Core Viewpoint - The "Thousand Villages and Ten Thousand Villages Wind Action" aims to enhance wind power development in rural areas, utilizing idle land to increase income for village collectives while addressing various challenges in policy, land security, resource assessment, and mechanism design [2][4]. Group 1: Project Overview - As of September 2025, over 15.5 million kilowatts of "Wind Action" projects have confirmed investment entities [1][3]. - China's rural wind energy resources are abundant, with the actual potential of onshore wind energy at 5.9 billion kilowatts, while the installed capacity in 2024 was only 521 million kilowatts, representing about 9.5% of the technically exploitable resources [3]. Group 2: Land Use Challenges - Land use is a critical issue for rural wind power development, with each wind turbine requiring approximately 2,000 square meters of land during construction due to additional infrastructure needs [6][7]. - Current land policies impose restrictions on converting rural land to construction land, leading to a preference for using scattered idle land for wind power projects [6][9]. Group 3: Revenue Model Development - Prior to the "Wind Action," rural wind power projects were smaller in scale compared to solar projects, primarily developed by state-owned enterprises due to high investment and lengthy approval processes [11]. - A partnership model is emerging where village collectives co-invest in wind projects, allowing them to receive fixed annual returns for community development and infrastructure [12][13]. - Four main revenue models have been identified: collective shareholding, resource exchange for infrastructure improvement, diversified land revenue, and local employment generation [12][13].

Core Viewpoint - The "Thousand Villages and Ten Thousand Towns Wind Action" aims to enhance wind power development in rural areas, utilizing idle land to increase collective income for villages while exploring new investment and revenue-sharing models [1][2]. Group 1: Project Development and Scale - By September 2025, over 15.5 million kilowatts of "Wind Action" projects have confirmed investment subjects [2]. - China's onshore wind energy potential at 150 meters height is approximately 590 billion kilowatts, while the installed capacity in 2024 is only 52.1 billion kilowatts, representing about 9.5% of the technically exploitable resources [2]. - Rural areas in central and eastern China are expected to be the main battleground for future wind power growth [2]. Group 2: Land Use Challenges - Land use is a critical challenge for rural wind power development, with a single wind turbine requiring approximately 2,000 square meters of land during construction [3][4]. - Current land policies impose restrictions on converting rural land to construction land, leading developers to prioritize scattered idle land [3]. - The construction of wind turbines must consider various factors, including distance from residential areas and transportation logistics [4]. Group 3: Revenue Models and Community Involvement - Prior to the "Wind Action," rural wind power projects were smaller in scale compared to solar projects, primarily developed by state-owned enterprises due to high investment and lengthy approval processes [7]. - A 6.25-megawatt wind turbine project has an estimated dynamic investment of about 40 million yuan, with a project lead time of around six months [7]. - Various revenue-sharing models have emerged, including collective shareholding, resource exchange for infrastructure improvement, diversified land revenue, and local employment generation [8][9].

Summary of Wind Power Industry Conference Call Industry Overview - The conference call focused on the wind power industry, particularly offshore wind projects in China, with expectations for concentrated approvals and construction starting from late 2023 to early 2024 [1][3][12]. Key Points and Arguments - **Market Dynamics**: The offshore wind power sector is anticipated to receive a significant boost from upcoming approvals and the introduction of deep-sea planning, which will positively impact the wind power segment [1][3]. - **Price and Profitability**: It is expected that the average selling price (ASP) and gross margin for domestic wind power machinery will recover in the second half of 2025, with a projected increase in bidding prices for onshore wind turbines by 5% to 10% from October 2024 to June 2025 [1][5]. - **Installation Capacity**: The total bidding volume for 2025 is estimated to be between 130GW and 140GW, a year-on-year decrease of approximately 20%, but still at a high level. The industry installation capacity is projected to be around 127GW in 2025, with a potential recovery in profitability for onshore wind companies by 2026 [1][7][8]. - **International Orders**: There is an expectation for record-high new overseas orders in 2025, with delivery cycles typically ranging from 2 to 3 years. This is expected to significantly enhance manufacturing profits for companies like Goldwind Technology, which has seen better-than-expected performance in its overseas business [1][9]. - **Electricity Pricing**: As the proportion of existing wind power projects increases, the average grid connection price is expected to slightly decline, impacting profit margins. However, companies remain optimistic about developing and constructing power station projects [10]. Additional Important Insights - **Valuation Concerns**: There have been discrepancies in the market regarding the valuation of wind power machinery companies, but the increasing share of manufacturing profits is expected to positively influence overall valuations in the coming years [11]. - **Emerging Markets**: Chinese companies are projected to dominate the onshore wind installation market in emerging countries, with an expected market share of 80% to 90% by 2030 due to competitive pricing and growing product recognition [3][20]. - **Competitive Landscape**: The wind power industry has seen increased concentration, with the top five companies holding a market share of 75% in 2024, up from 65% in 2020. This concentration is expected to reduce price competition and improve profitability [15][23]. - **Raw Material Prices**: The prices of black raw materials have slightly decreased, which could positively impact the profitability of machinery and component manufacturers in 2026 if the trend continues [16][17]. Conclusion The wind power industry in China is poised for growth, driven by upcoming project approvals, increasing international orders, and a recovering pricing environment. The competitive landscape is shifting towards greater concentration, which may enhance profitability for leading companies. The long-term outlook remains positive, particularly in emerging markets where Chinese firms are expected to gain significant market share.