In the short term, the battle between "new and old" energy interests will likely bring both joy and anxiety, but in the long run, renewable energy will benefit everyone because we all share the same air.
Driving 20 kilometers northwest along the Beijing-Zhangjiakou expressway brings you to Yanqing County, Beijing. On a clear day, you can see a row of white wind turbines standing like future warriors in formation. These towering, snow-white machines are stationed along the banks of Guanting Reservoir, forming Beijing’s Guanting Wind Farm. In the canyon, the blades spin rapidly, but the development of wind power has not been as smooth as the turning blades.
After five years of rapid progress, the Guanting Wind Farm was approved in August 2006 and constructed by Beijing Jingneng Clean Energy Power Co., Ltd. It was part of the “Olympic Application†initiative. Construction began in early 2007, and the project was connected to the grid on January 18, 2008—just one year after it started.
A representative from the Beijing Municipal Development and Reform Commission once told the media that the government-run wind farm could supply an average of 300,000 kilowatt-hours per day, enough to meet the electricity needs of 100,000 households. According to calculations, once operational, the Guanting Wind Farm helped reduce carbon dioxide emissions by 100,000 tons, sulfur dioxide by 782 tons, carbon monoxide by 11 tons, and nitrogen oxides by 444 tons annually, while saving 50,000 tons of coal.
Since the global oil crisis in 1973, wind energy began to emerge as part of the new energy sector. However, in China, it wasn’t until 2005, with the introduction of favorable policies, that the wind power industry experienced significant growth. A key milestone was the 2006 promulgation of the Renewable Energy Law, which mandated that grid companies purchase all renewable energy at a price higher than traditional electricity. This policy provided investors with strong confidence in wind power projects.
“Back then, the combination of electricity pricing and manufacturing costs made wind power profitable,†said Li Minghui, Deputy General Manager of Beijing Jingneng New Energy Co., Ltd., who witnessed this rapid growth. “Once the business model matured, wind power naturally developed.â€
From 2005 to 2008, less than four years, the number of domestic wind turbine manufacturers surged past 100, many of whom imported designs from abroad without fully understanding them. “Whoever had a fan could sign contracts to build wind farms,†Li recalled. “Five years ago, there were almost no wind turbines along provincial highways in Inner Mongolia. Now, you drive for miles and see them everywhere.â€
China’s wind power development has advanced more rapidly than in developed countries over the past 15 years. By the end of 2012, China’s total wind power installed capacity reached 60.83 million kilowatts, ranking first globally, with 100.4 billion kWh of electricity generated. Wind power became the third-largest power source in China after thermal and hydro power.
Despite its rapid growth, wind power utilization efficiency remains low. In 2012, the average annual operating hours of wind power equipment nationwide was 1,890 hours, down 30 hours from 2011, with some provinces reporting as low as 1,400 hours. This inefficiency led to significant waste and intensified environmental conflicts.
The “wind curtailment†issue has become a major challenge. “We didn’t expect wind curtailment to happen so quickly,†Li said. The mismatch between wind resources and power demand is a key problem. While the “Three North†regions (northwest, northeast, and northern China) have abundant wind resources, most power demand is concentrated in coastal areas. As wind power development in these regions has grown, issues like limited on-site consumption, imbalanced grid output, and wind curtailment have worsened.
According to the “China Wind Power Development Report 2012,†wind curtailment exceeded 10 billion kilowatt-hours in 2011, with over 12% of wind energy being wasted. This equates to a loss of 3.3 million tons of standard coal, costing wind power companies over 5 billion yuan—half of the industry's profits.
Li explained that electricity cannot be stored, so power generation must match consumption. If not transported, excess electricity is wasted. For example, in the Mengxi Power Grid, thermal power accounts for 53% of installed capacity, while wind power is only 9.87 million kilowatts. With limited transmission channels, wind power is often curtailed.
Grid infrastructure has not kept up with the rapid expansion of wind power, leading to forced power reductions. Since 2009, power restrictions have increased, reaching a peak in recent years. Some estimates suggest actual wind curtailment is higher than reported, with Jingneng losing hundreds of millions of yuan annually due to this issue.
Restricted grid access is just one reason for wind curtailment. Part of the resistance comes from the traditional thermal power industry, which sees wind power as a threat. Although the Renewable Energy Law supports renewable energy, in practice, wind power is often forced to “peak†and “make way†for thermal power.
Experts like Shi Pengfei from the China Renewable Energy Society suggest integrating wind power into the broader power system, using pumped storage, natural gas, and better forecasting to balance supply and demand. Some regions have already introduced compensation mechanisms to help wind power companies offset losses from curtailment.
While wind power faces challenges, it still holds great promise. The National Energy Bureau set targets for wind power development in the 12th Five-Year Plan, aiming for 100 million kilowatts of installed capacity by 2015. The State Grid Corporation also pledged to integrate distributed power sources, including wind, into the national grid.
However, as an emerging industry, wind power requires more detailed support to ensure sustainable growth. The draft “Measures for the Management of Renewable Energy Power Quotas†aims to enforce renewable energy targets across power companies, grid operators, and local governments.
For example, Beijing is required to consume 11.3 billion kilowatt-hours of renewable energy by 2015, but only 2.9 billion can come from local sources, meaning 8.4 billion must be imported from other provinces. This will push the development of cross-provincial grids.
Beijing itself lacks ideal conditions for large-scale wind or solar power, due to limited suitable sites and weak wind and solar resources. Therefore, wind power must rely on surrounding regions, which in turn drives the development of peripheral infrastructure.
Despite ongoing challenges in implementing the draft measures, Li believes the policy will eventually take effect. In the short term, the struggle between new and old energy interests will create winners and losers, but in the long run, renewable energy will benefit everyone, as we all share the same air.
Looking ahead, Li is confident that wind power is on track for greater development in the future.
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