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With rapid development of wind power in China, the following three issues have become barriers for further scale-up: 1) concentration of wind farms in the Three-North region, which became significantly underutilized because of a limited capability of local power grids to off-take and consume wind-generated electricity and because of a lack of coordinated development of long-distance transmission lines to deliver electricity to load centers in the South and East regions; 2) increasing subsidies and, thus, a burden on final consumers; and 3) resistance of local authorities to develop new projects because the new value added tax policy reform. How to deal with these issues will have significant impact on the future development of wind in China. This note proposes a methodology to enhance a comprehensive approach by taking both generation and transmission into account in crafting the development plan and formulating the incentive policies, which may be useful in addressing these issues.

Cost and effectiveness --- Increasing subsidy burden --- Macroeconomics and Economic Growth --- VAT reform impact --- Wind power concentration

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China made impressive progress in developing renewable energy to provide access to clean energy and electricity to its predominantly rural population before the economic boom that followed the open door policy, by improving energy supply to the economy as the country industrialized and urbanized at an extremely fast pace and finally by fighting debilitating local pollution and mitigating the impact of climate change. Through that journey, China has accumulated a considerable amount of experience and learned many lessons. Its evolution from a low-income to a middle-high income country and its wide geographical diversity brought about extensive challenges, many of which are similar to those facing a wide range of developing countries who are willing to further rely on renewable energy to address their energy needs. This report attempts to present the Chinese rich and diversified experience and draw the lessons learned that may inform decision-making in these countries.

Energy --- Energy Efficiency --- Energy Policies and Economics --- Hydro Power --- Hydropower --- International Cooperation --- Renewable Energy --- Solar Energy --- Sustainability --- Windpower