Gamesa%20Wind%20Turbine.jpgSpain's Gamesa, the world's second largest wind energy company, is making a big bet on China with investments totalling €60m planned for the next few years.

The investment will be split between boosting production at four Chinese manufacturing facilities and investing in new wind farms. The Spanish company will install a total of 1,800MW of new capacity in four Chinese provinces starting in 2009, according to Cinco Dias (Spanish).

To date, Gamesa has installed 600MW of wind power in two provinces, Jilin and Shandong,so the new investment represents a big boost for the Spanish company, which claims to be the leading western wind turbine maker in China.

The company only entered the Chinese market last year, taking advantage of the new impetus given to renewable energies by the state and provincial governments. The company hopes to take 30% of the wind power market in China up until 2020, which would mean installing around 40,000MW of capacity.

Nevertheless, a lot can happen in 12 years and we believe that Gamesa will have to work hard to keep its lead in this market, not least because of the threat posed by home-grown manufacturers. While their presence is currently small and their technology relatively primitive, renewable energy is seen as a strategic sector and as it grows to take a bigger share of the energy mix, the government is likely to introduce measures to promote home-grown players over the foreign intruders.

As well as satisfying national pride, such moves make economic sense. CCID Consulting, a HK-based consultancy, argues that if all of China's wind turbines were m made by Chinese manufacturers, the cost of generating electricity from wind would fall 30%.

More on Gamesa in these stories.

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