China's Groundbreaking Offshore Wind Power Milestone

China's Groundbreaking Offshore Wind Power Milestone

Xiao Weiwei
1 min read

China's Offshore Wind Power Set to Undercut Coal Prices

The Chinese government has approved a groundbreaking offshore wind power project in Shanghai, marking a major shift in the country's renewable energy landscape. This project is set to supply power at a price significantly lower than traditional coal-generated electricity, signaling a significant milestone in China's sustainability efforts and economic landscape.

Key Takeaways

  • China's offshore wind power prices to dip below coal prices in 2024.
  • Shanghai's 306-megawatt wind farm approved at 27% below coal power price benchmark.
  • Project valued at 3 billion yuan, with on-grid tariff at 0.302 yuan per kWh.
  • Offshore wind generation capacity in China expected to triple to 129 gigawatts by 2030.
  • China's renewables market largest globally, but fossil fuels still dominate at 69% of power mix.


China's transition to offshore wind power stands to disrupt the energy sector and financial markets, driven by government policies, technological advancements, and global environmental objectives. The immediate impact will be felt through a decline in coal industry profitability, while long-term implications include accelerated growth in the renewable energy sector. This move solidifies China's position as a leader in sustainable energy, reshaping international markets and influencing global energy policies.

Did You Know?

  • Offshore Wind Power: Offshore wind power involves generating electricity by harnessing wind energy using turbines installed in bodies of water, particularly in coastal regions with limited land availability for traditional onshore wind farms. The technology is strategically positioned in areas with strong and consistent offshore wind speeds.
  • On-grid Tariff: The on-grid tariff for renewable energy sources dictates the selling price of electricity to the national grid. In the context of the Shanghai wind farm, the on-grid tariff of 0.302 yuan per kilowatt-hour (kWh) plays a critical role in the project's economic viability and profitability.
  • Renewable Energy Capacity: The plan to triple China's offshore wind capacity to 129 gigawatts by 2030 reflects the country's ambitious strategy to expand the share of renewable energy in its overall energy mix, reducing reliance on fossil fuels and mitigating environmental impacts.

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