China’s Wind Power Industry Welcomes Billions In Investments

Research

Chinese energy companies are now ready to take advantage

of China’s huge wind potential,

 investing billions to harness the country’s offshore and onshore wind resources.

Guangdong Baolihua New Energy Corporation leads the pack with its 20 billion Chinese yuan ($2.93 billion) offshore wind project located along the coastal area of Shanwei City, Guangdong Province, according to China Daily.

The 1.25-gigawatt wind project will cover 240 square kilometers of sea area, making it the largest offshore wind facility in China. Baolihua New Energy is now working on the project’s preconstruction designs and preparations in cooperation with the Shanwei City government.

Guangdong Province has an average wind speed of 7.7 meters per second at 60 meters above sea level, making the region an excellent site for offshore wind farms, said Guangdong Baolihua.

The new project is part of the company’s Lufeng Jiahuwan Clean Energy Base, which includes five new energy projects with a total installed capacity of 9.35 GW and worth a total of 56.billion Chinese yuan.

Guangdong Baolihua (SHE: 000690) also intends to build another new energy base in Meixian county.

Chinese energy companies are now ready to take advantage of China’s huge wind potential, investing billions to harness the country’s offshore and onshore wind resources.

Guangdong Baolihua New Energy Corporation leads the pack with its 20 billion Chinese yuan ($2.93 billion) offshore wind project located along the coastal area of Shanwei City, Guangdong Province, according to China Daily.

The 1.25-gigawatt wind project will cover 240 square kilometers of sea area, making it the largest offshore wind facility in China. Baolihua New Energy is now working on the project’s preconstruction designs and preparations in cooperation with the Shanwei City government.

Guangdong Province has an average wind speed of 7.7 meters per second at 60 meters above sea level, making the region an excellent site for offshore wind farms, said Guangdong Baolihua.

The new project is part of the company’s Lufeng Jiahuwan Clean Energy Base, which includes five new energy projects with a total installed capacity of 9.35 GW and worth a total of 56.billion Chinese yuan.

Guangdong Baolihua (SHE: 000690) also intends to build another new energy base in Meixian county.

Meanwhile, another energy company from Guangdong seeks to invest 8 billion Chinese yuan for an 800-megawatt onshore wind farm in Yunnan Province.

China Guangdong Nuclear Power Group, China’s second largest atomic reactors builder, inked an agreement with the local government on April 30 to install wind turbines in several towns in Yuxi.

The company already invested 3 billion Chinese yuan to start the first phase, which includes installing 300 MW of wind turbines in Hongta, Chengjiang, Jiangchuan and Huaning. The first phase is expected to begin the first half of 2012 and will be completed by 2013.

China Longyuan Power Group is also on the reins of wind development, as the company plans to spend about 92 billion Chinese yuan over the next five years to become the world’s top wind power producer, Bloomberg reported.

Longyuan Power intends to install at least 16 GW of wind turbines in China and worldwide by 2015, said Xie Changiun, the company’s president.

“China so far has used only about 1 percent of its total estimated wind power resources and there is vast potential for future growth,” he said.

He also revealed plans to explore opportunities in wind markets in South Africa, the United States, Australia and Europe.

At present, Longyuan Power (HKG:0916) ranks fifth globally by wind power capacity and aims to climb to the third spot by 2012. The company successfully installed 4,503 MW of capacity in 2009, which is expected to reach 6,500 MW by the end of 2010.

These aggressive moves by Chinese energy companies are in line with the national government’s goal to reduce fossil fuel dependence and boost renewable energy development. China targets to reduce its carbon emissions by 40 percent to 45 percent in 2020 compared with its 2005 levels.

China experienced a 100 percent year-on-year growth in wind power, with its capacity surging to 25.1 GW from 12.2 GW in 2008. This makes the country the second largest wind power producer in the world