Top wind firm’s profits fall even as clean energy booms in China

Xinjiang Goldwind Science & Technology Co., the largest wind-turbine maker, said profit plunged as a price war continues to offset some of the benefits of China’s surge in clean energy investment.

The producer’s net income fell 98% to 9.4 million yuan ($1.29 million) in the three months ended in September compared with the same period a year ago, according to the company’s statement Thursday.

Asia’s largest economy is accelerating deployment of renewable energy as it works to curb emissions and meet rising electricity demand. Though installations are rising, competition is intensifying among China’s wind turbine producers and pushing prices lower.

Clean energy technology manufacturers globally are struggling with rising costs and delays to some projects. Vattenfall AB and Iberdrola SA have already scrapped some developments this year, and the bleak outlook threatens to hamper efforts by Goldwind and other Chinese producers to expand outside their home market. 

China’s wind industry is also a potential new target for scrutiny from overseas trade officials. The European Union warned this month that the sector could merit investigation if producers are regarded as having received too much state aid.

Manufacturers in China are selling turbines about 20% cheaper than western peers, according to BloombergNEF.