Wind power market to lose puff this year

China's wind market bubble will deflate as the industry enters the worst year in its history, said the Spanish wind turbine maker Gamesa.

"The first half of 2012 is the worst time in the last four years, triggering a faster industry consolidation," said Jorge Calvet, chairman of the company.

Even though China consolidated its position as the world's wind power leader in both newly and cumulative installed capacities in 2011, with 18 gigawatts of wind turbines installed, that was down 6.9 percent year-on-year.

As a result of the slowdown, Gamesa received no orders in the first quarter of 2012.

"We will see even faster deflation in the first half of 2013," Calvet said.

The Spanish turbine maker is the only wind company that recorded higher profits in 2011.

China's wind industry has excessive capacity, going from 10 to 12 manufacturers in 2005 to more than 85 in 2011, according to Calvet.

Li Junfeng, director of the China Renewable Energy Industries Association, said China's wind power industry encountered many difficulties in 2011, including slower wind farm construction and many accidents in the sector, but nevertheless managed to overcome all the hardships and demonstrated excellent performance by the end of the year.

In addition, quality issues last year led to the disconnection of 702 wind turbines from the power grid in the city of Jiuquan in Gansu province and 644 wind turbines in Zhangjiakou, Hebei province.

Since then, China has attached greater importance to wind turbine quality.