China Undertakes Renewable Energy Projects to Boost Economy
The coronavirus continues to exact a terrible toll on human lives around the world.
It has caused a lot of problems. And global supply chains have come to a grinding halt.
Unfortunately, we are still in the clutches of the virus here in the U.S.
But that’s no longer the case in China. Life is returning to “business as usual.”
In order to jump-start its supply chains, China is focused on 25 “super projects.”
And those projects are in none other than the renewable energy sector.
Harvesting the Wind
The first two super projects were recently announced by China’s state-owned energy giant, China Three Gorges. These will be 1.4-gigawatt (GW) and 800-megawatt (MW) offshore wind farms.
The rest of the projects consist of onshore and offshore wind farms, as well as land-based solar farms located across 14 different provinces.
The government plans to spend 58 billion yuan (about $8.19 billion) on these wind and solar farms. The construction will also provide jobs for about 17,000 Chinese workers.
With these plans in place, China is undertaking a huge expansion of its offshore wind program. It’s quickly passing Germany and the U.K. in wind installations.
As a result, China will become the world’s largest market for ocean wind installations.
But it’s not the only country where offshore wind is gaining traction…
Here in the U.S., we also have huge offshore wind energy resources.
And they have the potential to produce more than 2,000 GW of power. That’s nearly double the electricity use of the entire country!
Today, there are 15 active leases for commercial offshore wind projects. If all are fully built, the U.S. could add up to 25 GW of offshore wind.
This is just the beginning. Nearly every Atlantic coastal state wants to get in on the offshore wind action.
And many have set aside tax-free zones near ports in order to lure wind component companies into setting up operations there.
Bigger and Better
Offshore wind projects are taking off in more ways than one. New turbine technology is hitting unprecedented levels.
China’s Dongfang Electric is developing a 10-MW turbine unit. Once installed, it will be the most powerful wind turbine in the Asia-Pacific region.
Other wind turbine manufacturers are also going big. GE Renewable Energy, a division of GE (NYSE: GE), offers its Haliade-X, a 12-MW offshore wind turbine.
The Haliade-X reaches a whopping 850 feet. For context, that’s almost as tall as the Eiffel Tower or Chrysler Building!
The bigger the turbine, the more power it can produce. This means that just one of GE’s Haliade-X turbines can provide enough electricity to power more than 16,000 homes. And a 750-MW wind farm can light up more than 1 million residences.
Generators that produce more power mean fewer turbines are needed in the wind farm. And that means lower overall costs for wind farm owners.
It’s clear that offshore wind is growing in many parts of the world, including Europe, China and the U.S.
Money is flowing out of oil and into solar, wind and energy storage.
This represents an excellent investment opportunity for savvy investors. Not just for 2020, but for the next decade.
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