- China restricts new wind power in parts where turbines idle
- Halted wind power output rose 69 percent last year from 2014
Huaneng Renewables Corp., a Chinese operator of wind farms, surged in Hong Kong, leading gains in wind power stocks after China began limiting where new turbines can be added in order to reduce idled capacity.
Huaneng jumped as much as 8.3 percent to HK$2.36, and traded at HK$2.33 as of 11:17 a.m. local time in Hong Kong on Friday. China Longyuan Power Group Corp., the nation’s biggest developer of wind farms, also rose as much as 8.3 percent to HK$5.49.
China is clamping down on the ability of local authorities to plan new wind-power projects in regions including the northern provinces of Inner Mongolia, Jilin, Heilongjiang, Gansu, Ningxia and Xinjiang, slowing the expansion of the industry to a pace manageable for the electricity grid, the National Energy Administration said in a statement on Thursday.
The restriction will “limit the downside” of the industry, said Shi Yan, a Shanghai-based analyst at UOB Kayhian Investment Co. China is “gradually easing the idling capacity so that the situation won’t be as bad as last year.”
Wind installations in China have almost doubled since 2012 to 139 gigawatts, according to data compiled by Bloomberg. The rapid growth of wind power has left the grid struggling to connect all the plants, forcing wind turbines to sit idle.
The issue has hit the windiest parts of China in the north hardest, hampering the ability of the grid to move the power to the most crowded parts of the country. Idle power generation rose 69 percent last year from a year ago to a record 33.9 billion kilowatt-hours, the NEA said in February.
— With assistance by Feifei Shen