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2011-06-10 | All chapters

Working Group Statement on Recent Cancellation of Wind Turbine Generator Production Subsidies

June 9, 2011

The Renewable Energy Sub-working Group (WG) welcomes the expiration of the “Special Fund for Wind Power Manufacturing” by the Ministry of Finance (MoF) as a positive step towards a more level playing field for business in China. This decision was announced in the MoF No. 62 Decree in February 2011. According to the Decree, a list of 440 regulations, which includes the Interim Measures of Management of Special Fund for Wind Power Manufacturing, was abolished.

The subsidy, which was only available for Chinese domestic WTG manufacturers or Chinese controlled Joint Ventures (JV), was introduced in August 2008 and awarded 600 Yuan/KW for the first 50 units of 1.5 MW or larger wind turbine generators (WTGs) produced. Single grants ranged from $6 million to $22 million, according to the US Trade Representative’s office.

The WG’s annual Position Paper had repeatedly recommended Chinese authorities cancel or equalize terms of this fund so as not to give unfair advantages to Chinese domestic WTG producers.

The end of this special subsidy as well as the cancellation in January 2010 of a 70% localization requirement for WTGs sold in China reflects positive changes toward fairer industrial policies in the wind industry.

The WG hopes China will better involve both international and domestic industry stakeholders in the drafting of new policies, regulations and standards. Fair and transparent industry support and a level playing field for all businesses will lead to healthy industry growth and a stronger China in the long term.

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