photo by Mike Locke
Given that manufacturing of wind power components can not only help local economies through job creation, but can save money overall, it certainly makes sense for China to make as many of the parts required to continue building its booming wind industry domestically. Illustrating how this is being done, Renewable Energy World gives us a brief glimpse of how China is doing just that.Central Mandates and Tax Reform Spur Localization
Currently all new wind power projects in China have a requirement that 70% of the components must be locally sourced. Furthermore domestic wind power component manufacturers are receiving a 50% discount on value added taxes. At the same time, the tariff-free status of importation of wind turbines of less than 2.5MW has been discontinued.
China to Lead World by 2009 in Wind Power Manufacturing
The article goes on to point out that by 2009, China will be the largest manufacturer of wind turbines in the world, with 17 of its 40 turbine manufacturers being state-owned, 12 private chinese firms, and 11 joint ventures or foreign owned. While domestic turbine manufacturers have mostly been limited to producing turbines 1.5 MW in size or smaller, plans have been purchased for larger models and Chinese development of domestic prototypes is beginning.