China's Wind Turbine Association and Photovoltaic Industry Association Take Steps to Restore Market Stability

Commitment to Price Stability

During a pivotal conference in Beijing, China's leading wind turbine manufacturers including Goldwind, Envision, Mingyang Smart Energy, Shanghai Electric, and Dongfeng Electric resolved to end the ongoing price war in their sector. Twelve major players signed a pledge to enhance pricing discipline and avoid collusion.

Impact on Industry

The intense competition has severely impacted profits, pushing several companies into unprofitable territories. Qin Haiyan from the China Wind Turbine Association remarked that continual undercutting threatens the wind energy sector's sustainability.

Lou Yimin, senior VP of Envision Energy, emphasized the need for a long-term investment perspective, stating wind power offers substantial returns over its 25 to 30-year lifecycle.

Parallel Developments in Solar Industry

This wind turbine agreement mirrors actions taken by the China Photovoltaic Industry Association. Industry leaders like Longi Green Energy, Tongwei, and JinkoSolar convened recently to curb aggressive competitive practices.

In 2022, China significantly led global renewable capacity growth, adding an impressive 76 GW of wind energy.

Facing pressures for reduced carbon emissions by 2030, China is seeing a surge in production but must balance supply-demand conditions to ensure profitability for manufacturers.

Government and Market Interaction

Notably, GCL Technology's Zhu Gongshan has called for government intervention to create stability in the market. Recent pledges from industry leaders could help raise and stabilize wind turbine prices in the market.