Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 66
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seas supply (the procurement of which was
impacted by the COVID-19 pandemic) are
being resolved. Project developers in China
had been facing a profit margin pressure as
they struggled to reduce development costs
while the Chinese government reduced the
tariff and subsidies, but this issue is being
mitigated by a downward trend in the pricing
of raw materials of wind turbines.
With the continuous development of offshore wind power in China, the location of
offshore wind farms will be increasingly far
from shore, increasing complexities and
costs (although certain local governments
provide subsidies for projects in deep water
and far from shore)22 . Against this background, foreign developers with a good
track record in the development of projects
in deep water and far into the sea may have a
significant competitive advantage compared to local players.
China
FURTHER READING
"New offshore wind power installations fall
by 60% in 2022", published by Caixin China,
on 16 March 2023
(https://www.caixin.com/2023-03-16/102008630.html);
"2023 Offshore Wind Power Industry Indepth Study - Offshore Wind Power Projects
Will See A Accelerated Construction Period",
published by Guolian Securities on 3 February 2023
(https://www.vzkoo.com/read/2023020362c8f444f03215c
4fb28706c.html);
"China’s Renewable Power Installations to
Maintain Robust Growth in 2023", published
by Fitch Ratings on 2 February 2023
(https://www.fitchratings.com/research/corporate-finance/
chinas-renewable-power-installations-to-maintain-robustgrowth-in-2023-02-02-2023);
"In-depth Report of Wind Power Industry",
published by Shanxi Securities on 12 January
2023
(https://pdf.dfcfw.com/pdf/H3_AP202301121581907817_1.
pdf?1673520908000.pdf);
"The Bidding Volume in 2022 Exceeds
Expectations and the Performance of Wind
Power Equipment Company is Expected to
Rebound in 2023", published by Zheshang
Securities on 10 January 2023
(http://stock.finance.sina.com.cn/stock/go.php/vReport_
Show/kind/search/rptid/726692864048/index.phtml).
22 For instance, Shanghai Municipal Government will provide an incentive of RMB 500 per kilowatts for offshore wind power in deep water and offshore
wind power of which the wind farms locates at a distance of 50 km or more from the shore. See the Notice on the Issuance of the "Supportive Measures of
Shanghai Regarding the Renewable Energy and New Energy Development Special Funds", published on 15 December 2022 by Shanghai Provincial Development and Reform Commission and Financial Bureau.
