China - Government subsidizes wind power research and development

The Chinese Ministry of Finance has promulgated its "Interim Procedures For Management Of Wind Power Generation Equipment Industrialization Special Funds".

This says that for the first 50 wind power units from manufacturers that meet the relevant criteria, subsidies of CNY600 per kilowatt will be granted by Ministry of Finance. This is said to be equivalent to 10% of the cost.

According to an official of Chinese Wind Energy Association t is of great importance to promote the domestic manufacturing of wind power equipment, particularly core technologies.

According to the Interim Procedures, the special funds should be used for new product research and development of wind power equipment; the beneficiaries should be Chinese-funded or Chinese holding enterprises focusing on the manufacture of wind power equipment including finished machines, vanes, gear cases, generators, convertors, and bearings.

Manufacturers that intend to apply for the subsidy should meet six criteria including independent intellectual property rights and equipment brands.

The official from CWEA also said the funds are mainly aimed at megawatt-class wind power units for these are now the mainstream in the international market. Yet there are only a few independent megawatt-class wind power unit manufacturers in China. The Interim Procedures also mention bearings and convertors — areas in which China's wind power industry is weak and mainly depends on imported equipment.