Wind Power Concession Programme

Domestic and international companies are invited to bid for relatively large-scale potential projects (100-200MW). Successful bidders are selected according to the price per kWh of wind electricity proposed and the share of domestic components utilised in the wind farm. The wind concession lasts for 25 years and the bid price is guaranteed as a feed-in tariff for the first 30,000 full load hours achieved (for a 100 MW project, this amounts to approximately 3 billion kWh). Depending on the sites wind resource, this could cover about 10-15 years. After 30,000 full load hours, the project owner will receive the average local feed-in-tariff on the power market at that time. Two projects have so far been awarded, one in Rudong, Jiangsu, and one in Huilai, Guangdong. These two projects required 50% domestic content in turbines. The former achieved a price of 0.43 Renminbi, the latter 0.5 Renminibi per kWh (USD 0.051 and USD 0.06 respectively). The Rudong project will be powered by 50 Vestas turbines (2MW each). In the course of this project, Vestas is planning to open a blade factory in mainland China. In 2004, the Chinese Government has offered three more concession projects of 100-200MW in size, one in each in Jiangsu, Inner Mongolia, and Jilin. These concession projects will require 70% domestic content and together will result in 650 MW of added capacity. The NDRC expects to award a total of 20 such projects by 2010, contributing to the overall aim to reach 20000MW installed capacity in 2020.

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