufacturers was still fierce, and the overcapacity problem of wind power industry was stall serious. Both fierce competition and overcapacity have important influence on the industrial efficiency, so it is significant to research on the industrial performance of China’s wind power. In recent years, large numbers of scholars researched the China’s wind power industry from different aspects, such as wind power price and policy [Ping Lu, 2013] [Ting-Ting Mi, 2012], development bottleneck [Zhao Dong, 2009] [Hua BAI, 2012], sustainable development [Zheng-ming WANG, 2008] [Weidong Shi, 2011]and wind power industry innovation [Yuanying CHI, 2008] [Jorrit Gosens, 2013]. The research literatures of China’s wind Power industry have been comprehensive. Based on the exiting research literatures, the paper adopted the DEA model to analyze the industrial performance of China’s wind power.