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4 Clean-energy Plants Approved

Eric Ng in Beijing, SCMP – Updated on Mar 13, 2009

The central government has approved the construction of four clean-energy projects that could cost up to 19.8 billion yuan (HK$22.45 billion), as part of the country’s effort to reduce pollution.

The National Development and Reform Commission yesterday said it had given China Huadian Group the green light to build the 920-megawatt (MW) Luding hydropower station on Dadu River in Sichuan province.

It had also approved the construction of the 880 MW Dongqingshui hydropower project on Beipan River in Guizhou autonomous region by mainland-listed Guizhou Qianyuan Power.

China Huadian, one of the five state-owned generation firms, is the parent of Hong Kong and mainland-listed Huadian Power International Corp.

The top economic policy planner has also cleared the 100.5 MW second-phase wind farm development in Rudong, Jiangsu, by China Longyuan Electric Power Group, a unit of China Guodian Group – one of the five state power majors.

Huadian Power’s 100.5 MW Guyuan wind farm in Hebei province also gained approval.

An Asia utilities analyst said the cost of building hydropower plants in China ranges from 6 million yuan to 10 million yuan per MW, while that of wind power varied between 7 million yuan and 9 million yuan.

Based on these figures, the total investment cost of the four projects, with a combined capacity of 2,001 MW, could reach 19.8 billion yuan.

The National Energy Commission plans to build six large wind farm bases, each with more than 1,000 MW of capacity, in Inner Mongolia, Gansu, Xinjiang, Hebei and Jiangsu provinces and autonomous regions, according to Xinhua.

Inner Mongolia has the most ambitious plan, with 5,000 MW of capacity.

According to a long-term renewable energy plan released by the NDRC in mid-2007, Beijing wants to raise the country’s hydropower generating capacity to 190,000 MW next year and 300,000 MW in 2020, from 171,520 MW at the end of last year.

Wind power capacity is targeted to rise to 5,000 MW next year and 30,000 MW by 2020. Next year’s target has now been exceeded, as capacity stood at 8,940 MW last year-end.

Beijing aims to have 10 per cent of the national energy consumption coming from renewable sources by next year and 15 per cent by 2020. The ratio was 8 per cent last year.

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