Assessing the impact of Wind Power Investment Utilizing Electricity

Abstract

China has been actively developing wind power for several decades, and its installed capacity has grown rapidly, which can be largely attributed to the favorable policy support and subsidies provided to wind power investments. However, China's resource-based strategy for wind power layout may not be fully taking into account the information on electricity demand. Therefore, the authors aim to identify the key factors driving the regional distribution of wind power in China, with a particular focus on the relationship between wind farm investments and local electricity demand. The study reveals that, compared to earlier stages of development, wind power installation growth is now more concentrated in regions with high electricity demand rather than just in resource-rich areas. Moreover, the model results demonstrate that the leading effect of demand on wind investment is more pronounced in resource-rich regions than in other areas. Demand information and mechanism analysis highlight the significant role of zoning policies in moderating the impact of demand on wind power siting and investment.