Domestic wind power subsidies are not all canceled, the price advantage will remain

Summary of June 7, the US ambassador to the WTO RonKirk announced that China had agreed to stop subsidies to domestic procurement of wind energy power plants. A researcher from the Energy Research Institute of the National Development and Reform Commission told the reporter of "Daily Economic News" that "cancel...

On June 7, Ron Kirk, the US ambassador to the WTO, said that China has agreed to stop purchasing subsidies for domestic wind power plants.

A researcher from the Energy Research Institute of the National Development and Reform Commission told the reporter of "Daily Economic News" that the "cancellation of subsidies" is not true and the media understands it incorrectly. He said that the unified understanding finally formed in the rounds of consultations was to abolish the Interim Measures for the Administration of Special Funds for the Industrialization of Wind Power Generation Equipment Formed by the Ministry of Finance in 2008. The "Measures" stipulate that the first 50 megawatt wind turbines that meet the supporting conditions shall be subsidized according to the standard of 600 yuan/kW. In this subsidy standard, the whole machine manufacturing enterprises and key component manufacturing enterprises each account for 50%, and the focus is on the weak links in key components. The subsidy funds are mainly used for new product development.

The aforementioned researchers pointed out that the "replacement by the award" policy of the Ministry of Finance has always been regarded by the United States as the biggest obstacle to the export of their fans to China. He said that during the "Twelfth Five-Year Plan" period, the state's subsidies for wind power equipment enterprises will continue, and the specific measures are still unclear.

Wind power companies are booming

After the introduction of the above-mentioned interim measures in 2008, after more than three years of experience, China's wind power equipment enterprises have become more and more prosperous. "At present, they are quite competitive and have already formed industrialization." Lin Boqiang, director of the Energy Economic Research Center of Xiamen University, said in an interview with the "Daily Economic News" that China's wind power equipment enterprises have enough strength to "go out" today.

However, due to the high price of wind power equipment in the United States, it is difficult to compete with China's wind power equipment with strong cost advantages. Therefore, the United States is afraid of the "leap forward" of China's wind power.

In October last year, the United States launched the “301 Survey” on China’s clean energy related policies and measures, arguing that China gave large subsidies to new energy companies and excluded US companies in new energy project bidding.

The survey involves China's wind, solar, battery and energy-saving automotive industries, and wind energy bears the brunt.

Shi Pengfei, deputy director of the Wind Energy Professional Committee of the China Renewable Energy Society, once said that the Chinese government does not have any subsidies for the “going out” wind power enterprises, but whether the enterprises can adapt to the local situation.

Insufficient research and development is short board

Lin Boqiang said that if the cancellation is conclusive, it will be beneficial to China's wind power equipment enterprises to go out.

Lin Boqiang believes that China's wind power technology level still needs to be improved, lack of independent research and development, and product replacement is too slow, which affects the sustainability of this industry. He said that China's wind power equipment is still competitive with "cheap", and the overall situation is far less than similar equipment abroad.

Jiang Jiuchun, director of the New Energy Research Institute of Beijing Jiaotong University, once said that China's basic research and development of wind power generation is not enough. There is still a big gap between industrial development and Europe and the United States. The domestic science and technology industry and industry should focus on innovation.

Based on this, the researcher of the Energy Research Institute of the National Development and Reform Commission pointed out that in the future, China will continue to support wind power equipment enterprises and moderate subsidies for research and development.

If there is no subsidy, there is little impact

Li Ang, director of the Greenpeace Climate and Energy Program, told the Daily Economic News reporter that China's wind power industry has already passed the initial stage. Even if some subsidies are cancelled, the impact will not be great. But there are more renewable energy sources in the future that require financial and market support.

At the end of 2010, China replaced the United States as the world's largest installed country of wind power. Li Ang said that China's renewable energy development is facing more international competition in the future, and it needs to be prepared for it.

Chinese wind power equipment companies that are “hard” will maintain their price advantage overseas for a long time. Lin Boqiang believes that even if there is no subsidy, it will have little impact on China's wind power enterprises.  

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