The Research For The Development Of Chinese Wind Power Industry Based On SCP Model

As we known, as the result of the rapid development in economy, China now is one of the greatest countries in energy resource consumption in recent years. Every kind of new energy recourses are being actively exploitated nationwide. Among them, Wind power as a representative of the renewable resources, has become the main way and represent the developmental direction of the energy shortage need to be relieved. Wind power plays an increasingly important role in the structure of energy.Since mid-1980, NRC released a series of policies to support the development of wind power. So, the industry of wine power was established; its market has been expanded; demand and supply become steadily increased; finally, the great influence become obvious and Industry members also see the hope of the development of wind power. However, too many problems are emerging during the process of the development.SCP method form Industrial Economy will be used to analyses the whole industry, especially analyses the market structure, market conduct and market performance. The author of would try to find the regular pattern and the problems hidden in the process of development. Based on the idea, the author of this article pulls out some industrial policies to promote the wind development.This article provides an overview of the history and current situation of the development of Chinese wind power industry, and analyzes four critical factors, including market concentration, product differentiation, economies of scale, entry and exit barriers, which determine the structure of wind power industry. Author believes that the market has evolved into an oligopoly market, showing some characteristics, such as the high degree of market concentration, shallow product differentiation, little barriers to entry, big barriers to exit and so on.And as the result of incentives from government policies, the wind power industry has over-developed, finally the size of the market economy has been gradually transformed into the market diseconomies of scale.In this kind of market structure, market participants have showed many of typical market behaviors in the sides of financing, pricing, technology development and upstream and downstream integration of industry chain.For instance, many enterprises were keen on the price war, the active development for the new technology of wind power, and the expansion of industrial scale. It is such a market structure and the double impact of the wind power market behavior of enterprises that, on the one hand, have caused the wind power industry to reduce the profitability and efficiency of resource allocation, on the other hand, promoted the technological progress and industrial development of wind power.Based on this, author puts forward the policy recommendations, inculding a smooth channel to get through the industry chain, repositioning and adjustment of industrial policy to improve the degree of market, establishment of the sound industry competition mechanism and the crucial transformation of the industry.