How China built the world’s largest wind power market

This policy brief examines the rapid expansion of China's wind power market, which became the world's largest by the end of 2010. It attributes this growth to strong political will and a supportive legal framework, specifically the Renewable Energy Law of 2006, and discusses the transition from a concession-bidding pricing model to a feed-in tariff system to ensure investor profitability.

• China became the global leader in cumulative installed wind power capacity by the end of 2010, surpassing the United States. The market grew rapidly following the 2006 Renewable Energy Law, with capacity nearly doubling every year since then.
• The Chinese government's initial target of 30 GW of installed wind power capacity by 2020 was achieved 10 years ahead of schedule. Industry projections suggest the possibility of reaching 200 GW by 2020, which could reduce greenhouse gas emissions by 440 million tons.
• The legal framework supporting wind power includes the Renewable Energy Law (effective January 2006), which mandates that grid companies purchase 100% of generated wind power and establishes a Renewable Energy Fund for R&D and demonstration projects.
• China transitioned its pricing mechanism from a concession-bidding system, which often led to losses or project cancellations due to overly low bids, to a systematic feed-in tariff model in 2009. This new model provides guaranteed rates between 0.51 RMB/kWh and 0.61 RMB/kWh based on regional wind resource quality.
• Domestic manufacturing of wind equipment expanded from importing 80% of equipment to supplying over 70% of the domestic market by 2010. This was driven by a 2005 directive requiring wind farms to purchase equipment with at least 70% domestic value, though this requirement was revoked in late 2009.
• Despite the growth of wind power, China's overall energy mix remains heavily dependent on coal, which accounts for over 70% of energy production. The document notes that the massive gap between energy supply and demand has allowed for the growth of all power sources without necessarily restructuring the mix.

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} }