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Mixed reviews of China's wind energy

Massive wind turbines operate in the Taiyangshan Development Zone in Wuzhong, a frontier city in the northwestern province Ningxia Hui Autonomous Region on September 22, 2011. The 215 square mile zone has the advantages of both strong wind and solar power, resulting in 300 megawatts of wind power and 100 megawatts of photovoltaic power. Taiyangshan is the biggest clean energy base in China. UPI/Stephen Shaver
Massive wind turbines operate in the Taiyangshan Development Zone in Wuzhong, a frontier city in the northwestern province Ningxia Hui Autonomous Region on September 22, 2011. The 215 square mile zone has the advantages of both strong wind and solar power, resulting in 300 megawatts of wind power and 100 megawatts of photovoltaic power. Taiyangshan is the biggest clean energy base in China. UPI/Stephen Shaver | License Photo

BEIJING, Oct. 24 (UPI) -- A German wind energy company said it was pulling out of China because market conditions and tighter rules are dragging on the clean energy sector.

China went from a near-zero wind energy capacity during the middle of the decade to the top installer of wind turbines in 2010. The market for wind energy, however, is expected to drop by as much as 20 percent for 2011, the Financial Times reports.

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Wolfgang Jussen, a chief executive at German energy company Repower, told the London newspaper that his company was pulling out of China because wind capacity is starting to outpace demand.

"We're not going to keep doing business in China when we have to take heavy losses just to install turbines," he was quoted as saying.

Tight credit conditions have pushed some investors away while Beijing was forced to enact tighter wind-energy rules after low-quality turbines were blamed for a major blackout earlier this year.

Jussen said a sister company would continue to operate in China.

Last week, a report prepared by the National Development and Reform Commissions Energy Research Institute, in cooperation with the International Energy Agency, determined China could have 1,000 gigawatts of wind energy in its grid by 2050. This represents a 16 percent increase from current levels.

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