As reported on American Public Radio’s Marketplace, China hopes to drive down the price of wind turbines through mass production and cheap labor. The goal is to bring economies of scale to wind turbine production, thereby reducing costs and making wind generated electricity competitive with coal-fired electricity. (For more information on electricity generated via coal-fired power plants see this earlier post). China’s massive work force and cheap labor may enable it to apply a similar model to wind power as the Chinese have used on mass-produced consumer goods. This approach could result in wind turbines that are fraction of current costs.

Just as in the United States’ stimulus plan, the  $586 billion (USD) Chinese bill focuses significantly on sustainable energy. Wind plays a major role in China’s sustainable energy plans. Wind power is state controlled in China and a key component of the government’s attempt to reduce its consumption of coal. Currently China generates nearly 80% of its electricity from coal, which is plentiful throughout the country. According to Thomas Kostigen’s You Are Here, China builds a coal-fired power plant “every four days.”

According to Marketplace, the economic slowdown has not negatively impacted China’s renewable energy market. Investing in wind turbines is seen as a strategic move. Chinese energy demand grows substantially every year. Marketplace correspondent Scott Tong says “To try to wean itself off coal, China subsidizes renewable sources like wind.” It is anticipated that once the Chinese have mastered the production of wind turbines, it could produce them at half of today’s cost; what is referred to as the China price. Tong goes on to state that “The whole point [of mass producing wind turbines] is to get cheap enough to compete with coal, oil, or gas.”

- Eric Wilson