Trends Outlook for the Wind Power Industry in 2025

Rationalization of Wind Turbine Prices and Continuous Optimization of Industry Ecology

I. Overview

In October 2024, 12 Chinese wind turbine manufacturers jointly signed the “Self-discipline Convention for Maintaining a Fair Competitive Environment in the Wind Power Industry in China,” aiming to curb unfair competition behaviors, such as low-price competition and malicious defamation, through industry self-discipline. This not only helps increase the gross profit margin of wind turbine manufacturers and improve their business conditions but also provides a strong guarantee for technological research and development, as well as investment in product reliability. Taking a central enterprise group’s 2024 onshore wind turbine group procurement project as an example, the average quotation for wind turbines was approximately 1,550 yuan/kW, significantly higher than historical levels, indicating that the trend of wind turbine price recovery has been established.

II. Rural Wind Power and Deep-sea Wind Power Become New Growth Poles

Under the impetus of the rural revitalization strategy, rural wind power is emerging as a new frontier for the wind power industry. The “Notice on Organizing and Implementing the ‘Thousand Villages and Ten Thousand Villages Wind Power Action'” jointly issued by the National Development and Reform Commission, the National Energy Administration, and other departments provides policy guidance for the development of rural wind power. Through the “village-enterprise cooperation” model and the “co-construction and sharing” revenue distribution mechanism, rural wind power not only helps promote the transformation of the rural energy structure and achieve the goals of carbon peaking and carbon neutrality but also brings tangible economic benefits to rural areas. At the same time, the development of deep-sea wind power has also ushered in new opportunities. With the clarification of issues such as sea use norms and cross-sea use rights, as well as the introduction of a series of policies, the development space for offshore wind power has been further expanded. Coastal provinces such as Guangdong, Shandong, and Zhejiang are actively implementing competitive allocation work for deep-sea offshore wind power projects, promoting the maturity of the deep-sea wind power industry chain and driving market development.

III. Upgrading and Transformation Market Enters a Boom Period

 Since the release of the “Management Measures for the Upgrading, Transformation, and Decommissioning of Wind Farms” in 2023, the wind power upgrading and transformation market has witnessed unprecedented development opportunities. In 2024, nearly 30 wind power upgrading and transformation projects were implemented nationwide, resulting in a total installed capacity of over 3.6 GW following the transformation. With the gradual decommissioning of old wind farms and the promotion of the “replacing small with large” policy, the upgrading and transformation market is expected to continue expanding. This not only helps improve the power generation efficiency and operational stability of wind farms but also provides new growth points for wind power equipment manufacturing enterprises.

IV. Accelerated Entry of New Energy into the Market and Continuous Improvement of Market-oriented Mechanisms

In recent years, significant progress has been made in China’s power market, with the new energy entering the market accelerating. With the expansion of the power market transaction scale and the pilot promotion of the spot market, new energy power generation entities are gradually integrating into the market system. Although new energy participation in spot market transactions faces certain challenges, such as revenue uncertainty, overall, market-oriented mechanisms help promote the sustainable development and consumption capacity of new energy. As more new energy power generation entities participate in market transactions, the price of new energy power will more accurately reflect market supply and demand, as well as the value of electricity itself. With the gradual decommissioning of former wind farms and the advancement of the “replacing small with large” policy, the market for wind farm upgrading and transformation is expected to continue expanding. This not only enhances the power generation efficiency and operational stability of wind farms but also provides new growth opportunities for wind equipment manufacturing enterprises.

Six. Deep integration of green electricity and hydrogen-based energy, promoting the energy transition process

In the post-evaluation stage, the project team needs to conduct a comprehensive assessment of the project’s economic, social, and environmental benefits. By comparing the actual operation data of the project with the expected goals, the success rate and return on investment of the project can be evaluated. Since the release of the “Management Measures for the Upgrading, Transformation and Decommissioning of Wind Farms” in 2023, the market for wind farm upgrading and transformation has witnessed unprecedented development opportunities. In 2024, nearly 30 wind farm upgrading and transformation projects were implemented nationwide, resulting in a total installed capacity of over 3.6 GW following the transformation. With the gradual decommissioning of old wind farms and the advancement of the “replacing small with large” policy, the market for upgrading and transformation is expected to continue expanding. This will enhance the power generation efficiency and operational stability of wind farms. What is more, it will also provide new growth opportunities for wind equipment manufacturing enterprises.

Seven. Strong momentum of “technology going global” in wind power, accelerating international layout

In recent years, Chinese wind power enterprises have demonstrated a strong momentum in expanding globally. Not only has the export volume of wind turbine equipment continued to grow, but it has also gradually shifted towards partial capacity exports and the improvement of international supply chain levels. Through the approach of “technology going global and localized operation,” Chinese wind power enterprises are actively exploring international markets, promoting the development achievements of China’s wind power industry to benefit the world. At the same time, domestic wind turbine equipment enterprises are also strengthening their  presence by establishing overseas companies and production bases. So it thereby will enhance their international operational capabilities and market competitiveness.

In 2024, the wind power industry achieved remarkable results in technological innovation and market expansion. Looking forward to 2025, driven by trends such as the rationalization of wind turbine prices, the emergence of rural and deep-sea wind power as new growth poles, the explosive growth of the upgrading and transformation market, the accelerated entry of new energy into the market, the deep integration of green electricity and hydrogen-based energy, and the strong momentum of “technology going global” in wind power, the wind power industry will face even broader development prospects. However, in the face of complex and volatile international economic situations and fierce market competition, wind power enterprises still need to maintain a clear mind. We need to strengthen technological innovation and industrial upgrading, and continuously enhance their competitiveness and sustainable development capabilities. Only in this way can they remain invincible in future market competition and make greater contributions to promoting global energy transition and sustainable development.

Supplier

Luoyang Fonyo Heavy Industries Co., Ltd, founded in 1998, is a manufacturer in cast railway parts. Our factory covers an area of 72,600㎡, with more than 300 employees, 32 technicians, including 5 senior engineers, 11 assistant engineers, and 16 technicians. Our production capacity is 30,000 tons per year. Currently, we mainly produce casting, machining, and assembly for locomotive, railcar, high-speed trains, mining equipment, wind power, etc. Our products have been exported to Russia, the United States, Germany, Argentina, Japan, France, South Africa, Italy and other countries.
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