Chemistry World outlines possible turbulence ahead for Chinese renewable energy as lead firms report heavy losses. This month solar panel and wind power equipment builder Tianwei Baobian Electric reported losses of 5.23 billion Yuan. While Sinovel, another maker of wind turbines in China, predicts that it will lose 3 billion Yuan this year.
Wiilliam Moomaw, professor of international environmental policy at Tufts University, believes that renewable industries in China expanded too quickly.
"Much of the demand for solar and wind turbines was driven by government policies and subsidies." Moomaw told Chemistry World. "When Spain removed the subsidies for solar panels suddenly, they disrupted their own industries and caused a disruption in the entire industry,"
In spite of recent financial downturns, development contracts are still being awarded and China appears committed to meeting set emissions targets through implementation of renewable energy resources. Chinese company Huayi Electric Apparatus Group was recently awarded a contract to build turbines for two utility-scale wind farms, according to Wind Power Monthly.
Huayi will develop the first wind farm in the Guangxi Zhuang Autonomous Region, providing the 49.5 MW project with 33 wind turbines rated at 1.5 MW each. The second project will be located in the Zhejiang province, and comprise 28 turbines for a total capacity of 42 MW. Combined the deals are worth 348.5 million Yuan (US$56 million) for the company.