Offshore Wind Worldwide 2022 edition - Flipbook - Page 48
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VII. Other
A. Local rules and policies
When planning and building offshore wind
power projects in China, special
consideration needs to be given to the local
rules and policies in the province where the
project is located.
B. Local content requirement
There are no localisation requirements with
respect to the investment in offshore wind
power projects as well as the procurement of
wind power equipment in China.
As illustrated above in section I.A., 100%
foreign ownership of wind power projects is
permitted. With respect to the utilisation of
wind power equipment, China used to
implement in the past a local content
requirement which imposed a minimum
local content of 70% in terms of domestically
manufactured equipment, according to a
document issued in 2005 by the NDRC,
specifying that a wind power plant failing to
fulfil this requirement was not allowed to be
constructed. However, this restriction was
finally cancelled by the NDRC in 2009. On
23 December 2010, the NDRC issued the
Circular on Promoting the Healthy and
Orderly Development of the Wind Power
Equipment Industry, explicitly providing
that the bidding and procurement of wind
power equipment must be carried out in
strict accordance with the Tendering and
Bidding Law of the People’s Republic of
China and related regulations and exclusive
conditions cannot be set.
Hogan Lovells
China
C. EHS requirement
In addition to the laws and regulations
specifically applicable to wind power projects
(such as the Wind Power Interim Measures,
Offshore Wind Power Measures, etc.), the
general regulations on environmental
protection and safety (such as the
Regulations on Administration of
Construction Safety and the Marine
Environmental Protection Law), applicable
to any construction projects, should also be
paid attention to.
D.Potential market risks for offshore
wind power project development
The installation of offshore wind power
projects is expected to experience a decline
in 2022. Since the Healthy Development
Opinions provide that the central
government does not make subsidies
available to newly installed offshore wind
power projects, except for the existing
offshore wind power projects which have
obtained the required project approvals and
for which grid connection has been
completed prior to 31 December 2021,
project developers and investors were
rushing to commission their projects before
the end of 2021 and new installations are
expected to decline from 2022.
On the procurement side, the COVID-19
pandemic is expected to continue to cause a
shortage of key parts such as blades and
main bearings that rely on overseas supply,
creating possible delays to the project
timeline. Project developers in China are
facing a profit margin pressure as they
struggle to reduce development costs while