Recently, the Ministry of Industry and Information Technology of China organized the issuance of the "Wind Power Equipment Manufacturing Industry Access Standards" (draft for soliciting opinions). The "Access Standards" mainly cover three aspects: new wind turbine production enterprises must have the necessary production conditions and all production supporting facilities to produce a single unit capacity of 2.5 megawatts or more and an annual output of 1 million kilowatts or more; Enterprises undergoing renovation and expansion should have a cumulative installed capacity of no less than 500000 kilowatts; Newly built wind turbine manufacturers should have at least 5 years of experience in the large-scale electromechanical industry.

The author believes that this standard will be conducive to accelerating the construction of wind power standards, improving the quality of wind power equipment and independent innovation capabilities, and is of great significance for promoting the large-scale and internationalization of the wind power equipment industry, and cultivating large wind power equipment enterprises with international competitiveness.

In addition to the two standards of "single unit capacity of 2.5 megawatts" and "annual output of 1 million kilowatts", the draft for soliciting opinions of the "Standard" also points out that in terms of the establishment of production enterprises, the establishment of wind turbine production enterprises should comply with national industrial policies and the development plan of the wind power equipment manufacturing industry, and the proportion of self owned funds in project investment should not be less than 30%.

This actually sets a threshold for new investors interested in entering the wind turbine industry. Therefore, for manufacturers who have already entered the industry, there will be overall benefits, while for wind power enterprises such as Goldwind Technology, Huarui, and Dongfang Electric that have significant market advantages in the industry, the benefits will be more obvious.

Not long ago, according to the latest statistical data provided by the China Wind Energy Association, as of the end of 2009, Huarui added 3.495 million kilowatts of installed capacity, Goldwind added 2.722 million kilowatts, and Dongqi added 2.035 million kilowatts. The total installed capacity of the three enterprises was 8.252 million kilowatts, accounting for 59.7% of the national new market, and dominating most of the market.

After ranking fourth, the highest newly installed capacity of enterprises is less than 800000 kilowatts. Among them, there are 16 enterprises with newly installed capacity ranging from 100000 to 800000 kilowatts, accounting for 36.1% of China's new market. In 2009, there were more than 20 enterprises with newly installed capacity of less than 100000 kilowatts, and most of them have just entered the stage of prototype trial operation. These enterprises have a total installed capacity of 551200 kilowatts, accounting for only 4% of the newly added market size in the country.

These data indicate that the concentration of the wind turbine market is gradually increasing, and the hierarchical structure is becoming more apparent. The gap between Huarui, Jinfeng, and Dongqi in the first tier and the second tier is increasing. Among them, the three manufacturing companies in the first tier all exceeded 2 million kilowatts, while none of them in the second tier exceeded 1 million kilowatts. Most of the third tier teams are still in the prototype production stage.

The introduction of the "Access Standards" will further exacerbate the polarization trend of domestic complete machine manufacturing enterprises. Strong enterprises will become stronger, while weak enterprises will either be eliminated or merged.

According to statistics from the China Wind Energy Association, in 2009, China added 13.83 million kilowatts of wind power installed capacity, surpassing Germany to become the world's second largest wind power installed capacity. However, in the process of joint development of new models in our country, foreign design is still the main focus. The Chinese side has not fully mastered the core technology of the overall design of wind turbines, and most enterprises do not have the core technology and only serve as assembly plants.

The establishment of entry barriers will effectively curb the vicious competition caused by price wars as the main means for new entrants, and the advantages of enterprises with strong research and development capabilities and stable services will be more obvious. (Source: China Economic Herald Author: Wang Yingchun)

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