On August 10, 2008, the PRC Ministry of Finance issued the Provisional Measures on the Administration of the Special Fund Supporting the Industrialization of Wind Power Equipment, Cai Jian No. 476 (2008), the Measures) to accelerate the development of China’s wind power industry and encourage technology transfers.
The Ministry of Finance will establish a Special Industrialization Fund to support domestically controlled or wholly owned enterprises manufacturing wind power machines and equipment (including spare parts such as blades, gear cases, generators, converters, and bearings) within China. The fund will be distributed to qualified enterprises in the form of award grants, in order to encourage them to develop marketable products. The grants must be used for the research and development of new wind power technology.
The criteria for receiving a Special Industrialization Fund grant are:
- The enterprise must possess proprietary intellectual property rights over core or key technology (including trademarks registered in China);
- The capacity for an individual wind turbine must be 1500 kW or more;
- The wind turbines must be accredited by the China General Certification Center in Beijing;
- The wind turbine blades, gear cases, and generators must be manufactured by domestically controlled or wholly owned enterprises, and the converters and bearings manufactured by domestically controlled or wholly owned enterprises;
- If an enterprise applies for grants for various types of products using the same technology, the differences in the capacity of the products must be 500 kW or more;
- The wind turbines must be manufactured, installed, and adjusted domestically. They must be able to operate without any breakdowns for over 240 consecutive hours, and they must pass their owners’ inspection.
To apply for a Special Industrialization Fund grant, enterprises must submit their applications to the provincial or regional finance bureau in which they are located. The application and materials shall be submitted to the Ministry of Finance before September 30 of each year, after preliminary examination at local level. Applicants must submit complete sets of documentary evidence for the proprietary intellectual property rights described above (including design calculations, design prints, technical requirements, quality control documents, etc.), certification records, sales and purchase contracts and invoices for wind turbines, spare parts, and other materials as required.
Half of the grants will be awarded to manufacturers of entire machines. If approved, the applicant will be granted 600 RMB per kW for the first 50 sets of megawatt wind turbines that they develop and industrialize. The other half of the grants will be awarded to manufacturers of key spare parts, with preferential treatment given to manufacturers of converters and bearings, and the amounts awarded to them will be determined according to cost percentages.
The Measures were issued in accordance with the Renewable Energy Law of the PRC, the State Council Guidelines on Accelerating Development of Equipment Manufacturing (Guo Fa No. 8 (2006)), and the Administrative Measures on the Special Fund Supporting Renewable Energy Development (Cai Jian No. 237 (2006)).