China Formally Canceled the Franchise on Wind Power Equipment

Recently, China has cancelled the stipulation that the domestic production ratio of wind power project equipments shall exceed 70 percent, said Shi Lishan, the New Energy Officer of National Energy Administration.

National Development and Reform Committee started to promote the Wind Power Project in 2003, and formally required the domestic production ratio of franchised project equipment shall be up to 70 percent. This measure was largely promoted the development of domestic wind power equipments. By the year of 2008, in accumulative shares of China's wind power equipments market, the products from Chinese domestic-fund and joint venture enterprises took up 61.8 percent, and products from foreign-fund enterprise took up 38.2 percent.

According to relevant experts, the cancellation of China wind power equipments franchise will cause dramatic effect on domestic wind power enterprises, especially enterprises short of technology innovation with products relevant out of date, and those enterprises will directly face the strike from foreign-fund wind power giants.