JEC COMPOSITES MAGAZINE - Issue #34 - July/August 2007 - 20

BUSINESS Trends : Asia / Wind energy “The Asian market had exceeded all estimations” “Reducing pollution and addressing the long-term challenge of climate change has become a priority target. China took an important step toward these goals by forming the Asian-Pacific Partnership on Clean Development.” government's drive for renewable energy and low production costs for exports to fast-growing markets in the United States and Europe have foreign and domestic firms rushing to set up wind farms or build production plants across the country. JCM: What is the public opinion about environmental issues in the region? L. L.: With the entry of China in the WTO, natural resources, the environment and sustainable development have become the focus of people's attention. As we come together to advance prosperity, we must also come together to ensure the health and safety of our citizens. As economies open up, they create new opportunities, but this openness also exposes us to new risks. While addressing these public-health challenges, we must also confront the challenge of energy security in a tight global market where demand is growing. Asian nations understand that the best way to create opportunities and alleviate poverty is through economic growth. But, as their economies grow, they are using more energy. Reducing pollution and addressing the long-term challenge of climate change has become a priority target. China took an important step toward these goals by forming the Asian-Pacific Partnership on Clean Development. Together with Australia, India, Japan and South Korea, we will focus on practical ways to make the best practices and the latest energy technologies available to all. JCM: In your opinion, what is driving the wind-energy market in Asia today? L. L.: The Asian market has exceeded all estimations, thanks to unexpectedly strong growth, notably in China and India. Besides, Asian governments are paying high attention and support to the wind-energy market. Asia will have the highest average annual growth rate (28.3%) over the 2007-2010 period. The total installed capacity should reach 29 GW at the end of 2010, up from 10.7 GW in 2006. With a predicted installed capacity of 8,000 MW over the period, India will continue to be the continental leader and the fourth country globally. China will be a close second, with the highest growth rate and also a predicted installed capacity of 8,000 MW over the period. As of September 2006, there were 1,864 wind-power units in China, with an installed capacity of 1,266,000 kW. In 2006, the cumulative installed capacity grew by 65.6% year-on-year from 2005. The Chinese government’s initial target is for wind-power generation to reach 5,000 MW by 2010. By 2020, it aims for as much as 30,000 MW produced by wind alone. On the other hand, wind power has great potential as a major form of alternative energy. Coal-fired power generation currently accounts for 75% of the Chinese electricity mix, causing major environmental problems. The massive uptake of renewable energies, such as wind energy, has become the world trend. So China has taken substantial measures INTERVIEW WITH LUCAS LIN, GENERAL MANAGER, SWANCOR (TIANJIN) WIND BLADE MATERIALS CO., LTD JEC Composites Magazine: Which countries in Asia have the most dynamic energy policy? Lucas Lin: The most dynamic countries are India, Japan and China. In India, the economy is soaring and the country is hungry for energy. Large private-sector groups have begun making major investments in wind power. The government is offering tax breaks and other incentives to encourage them. In Japan, the government promotes exchanges and mutual cooperation and fosters the use of new energy sources, especially in public places. In China, the government will change wind-power pricing to a fixed tariff system, so as to build a fair competitive environment that will serve the long-term development of the local wind-power industry. Wind power is a new industry which needs support, so a special funding and tax encouragement policy has been established. The Chinese government stipulates that wind-energy producers and equipment manufacturers should get together to meet the “70% domestic product” requirement whereby 70% of wind turbine parts must be built in China. In addition, the lure of China's huge but underexploited market, the JEC Composites Magazine / No34 July-August 2007

JEC COMPOSITES MAGAZINE - Issue #34 - July/August 2007

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #34 - July/August 2007