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‘Historic breakthrough’: China’s installed wind turbine cost drops to one-fifth of the US in green energy race
- The installed wind turbine cost in China has hit a record low price, dropping 45 per cent since last year
- It is now just one-fifth the equivalent cost in the United States, solidifying China’s place as a global leader in renewable energy
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Wind power is soaring ahead in China, with the installation price of turbines dropping nearly 45 per cent thanks to technological advancements and economies of scale, according to government tender documents.
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The figures from one major project in the Gobi desert suggest that China has solidified its place as a global leader in the green energy race, putting it well ahead of the United States, with the installed wind turbine price just one-fifth of the equivalent cost in America.
The installation price is now slightly more than 2 yuan (US$0.28) per watt, significantly cheaper than last year’s lowest domestic price of 3.9 yuan per watt.
The tender documents for a wind power project of 9.1 million kilowatts in Inner Mongolia, the lowest price offered by companies submitting tenders was 2.15 yuan per watt, with the highest being 2.7 yuan per watt – a pattern likely to be repeated across the market.
Meanwhile stateside, the US Department of Energy reported the average installed cost of wind projects in 2021 was US$1,500 per kW, or US$1.50 per watt (10.8 yuan). This marked a drop of more than 40 per cent from its peak in 2010. The costs between 2018 and 2021 stood at around US$1,600 per kW.
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In 2022, the average installed cost decreased further to US$1,370 per kW, according to the Land-Based Wind Market Report published in August by the energy department.
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