Chinese wind turbine exports hit new record
China’s wind turbine exports are booming.
On Friday, the China Wind Energy Association (CWEA) released 2023 Chinese turbine export figures:
- Chinese OEMs exported 3.66 GW of turbines, a 60.2% y/y increase and the highest figure in history.
Some context: Chinese wind turbine costs have dropped dramatically in recent years due to economies of scale and manufacturing overcapacity.
- Onshore and offshore turbine prices have dropped by 60% and 50%, respectively, since 2020.
- Cost per capacity can be as low as one-fifth of European and US producers.
More context: Despite growing costs and technological competitiveness, the Chinese turbine industry remains largely inward-looking. Between 2020 and 2023, domestic demand outpaced exports by a factor of 20, compared to a roughly 50/50 split for solar.
- Unlike solar, the presence of competitive Western companies, trade barriers, and logistical challenges have made it difficult for Chinese OEMs to penetrate the EU and US wind power markets – which are by far the biggest outside of China.
- Meanwhile, high upfront costs and engineering challenges around turbine installations have limited market demand in the Global South.
But things are changing: Deep-pocketed Chinese and Gulf Arab utilities are now developing massive wind capacity across the developing world using Chinese-made turbines.
- Last year, Uzbekistan, Egypt, Laos, and South Africa accounted for nearly 60% of Chinese turbine exports.
Get smart: While OEMs will still struggle to access Western markets, Beijing’s "Green BRI" will drive a coordinated push by Chinese utilities, engineering firms, and turbine manufacturers to accelerate wind development in the Global South.
- That could drive massive demand for Chinese turbines and reshape the global wind industry.