Offshore wind seen catching up to onshore

"From 2012 to 2022, the average power capacity of an offshore wind turbine grew from less than 3 megawatts to more than 7 MW," he said.

According to Luo, although the half-year performance of Chinese wind turbine manufacturers has generally declined, there is a clear trend in offshore wind development and increased export demand against the backdrop of wind turbine upscaling.

Offshore wind will present companies with broad prospects for development amid the trend that wind turbines are built further offshore to maximize power output, as offshore turbine companies plan to make use of the more powerful and consistent wind resources for more efficient power generation, he said.

Considering the fact that offshore capacity is still small compared with onshore, representing just a sliver of the nation's total power mix, the sector has substantial room for further development, he added.

Luo also warned that moving further offshore also means deeper waters, which pose additional challenges, both for engineers and operators.

China overtook the UK to become the nation with the largest offshore wind power capacity in 2021, as many developers stepped up efforts to start projects.

According to the Chinese Wind Energy Association, China's cumulative installed capacity of offshore wind power exceeded 30 million kilowatts by the end of 2022, ranking first in the world for two consecutive years, accounting for about half of the world's total.

The cost of offshore wind power in China had also dropped by nearly 56 percent from 2010 to 2021, with the average kWh cost of offshore wind power projects dropping to about 0.33 yuan ($0.05) at present and is expected to achieve full parity by the end of the 14th Five-Year Plan (2021-25) period, it said.

China has capabilities of independent design, research and development, manufacturing, installation, commissioning and operation for large-capacity offshore wind turbines, said Qin Haiyan, secretary-general of the association.

As China sees its cumulative installed capacity of offshore wind turbines at only more than 30 million kW with utilization rates of less than 1.1 percent, the future development potential is huge, especially considering the fact that China's power load is concentrated in eastern coastal areas while current energy resources are mainly concentrated in the western and northern regions, Qin said.

Many domestic companies are already revving up their efforts. The world's first 16-MW offshore wind turbine off the coast of East China's Fujian province, operated by China Three Gorges Corp, was successfully connected to the grid and began generating electricity in July. With the largest single-unit generating capacity of all turbines in operation worldwide, it is able to generate more than 66 million kWh of clean electricity annually.

Lei Mingshan, chairman of China Three Gorges Corp, said the 16-MW offshore wind turbine is a breakthrough in the core technology of the offshore wind power industrial chain, and it will boost the sustainable development of the country's offshore wind power industry.

Mingyang Smart Energy Group, another major Chinese wind turbine manufacturer, plans to launch a wind turbine that floats on the surface of the ocean, instead of being anchored into the seabed, to tap into wind power in more remote parts of the ocean.

Zheshang Securities' analysts projected annual increased capacity for offshore wind in China to reach 10 GW in 2023 and 15 GW in 2024. The figure for 2025 is expected to grow further to 20 GW, as the cost of wind power is due to decrease, it said.