China Gets in on Wind Power Movement, Could Help Lower Prices

A wind farm in Beijing, China.
Mar 17 2009



The HEAT Zone has reported extensively on the portion of President Obama’s stimulus bill that is designated to fund development of alternative energy here in the US. Halfway around the globe, another economic powerhouse has its own stimulus package, and is using it to fund development of some of the same renewable energy sources.

A segment aired yesterday on National Public Media’s radio show Marketplace reported on China’s new push toward wind energy. Hoping to stimulate the economy, the Chinese government is shelling out billions to fund infrastructure projects (much like the US government will begin to do in the coming weeks and months), including wind farms. For every dollar invested in Chinese wind farms, 70 cents is borrowed; state-owned energy companies can easily secure loans from state-owned banks, generating enough credit to pave the way for large-scale production of wind farms. This official push toward wind power is a dual investment in China’s future: wind power equipment could prove to be a valuable export, and increased utilization of wind power in China helps improve the horrendous state of air quality in the country. With a recent explosion in car ownership and 80 percent of the nation’s electricity generated by coal-fired power plants, air pollution is a serious problem that must be addressed immediately.

As government funding helps to build the domestic wind industry and cheap labor continues to support Chinese manufacturing, the “made in China” effect could increase global demand for wind turbines by making them more affordable. Meanwhile, wind power in China continues to boom: “Every year, the country doubles its wind power capacity. At this rate, it’ll blow past the U.S. and become the world’s top producer by 2020.”