Business
China’s Wind-Turbine Giants Pledge to End Price War in a Bid for Industry ‘Self-Discipline’ and Sustainable Growth
Manufacturers of wind turbines in China commit to 'self-regulation' in a bid to cease price conflicts. A dozen industry frontrunners mirror solar equipment producers in reaching a consensus to halt their harmful strategy of price slashing.
Prominent wind-turbine producers in China have vowed to terminate the longstanding price competition in the sector, echoing a recent commitment made by the nation's solar-panel industry.
At a conference in Beijing on Wednesday, twelve prominent players, such as Goldwind, Envision, Mingyang Smart Energy, Shanghai Electric, and Dongfeng Electric, pledged to enhance their self-regulation in terms of pricing and to steer clear of price-fixing.
The wind-energy sector is suffering due to pricing wars, which are negatively impacting manufacturers' profits and impeding the industry's eco-friendly growth. This has led to most businesses incurring losses, according to Qin Haiyan, the leader of the China Wind Turbine Association.
"Wind energy is a sophisticated and efficient source of power, with wind turbines being a significant and long-term investment," stated Lou Yimin, the Senior Vice President and Head of the wind-turbine department at Envision Energy. "It's crucial to adopt a forward-thinking approach and concentrate on the profitability over the entire lifespan of 25 to 30 years," he added.
He expressed his optimism that the industry would resume a course of robust growth and reasonableness through the collective commitment.
The news was revealed subsequent to the 780-member China Photovoltaic Industry Association's gathering in Shanghai on Monday. During the meeting, firms such as Longi Green Energy, Tongwei, and JinkoSolar agreed to stop any form of "unhealthy" rivalry.
Last year, China was the global leader in the expansion of wind and solar capacity, contributing 76 gigawatts (GW) of wind capacity, which makes up 66% of the world's total, and over 60% of the global 425GW of solar photovoltaic (PV) capacity, according to a report released by the International Energy Agency (IEA) on Wednesday.
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