By Lance Maughan

Wind power is a priority for Chinese policy makers, who see turbines as a way to wean the power-hungry nation off coal and oil. Wind is also potentially an industry in which China can lead the world, as turbine producers crowd into the country to cash in on a remarkable ramp-up in local wind capacity. Wind farm operators are guaranteed a market as the government compels power companies to buy their electricity. Operators also sell credits to Western corporations as carbon offsets under the Kyoto Protocol's Clean Development Mechanism (CDM).

Four of the largest windmill and wind power organizations in the world have offices in the northern Chinese city of Tianjin: Vestas, Gamesa, Winenergy and Suslon. World number-two wind energy manufacturer Gamesa employs 1,000 people at its Tianjin operation, making the company's 850 kilowatt (kW) G52 and G58 models. Danish company Vestas manufactures generators, nacelles and hubs at its Tianjin facility. A factory opened last year to make blades is "state of the art" says the company's China head, Jorn Dalsgaard Pedersen.

Tianjin's location has made it the centre of China's wind turbine/equipment industry, explains Gamesa's China manager Jesus Zaldua. "It makes for easier transportation because wind farms are mainly located in the north of China." The city's port and history of heavy industry are also draws, along with a proximity to the headquarters of China's largest power companies. "Tianjin is located near Beijing, where customer decision-makers are located," says Zaldua.

Tianjin's turbine makers boast spectacularly full order books. The locally registered operation of Indian-owned Suzlon recently sold 100 megawatts (MW) of turbine capacity to Chinese power generator Jingneng. Suzlon claims eight percent market share in China, with a per-annum manufacturing capacity of 220MW at its plant in Tianjin. The company's local chief Paulo Soares hopes that by the end of 2008 the company will be making turbines totaling 600MW capacity per year. That's considerable in the context of China's energy needs, given that 1MW is sufficient to provide a daily electricity supply for 900 households.

China had wind power facilities with a combined installed capacity of 6.05 million kW at the end of 2007, increasing from 2.67 million kW only a year earlier. Another 4.2 million kW will be added in 2008. At this rate China will quickly catch up with Germany, the top wind power producer with a total installed capacity of 20.62 million kW. China plans to have wind capacity of 30 million kW installed by 2020 (China had an overall capacity of 713 million kW at the end of 2007 according to the policy-setting National Research and Development Commission).

Chinese government policy has encouraged the growth of a domestic turbine manufacturing base by demanding that turbines used on Chinese wind farms contain at least 70 percent locally-made components. Hence companies like Gamesa have set up manufacturing operations in China. While 100 percent of the turbines produced in Tianjin are for the local market, in 2008 the company began shipping some Tianjin components to plants in Spain and the US. Gamesa's G52 and G58 turbines, both 850kW capacity, boast a "robust design" which has been proven in global markets. More than 10,000 units are already operational worldwide, claims Jesus Zaldua. "Our turbines have a high and sustainable availability."

Local wind turbine makers have grown quickly alongside foreign brands like Gamesa. Nine Chinese turbine makers, including market leaders Goldwind and Zhejiang Windey, have export capacity. Most Chinese turbine makers have licensed technology from overseas counterparts. Zhejiang Windey, which licensed its core technology from Germany's REPower, opened a factory in Zhangjiakou, Hebei Province late last year, with an annual output capacity of 600MW.