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By Bloomberg News

July 24 (Bloomberg) — China’s government today set benchmark prices for wind power, abandoning a public bidding system, to help boost profitability at wind farms as the world’s biggest polluter seeks to boost the use of renewable energy.

The government has set on-grid tariffs at between 0.51 yuan ($0.075) and 0.61 yuan per kilowatt-hour in four regions, the National Development and Reform Commission said today. The prices are about 20 percent higher than rates determined under the previous system introduced in 2006, said Shi Pengfei, the vice president of China Wind Energy Association.

Wind farm operators have struggled to earn a profit under the public bidding system, State Electricity Regulatory Commission said on July 21. The Chinese government is stepping up efforts to boost the use of renewable energy as it prepares for emissions talks in Copenhagen in December.

“It’s good news for future developers,” Shi said. The rates are higher than prices set under the public bidding system, which ranged between 0.382 yuan and slightly more than 0.5 yuan a kilowatt-hour, and compare with tariffs of power generated by coal-fired plants of less than 0.4 yuan per kilowatt-hour, he said.

Chinese wind farm operators include Hong Kong-listed Datang International Power Generation Co. and China WindPower Group Ltd. Suppliers of equipment to the industry include China Wind Systems Inc., China High Transmission Equipment Group Co. and Goldwind Science & Technology Co.

Wind Resources

Today’s prices are set according to the different levels of wind resources in the regions, the national and development commission said in the statement, without giving details.

“The old mechanism failed to meet the actual management requirements because of the rapid development of China’s wind power industry,” according to today’s statement. The new system will be able to encourage investors to develop projects in areas with “good resources,” avoid low-quality plants and provide incentives for them to cut costs, it added.

borrowed from Jan814, best poster on internet about eloquent writing
If anyone doubts the commitment to wind power in China, here are a few very recent articles all dated this month.

State Grid Xinyuan Company Limited plans to invest RMB 10 billion in a wind project in Hebei province’s Zhangbei county, reports Shanghai Securities News. The project is expected to reach production capacity of 500MW of wind power, 100MW of solar power and 75MW of chemical energy storage, said the report. The project also includes a photovoltaic testing center that will be complete in 2010 and receive investment of RMB 240 million, the report said.

Guangdong-based Mingyang Electric’s subsidiary Mingyang Wind Power Industry Group has signed with Nantong municipal government to build a wind power equipment project in Rudong county, Nantong, in Jiangsu province , in-en.com reports July 18. Mingyang Wind Power plans to invest a total of RMB 800 million in the first phase of the project, which will be completed and begin trial production in March 2010, the report said. The two parties also signed an agreement to develop Rudong’s wind resources, the report siad.

China WindPower Group (182.HK) announced July 14 that it has signed a memorandum of understanding with Baicheng Wind Power Development Steering Committee to develop wind power projects in Baicheng, Jilin province with a total capacity of 1.5GW.
Prior to this, the company’s total wind capacity, including projects yet to be constructed, stood at more than 8gw nationwide.

China Datang Corporation subsidiary Datang New Energy has received government approval and begun construction on the initial phase of its second gigawatt-level wind power project, reports chinapower.com.cn. Established in March 2009, Datang New Energy has recorded total wind power capacity of 930MW.

China Huaneng Group subsidiary Huaneng Renewable Energy has signed an agreement to invest RMB 1.5 billion to establish a 750KW wind power station in Weishan County, Yunnan province, reports chinanews.com.cn. The project is scheduled to be complete in three years and generate 160 million kWh per year.

China aims to invest a total of RMB 1 trillion to establish seven wind power bases with combined capacity of 120GW before 2020, reports bhi.com.cn. The bases will have capacity of 10GW or more each and be located in Jiuquan, Gansu province; Hami, Xinjiang Uygur Autonomous Region; Inner Mongolia Autonomous Region, and Jilin, Hebei, and Jiangsu provinces.

Solars are feeling the love as LDK solar proves by writing off 169 million of worthless out of date inventory and the stock still goes up 13% today. SunPower rocking 32% north on huge wins with China and upped guidance which always moves markets up.

My research says China moves to wind players next week! $AMSC and $APWR and $ZOLT to benefit!

SunPower is up 32% today and over 60% in last month due to China spending and upped guidance. As SPWRA shows, the power of China spending can and will make your investment soar given time and execution. LDK and STP are also up very nicely as most Chinese solars are given the spending stimulus being spent on China solars. My research indicates wind power is next up in the China stimulus spending as more and more and more Chinese companies soar with increased spending. My APWR has been up for 8 straight days and has moved UP on no news or new contractsd. The next up and coming PR is about wind turbines shipping……….will we see the PR before July is over?? I am hoping and think so!