China Has Increased Its Installed Wind Energy Capacity

878 Words Nov 29th, 2014 4 Pages
After passing of this law, China took a concerted effort towards increasing its renewable energy profile. China has increased its installed wind energy capacity from 1.260 GW to 62.36 GW from 2005 to 2011. This can be compared with the United States that saw an increased wind energy capacity from 8.7 GW to 45.98 GW in the same time period. This is a 10.2\% increase annually versus 6.2\% in the United States. As shown in figure ef{AC_Sys_Voltages}, China installed 45.6\% of the total wind energy installed around the world in 2013.

In addition to the Renewable Energy Law, subsequent implementation measures created specific rules that provided economic incentives for the wind industry in China. Feed-in-tariffs (FIT) were introduced that compensated wind power producers with a financial incentive based on the quantity of energy produced. These FITs were divided into four groups in accordance with the abundance of wind available in their region. Per cite{IEEEhowto:Carbon_Trust_China}, this was set at: CNY0.51/kWh (Group I), CNY0.54/kWh (Group II), CNY0.58/kWh (Group III) and CNY0.61/kWh (Group IV). The four regions are shown in Figure ef{China_wind_res_map}. These FITs set a clear cost benchmark for both wind developers and the grids.

Additionally, wind turbine and technology developers have also benefited through preferential tax policy. In 2009, enterprises involved in the development of wind power enjoyed a 50\% value-added-tax (VAT) reduction from 17\% to 8.5\% and a…

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