Made in America by China: New Turbine Factory Offers Glimpse into the Future

China-based A-Power's new deal to build a $50 million wind turbine factory in the United States is about helping America meet its surging demand for wind power, the company said in its announcement.

But it's about far more than that: The plant is a sign that Chinese energy firms are using America's renewables boom to establish their brands stateside — and everywhere.

The new factory will produce 1,100 megawatts of "highly advanced" wind energy turbines each year at an unannounced U.S. location. That's enough to power 330,000 homes. The facility will also generate about 1,000 domestic jobs upon completion, according to A-Power.

The venture is the second this year between A-Power Generation Systems, a subsidiary of Shenyang Power Group, and the U.S.-based Renewable Energy Group.

Their first collaboration — a 600-MW, $1.5 billion wind farm deal in West Texas — set off a firestorm in Washington when it was announced on Oct. 29.

The reason: jobs.

The Texas wind deal calls for A-Power to manufacture the farm's 240 turbines in China and export them to the U.S. Doing so would create 2,000 to 3,000 new jobs — in Shenyang, China. America would see 330 new jobs, of which only about 30 would be permanent.

This discrepancy wouldn't be a problem if it wasn't for one thing: The developers are seeking $460 million worth of U.S. stimulus money to finance the wind farm. China's banks will cover the rest, but without the U.S. contribution, the plan is dead on arrival.

In protest to the idea of a made-in-China wind farm on U.S. taxpayer dollars, Sen. Charles Schumer (D-N.Y.) sent a letter to Energy Secretary Steven Chu a few weeks back. In it, he wrote,

"The idea that stimulus funds would be used to create jobs overseas is quite troubling and, therefore, I urge you to reject any request for stimulus money unless the high‐value components, including the wind turbines, are manufactured in the United States."

The secretary is unlikely to budge. One possible solution is for the new turbine factory, with its made-in-America parts, to supply the windmills for the Texas wind farm. That too appears unlikely.

Still, Sen. Schumer responded favorably to the new U.S. factory in a statement:

"This is exactly what stimulus funding ought to do: create and strengthen green manufacturing jobs in America, even if that slightly slows renewable energy production as we play catch-up to countries like China."

China and the U.S. are the most important countries in wind power development today. Together, they account for more than one-third of total installed wind capacity.

This year, China is expected to beat out the U.S. as the largest wind turbine manufacturer in the world. Solar energy is on the same trajectory.

China currently leads the world in making solar cells. On Tuesday, China–based solar giant Suntech Power announced that it's building its first American solar factory, a 30-megawatt facility near Phoenix, Arizona.

The move is being touted as the first by a Chinese cleantech company to bring manufacturing jobs to the U.S. The factory will employ 75 Americans at launch.

Asian Nations Dominate

in a new report released today, the Oakland-based Breakthrough Institute writes that China, Japan and South Korea are all on track to blow the U.S. out of the water when it comes to reaping rewards of low-carbon technology development.

One key reason: Asia's rising "clean technology tigers" are actively supporting clean energy manufacturing centers to power their own economies and export equipment abroad.