According to statistics from the Wind Energy Professional Committee of the China Renewable Energy Society, china has the most complete and cost-effective full industry chain supply chain in the world, with 60% to 70% of global wind energy blades, gearboxes, generators, and other components produced in China.

Since 2020, the rapid advancement in wind turbine size has led to a fast decline in cost and prices within the industry chain. By September 2024, the average bidding price for complete machines is expected to be 1,475 yuan/kW, down 65% from the peak in 2020.

Wind turbine manufacturing enterprises realize that intense price competition has severely affected the sustainable and healthy development of the industry and have made efforts to resist low price competition.

On October 16 this year, 12 complete machine companies signed an industry self-discipline initiative at the Beijing International Wind Energy Exhibition.

On November 15, at the sixth Wind Power Enterprise Leaders Forum, 40 wind power companies proposed an initiative to resist low price competition and suggested creating standards and penalties for identifying behaviors of low price competition in accordance with laws and regulations.

On November 22 of this year, State Power Investment Corporation announced the bid opening for the 8.4GW project, with bidding prices for different machine models seeing an increase. The average bid price for the 6.25MW model rose by about 11% compared to the average bid price established from August to October, while the 10MW model showed a 16% increase compared to the average bid price established in September.

Industry feedback indicates that some state-owned enterprises no longer use the lowest price as the evaluation benchmark for bidding.

In the first ten months of this year, the domestic wind energy bidding volume is approximately 101 GW, a year-on-year increase of 21% (excluding the framework bidding volume, the bidding growth is 49%); against the backdrop of increasing demand, institutions expect that wind energy prices can continue to rebound.

According to the Zhitoong Finance APP, after years of accumulation, the leading domestic complete machine manufacturers have met the basic conditions for exporting overseas.

In 2023, the newly added export volume from the domestic market to Asia, Africa, and Latin America totaled 3.38 GW, accounting for approximately 26% of the newly installed capacity in those regions for the year. The overseas market price is higher than the domestic price, and the entry period is longer with higher barriers; several leading domestic enterprises have a first-mover advantage, and their profit contributions are expected to continue to increase.

China Merchants Research believes that as large-scale development continues to advance, megawatt models will enter a period of intensive delivery, and these models will also impose higher requirements on certain components. After several years of continuous price declines in the component segment, profit levels are currently low. It is expected that in the subsequent stages, segments that are asset-heavy and have relatively slow expansion may experience a tightening of supply and demand, which may also create room for price increases.

Companies related to wind energy equipment:

goldwind science&technology (02208): guosen pointed out that the jiangsu guoxin Dafeng offshore wind project is one of the first batch of grid-parity offshore wind projects in jiangsu this year, and the commencement of this project also marks the entry of offshore wind power into the second concentrated construction phase during China's "14th Five-Year Plan" period. Currently, the domestic offshore wind market is poised for growth, and it is expected that the company's offshore wind turbine deliveries will achieve rapid growth in 2024; looking ahead, the company will fully benefit from the growth of wind power demand in emerging markets, and the cost reduction effects brought by its own technology route shift.