Will coronavirus will affect China’s wind market?

The outbreak of coronavirus will significantly affect the supply chain as well as installation operations of China’s wind energy industry. According to a report released by the Chinese Wind Energy Association (CWEA) as well as Global Wind Energy Council (GWEC), the epidemic will also affect the global wind industry.

GWEC came up with a conclusion that despite the virus influencing the installation operations and supply chain, the effect will not be as important as some industry observers claims. This is because China is the one that produces the highest wind power capacity across the world. Both North America and China in 2018 made up approximately 50% of the world’s entire installed wind production capacity.

Operations have come back to normal following the Chinese New Year holiday. The Chinese turbine OEMs which include Mingyang, CSIS Haizhuang, Goldwind, DEC, Envision, and CRRC, and other three foreign turbines OEMs Siemens Gamesa, Vestas, and GE Renewable Energy have all resumed their operations in the week starting February 10. Among other manufacturers that have confirmed that they have continued their production in the same week include Winergy, NGC, Yongji, ZF, and Vertiv.

A wind industry survey has been initiated by China’s National Energy Administration (NEA) to access the impact of COVID-19. The objective will be determining the value of expanding the onshore wind feed-in-tariff deadline that will expire on December 31, 2020. In case the extension is accepted, it is anticipated that the number of the onshore wind projects which are capable of capitalizing on the FIT will not be amended. This is because the industry will move on to install projects within the expanded time limit.

According to market intelligence by GWEC, coronavirus has a less global impact. This is because the World Health Organisation has not issued any threat to cargo transport vessels from China. There are no clear indications if nations will inflict an import ban on the Chinese goods as a way to combat the virus.

Foreign turbine OEMs that have facilities in China will help in balancing the flow of the local components as well as rising workforce capacity. This will influence their generation output in February as well as March. If there is no solution to these challenges within a short time, Asia-Pacific markets from China and foreign turbine OEMs which export to the US have the potential to mobilize their global footprint. It will start employing untamed capacity in nations like India to make sure they meet demand.