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Overcapacity is not a concern
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14:04, August 10, 2009

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 China starts building its first 10 million-kw wind power station
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Overall, China plans to bring its total wind power capacity to 100 gigawatts by 2020 a sizable increase over the current 12 gigawatts.

This is part of a broad energy target to generate 3-percent of the nation's total electricity from non-hydro renewable energy.

But some analysts have cautioned against blind expansion in the wind power sector, which has drawn swarms of investors and record installations.

Officials from the National Energy Administration have dismissed concerns about overcapacity saying that China's wind power capacity is only about one percent of the country's total power demand.

They say the real problem is not excessive capacity, but lagging grid services. To solve the problem, China announced last month that it would apply benchmark tariffs for new wind projects, giving clarity to power producers.

Source: CCTV.com

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