Core Insights - The termination of the 50% VAT refund policy for onshore wind power marks a significant shift in China's wind power industry from "policy support" to "market competition," prompting a transformation across the entire industry chain [1][2] - The offshore wind power tax support policy will continue until the end of 2027, reflecting the different development stages and needs of onshore and offshore wind sectors [2] Industry Transition - As of August 2025, China's cumulative wind power installed capacity reached 580 million kW, accounting for approximately 11% of total electricity consumption, indicating wind power's evolution into a key energy source [1] - The removal of tax incentives is seen as a necessary step towards industry maturity and policy optimization, as the need for such incentives has significantly decreased with the industry's growth [1] Cost Pressure and Transformation - The cancellation of tax benefits is expected to increase tax costs for onshore wind companies, potentially raising the levelized cost of electricity (LCOE) by 1% to 5%, depending on various factors [3] - The industry is shifting focus from price competition to comprehensive evaluations of LCOE, with offshore wind power becoming a high-stakes arena for assessing corporate capabilities [3][5] Technological Advancements - Leading companies are already leveraging technological innovations to enhance efficiency, such as the development of new technologies that reduce costs and improve operational efficiency [4][5] - The industry is moving towards a more refined and efficient operational model, emphasizing lifecycle cost management and optimization across all project phases [5] Global Expansion - With domestic market pressures increasing, international expansion has become essential for sustained growth, as evidenced by the low percentage of Chinese wind turbine manufacturers' revenues coming from overseas [6] - Chinese wind power companies are expected to leverage their cost and technological advantages to accelerate global market penetration, with several leading firms already making significant strides in international markets [6][7] Market Valuation Shift - The transition from being mere equipment suppliers to comprehensive global renewable energy solution providers may reshape market valuation logic for wind power companies, emphasizing stability and risk resilience [7]

Core Insights - The termination of the 50% VAT refund policy for onshore wind power by November 1, 2025, marks a significant shift in China's wind power industry from "policy support" to "market competition" [1][2] - The offshore wind power tax support policy will continue until the end of 2027, reflecting the different development stages and technological requirements of onshore and offshore wind power [1][2] Industry Transition - The end of the decade-long policy benefits indicates the maturity of the industry and the necessity for policy optimization, as onshore wind power has become a crucial part of the energy supply, contributing approximately 11% to the total electricity consumption [2] - The shift from broad-based support to more precise incentives aims to prevent excessive reliance on policy assistance and encourages a focus on key technological breakthroughs [2] Cost and Efficiency Challenges - The cancellation of tax incentives is expected to increase tax costs for onshore wind enterprises, potentially raising the levelized cost of electricity (LCOE) by 1% to 5% [4] - The cost pressure is transmitted throughout the industry chain, affecting manufacturers, service providers, and project developers, with a notable impact on smaller manufacturers [4][5] Technological Advancements - Leading companies are already leveraging technological innovations to enhance efficiency, such as the development of new technologies that reduce costs significantly [5] - The focus on improving LCOE will drive companies to optimize project planning, construction, and maintenance processes [5] Global Expansion - As domestic market profits decline, international expansion has become essential for sustained growth, with significant potential in overseas markets [7] - Chinese wind power companies, having honed their skills in the domestic market, are well-positioned to leverage their cost and technological advantages for global competitiveness [7][8] Market Valuation Shift - The transition from being mere equipment suppliers to comprehensive global renewable energy solution providers may reshape market valuation logic for wind power companies [8] - This shift towards diversified services and stable income streams enhances resilience against industry fluctuations and demonstrates stronger overall capabilities [8]