Chasing the Power of Wind in Asia - 9/21/06

China and India are moving forward in the process of trying to further them in the development of wind power.  In Australia, however, restrictions are hindering the process and leaving them behind.  The market in Australia was good until about one year ago.  Companies are now looking for different opportunities.  CLP Holdings of Hong Kong have ceased $400 million projects in Australia, deciding to go with China and India. 

There has been a struggle to get this up and running due to global oil prices staying above $50 a barrel for over the last 15 months.  China mainly uses coal and is trying to cut pollution.

China had a 66% increase of wind energy capacity since 2005.  In comparison, Germany had an increase of only 11%.  Germany is the world’s largest wind market.  China has a capacity of 1,260 megawatts right now and plans to increase another 2,000 megawatts.  This is what is making China more eye-catching.  By 2010, China is planning to increase to a target of 5,000 megawatts. 

Other countries are trying to keep up, however in Japan, for example, a plan to triple the use of wind power is being undermined because power surges from wind farms could be disruptive.  Japan does not have a national grid to take care of such fluctuations.

By Angela Macdonald-Smith
Bloomberg News
Published: September 20, 2006

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