China is expected to maintain its leading position in the wind power industry with an annual installed capacity of 23GW in 2016, according to a GlobalData report.

The report titled, ‘Chinese Wind Installations took the Global Wind Market to a Record Height in 2015‘, discusses the country’s dominating position last year when Chinese wind installations represented approximately half of the global numbers with a total installed capacity of 30.5GW. The country outperformed the US (8.6GW), Germany (6.1GW), Brazil (2.6GW), and India (2.6GW).

Encouraged by a robust regulatory environment, low average turbine prices, and transmission infrastructure development, the country is expected to continue its reign as the largest global market for capacity additions.

Chinese authorities have set a target of 250GW of wind power by 2020 in the 13th Five Year Plan and have also announced a cut in the wind energy benchmark tariffs to promote wind energy over coal power generation. According to the country’s Wind Energy Technology Roadmap 2050, it is anticipated that the wind power capacity will continue to expand to reach 200GW by 2020, 400GW by 2030 and 1,000GW by 2050.

China’s power grid, however, continues to face issues regarding wind power output, system load, power source structure, regulation capability, power transmission scale and operation methods. These constraints have forced the government to delay approving new wind power projects, mainly in Inner Mongolia, Jilin, Heilongjiang, Gansu, Ningxia and Xinjiang, in 2016.

Globally, the wind installation market is expected to contract by 10.2% in 2016, though China is poised to continue its successful streak, predicts GlobalData. The country is also expected to gain in the offshore installation segment with many projects about to start operations in the coming years and will be one of the top two global leaders in the category, after Germany.