Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 45
Offshore Wind Worldwide 2023
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, which made developers rush to get their wind farms connected
to the grid before the cut-off point for subsidies and partly explains the record-high offshore wind power installed capacity in 2021.
Despite the termination of central government subsidies at the end of 2021, provincial subsidies stepped in subsequently. To
date, Shanghai, Guangdong, Shandong, and
Zhejiang have adopted provincial subsidies
of various forms and standards for offshore
wind power projects.12
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This project has supplied 3.5 billion kWh of
green electricity as of March 2023. Further to
their cooperation on the Dongtai V offshore
wind farm project, on 6 April 2023, China
Energy Investment Corporation and EDF
Group reached an extended agreement to
construct a new offshore integrated smart
energy island demonstration project.13
As the location of offshore wind farms is
moving increasingly far from shore, 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.
The participation of foreign developers in
the Chinese market has been quite limited
to date but it is expected that China will
encourage foreign developers to participate
in this market to make offshore wind power
projects more sustainable and competitive
and allow the Chinese government to reach
its ambitious goal of achieving carbon neutrality by 2060. For example, on 20 November 2021, a foreign-invested offshore wind
power project started supplying electricity
to the grid (the 200 MW Dongtai V offshore
wind farm, participated by the EDF Group).
12 "Review of Subsidy Policies for Offshore Wind Power Prices in Local Regions", released by Chinese Wind Energy Association on 3 February 2023
(https://news.bjx.com.cn/html/20230203/1286287.shtml).
13 "China Energy Investment Corporation And EDF Group Reached An Extended Cooperation Agreement - Offshore Integrated Smart Energy Island Settled In Dongtai", released by Dongtai Municipal People’s Government on 10 April 2023 (https://www.dongtai.gov.cn/art/2023/4/10/art_7588_3985533.
html).
