China Sets Offshore Wind Power Prices to Spur Development

Jun 19, 2014 4:20 am ET

June 19 (Bloomberg) -- China, the world’s biggest wind market, set prices of as much as 0.85 yuan (14 cents) a kilowatt-hour for power from non-auction offshore wind farms that start before 2017 to promote the industry’s development.

The power price for inter-tidal wind farms is 0.75 yuan a kilowatt-hour, the National Development and Reform Commission said today in a statement on its website. The nation will study price policies for projects that will be operational in and after 2017. Non-auction projects are those that don’t form part of government bid rounds calling for capacity.

China has about 400 megawatts of installed offshore wind capacity, the agency said. The government had announced a target of 5 gigawatts of installed capacity by 2015.

“For near-shore projects, the price is too low as China doesn’t have much experience, while the inter-tidal rate is reasonable,” said Zhou Yiyi, a Shanghai-based analyst from Bloomberg New Energy Finance. The tariffs for onshore wind mills in China are as high as 0.61 yuan a kilowatt-hour.

The Asian country encourages the determination of developers and prices for coastal, water-based wind-power projects through concession bids, while winning proposals should be lower than the newly set power prices, according to the statement.