Wind power generation in China: Understanding the mismatch between capacity and generation

The Chinese government has made an important effort to diversify the country’s energy mix and exploit different sources of renewable energy. Although China’s installed wind power capacity has experienced a dramatic expansion over the past five years, electricity generation from wind power has not increased as expected. This paper aims to present the current status of wind generation in China and analyze the causes of the large discrepancy between installed capacity and generation. We find that this is mainly caused by the inadequacy of the power transmission grid, the absence of economic incentives to transmission and backup generation providers, and the lack of a generation-based renewable portfolio standard.

► Recent data on wind power installed capacity and generation in China shows a mismatch. ► Policy incentives and lower costs have increased installed capacity, not generation. ► Lack of transmission capacity contributes to low capacity factor of wind farms. ► Lack of incentives for transmission companies causes wind power curtailment. ► Enforcement of existing laws and creation of a generation based RPS are required.