How China built the world’s largest wind power market

The document analyzes China's rapid expansion in wind power, highlighting the role of the 2006 Renewable Energy Law, the transition from concession bidding to feed-in tariffs, and the growth of domestic manufacturing.

• China became the global leader in cumulative installed wind capacity by the end of 2010, surpassing the United States. The market grew rapidly following the 2006 Renewable Energy Law, with capacity nearly doubling annually since that year.
• The Chinese government's initial target of 30 GW of installed wind capacity by 2020 was achieved 10 years ahead of schedule. Industry projections in 2010 suggested a potential for 200 GW by 2020, which could reduce greenhouse gas emissions by 440 million tons.
• The legal framework supporting wind power is centered on the Renewable Energy Law (effective January 2006), which includes compulsory purchase of wind power by grid companies, clear development targets, and a Renewable Energy Fund for R&D and standards.
• China transitioned from a concession bidding system, which often led to project losses or cancellations due to prices being too low, to a systematic feed-in tariff model in 2009. This new model provided guaranteed prices ranging from 0.51 RMB/kWh to 0.61 RMB/kWh based on regional wind resource quality.
• Domestic manufacturing grew from supplying 20% of the market to over 70% by 2010. This was supported by a 2005 directive requiring 70% domestic value in equipment, though the government revoked this requirement in late 2009 after the objective was met.
• Despite wind power growth, China's energy mix remains heavily dependent on coal, which accounts for over 70% of energy production. The document argues that achieving a balanced mix requires policies that account for the externalities of fossil fuels.

APA

Yang, A. (2011). How China built the world’s largest wind power market. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/China-InsideStory_proof6F_web2.pdf

Chicago

Yang, Ailun. How China built the world’s largest wind power market. Climate and Development Knowledge Network, 2011. https://cdkn.org/sites/default/files/files/China-InsideStory_proof6F_web2.pdf.

Wikipedia

{{cite report |last1=Yang |first1=Ailun |title=How China built the world’s largest wind power market |publisher=Climate and Development Knowledge Network |date=November 2011 |url=https://cdkn.org/sites/default/files/files/China-InsideStory_proof6F_web2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yang2011how, author = {Yang, Ailun}, title = {{How China built the world’s largest wind power market}}, institution = {Climate and Development Knowledge Network}, year = {2011}, month = nov, url = {https://cdkn.org/sites/default/files/files/China-InsideStory_proof6F_web2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }