Wind Giants Are Facing More Competition in the Biggest Market

(Bloomberg) -- China’s top wind turbine producers are facing a growing challenge in the world’s largest market, as smaller players increase sales and with fierce competition on pricing.

The market share of the top three turbine makers in China fell for the second year in a row and is now down to 48% from 62% in 2019, BloombergNEF analysts Leo Wang and Cheng Ma said in a report published Tuesday. “High competition could continue to squeeze the top three’s order volume,” according to the analysts.

Installations in China by foreign companies, including Vestas Wind Systems A/S and General Electric Co., halved last year and the outlook for 2022 remains difficult, the analysts said. The cost of onshore turbines produced by foreign firms is about twice as high as equipment sold by domestic firms.

“A leading factor is the fierce turbine price competition in China, making it difficult for foreign companies to obtain orders,” Wang said in an interview.

State-owned Zhejiang Windey Co. doubled its installations in 2021 to become one of China’s key suppliers, the BNEF data shows. Government-backed producers have been lifting their share of the turbine market in recent years, as President Xi Jinping sets out policies aimed at boosting clean energy and curbing emissions.

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