China relaxes its energy rule

China relaxes its energy rule

Rules related to wind turbines in China got relaxed recently as the Chinese government dropped the rule which stated that 70 percent of production of wind turbines are supposed to be produced in the domestic market. This rule was against the decision made in the year 2005 by the “NDRC”, the top economic planner in country.
The alteration in the policy will create a stir in the international markets as foreign industries will start investing in China’s vast wind turbine industry which will heighten the competition between the overseas and domestic providers. When the local news reporters tried contacting Shi Lishan, the deputy director of renewable energy based at Beijing National Development and Reform Commission, he was not available for comment nor any kind of communication.

According to the European Union Chamber of Commerce in China, in the month of May last year, international companies had lost out on the wind turbine projects and it was difficult to contend with the domestic market due to the rule which required 70 percent of wind power instruments to be manufactured locally.
As per Andrew Hilton, a spokesman for Vestas Wind Systems A/S in China, which is the world’s biggest producer of wind turbines, the Chinese government had declared amendment to the rule which would relax the percentage of local bound productions.
However, Samantha Ko, executive director of Hong Kong-listed China Windpower Group Ltd. was not aware of the change of rule.
China plans to increase its energy production fivefold by 2010 as it’s the world’s largest power consuming country.
As per Zhang Guobao, head of the National Energy Administration, the wind power generating capacity of the country would increase from 20,000 megawatts in 2010 to a minimum 100,000 megawatts in the year of 2020. This would mark a drastic increment towards its power generation capacity.

Currently, the country houses a total  of 70 wind turbine makers which have a capacity to generate around 15,000 megawatts a year.

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