(Bloomberg) -- Chinese wind firms are looking to export turbines to developing nations amid challenging trade and regulatory environments in larger markets in Europe and the US, executives said at the BloombergNEF Summit in Shanghai.
China is home to many of the largest turbine producers, which until recently have been mostly focused on the domestic market, the world’s biggest. With installations at home plateauing, companies are set to boost exports to a record of more than 2 gigawatts of turbines this year, according to BloombergNEF.
Companies are focusing on markets like the Middle East, Central Asia, South America and Southeast Asia, said Yu Yong, chief executive officer of Windey Energy Technology Group Co.’s international division. Markets in the US and Europe may be larger, but pose challenges in terms of regulations and labor rules, not to mention rising trade tensions, said Li Sisheng, head of new energy and power at Power Construction Corp. of China’s international arm.
“In the past we tried to go to the US and EU, but after several years we found that these markets are not suitable for us,” Li said at a panel discussion on Tuesday. “That’s why we position ourselves to serve developing countries.”
Chinese firms benefit from integrated supply chains that allow them to offer turbines at costs about 28% below Western competitors, according to BloombergNEF. The country’s manufacturers have also eclipsed US and European firms in terms of making the world’s largest offshore turbines.
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