Overview of Wind Power Industry Value Chain Using Diamond Model: A Case Study from China

Abstract

Sustainable energy development has gained worldwide attention, in part thanks to the wind power industry value chain that focuses on overall value creation and innovation, especially in China. This paper aims to construct a wind power industry value chain model and comprehensively analyze factors that have significant influences on it using a modified diamond model, which has remained nebulous. Focused on the value-adding effect of constructed value chains, we offer key ideas from different angles. A factor condition lays the foundation of the value chain, and shows that China is experiencing energy structure adjustment in which wind power will play a key role its resource potential is huge, but with mismatched distribution. Demand conditions reveal an increasing demand for wind but serious wind rejection as well this is where the value-adding probability exists. Related and support departments collaborate to determine the overall value creation process. Firm strategy, structure, and rivalry are terms that describe possible value-adding subjects considering the wind industry as a whole. Government and opportunity provide robust prices and non-price policies to support value integration, and Technology is an effective factor in cost reduction and value creation as a high value-adding sector. Furthermore, a comparison of wind power industry value chains in China and Japan is conducted. Our findings underscore that a gap exists between actual performance and the expected wind power industry value chain, and corresponding measurements to promote the performance are discussed, including encouraging diversified business models, enhancing R&ampD and independent innovation, professional cultivation, effectively reducing wind rejection rate, and the full range of government support.

Overview of Wind Power Industry Value Chain Using Diamond Model: A Case Study from China

Abstract

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