GOOD MORNING FROM LONDON
Nikkei focuses on the tripling of worldwide power capacity in 2021 – driven by China – when 21.1 gigawatts of offshore wind generation was commissioned roughly equivalent to 21 nuclear reactors. China, says Nikkei, is responsible for the bulk of the growth having commissioned 80% of the total. By way of comparison, Europe added 3.32/GW – a modest gain of 13%.
In 2019 China’s National Development and Reform Commission informed operators that the new offshore wind capacity approved in 2018 must be connected to the grid by the end of 2021 for the subsidised power pricing.
Nikkei cited the Japanese Renewable Energy Institute “In China, provincial governments select the maritime area to be developed and the power provider and central government grants the authorisation. Because renewable energy is seen as a foundation for economic growth Chinese Provinces are competing in a development race to build supply chains involving local companies.
Backed by domestic growth, Chinese wind turbine manufacturers have made an international impact + captured 4th place in terms of offshore wind turbine capacity – according to BloombergNEF. Chinese companies are positioned to break out of the domestic market and challenge European competitors for global sales.
Generally, the West has underestimated China. After years of talking down to China, it has taken time for the issue of China to move up the agenda and its progress in Renewable Energy is alerting the West that a serious competitor has appeared on the world stage. This is part of the Geo-political change that is taking place in the relative economic performance of leading countries. China is knocking on the door.