A domestic wind industry is emerging in China, driven by high fuel prices, government support through favourable tax regimes and interest from the domestic and foreign private sector. In 2004, China’s wind capacity grew by 29% and a further 270 MW is due to come on line this year, bringing total installed capacity to around 1 GW. At the end of 2004, wind power accounted for just 0.17% of the country’s total installed capacity with a target for renewables to rise to 10% by 2020, from 1% for now.