According to the development planning of new energy to be released, which is part of the Chinese Government 12th five-year plan, wind power will be of strategic importance to the energy development. The scale of wind-power development will be enhanced and electricity tariff mechanism will be improved.
After raising a tariff off-grid connected photovoltaic power, it is expected that the Government will show support to the pricing mechanism of offshore wind power to stimulate another round of development of offshore wind power.
Additionally, there will be a new strategic planning of the wind market; a transition from the concentrated development of the three regions of North Eastern, North Western, and North China to the synchronous development of grand bases, areas with most wind speed offshore wind power and distributed clean energy. Overall, China's wind power industry has entered a crucial period and its focus is shifting from speed and size to quality and efficiency.
The development of China's wind power industry is entering a steadier growth phase. In May, the National Energy Administration hosted the Wind Power Development Conference in Nantong, Jiangsu Province, and the target installed capacity of wind power during the 12th five-year plan is set to be more than 100 gigawatts.
According to the National Energy Administration, 38.6 billion kilowatts of wind power was generated by wind power in China in the first six months of 2011; a year-on-year increase of 61%, which exhibited the fastest growth among all the energy sources in China.
The Chinese Government has laid down a series of industrial standards, aiming to emphasize product quality and efficiency, instead of only blind capacity expansion. We believe higher industry standards and barriers of entry will favor the more competitive players.
Ming Yang's development strategy is put product quality and efficiency first, with the focus on technology and product reliability. Our revenue recognition is based on-grid connection, and we strive for stable and healthy development. With Ming Yang's unique competitive advantages, we believe that our market share can be further increased during industry consolidation.
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