China Guodian Corp, one of China’s five largest power generators by sales, is stepping up to enter the wind power industry abroad as its main measure to accelerate the internationalization process.
A 100 megawatt wind power project by Guodian is to start construction in Canada’s Ontario this month and will be put into operation in 2014, the State-owned power producer told China Daily.
In 2011 Guodian spent C$250 million ($239.5 million) on acquiring the wind power project of Canada’s Farm Owned Power (Melancthon) Ltd, making it the first State-owned power company in China to invest in the new energy sector abroad.
“The project will be able to supply electric power for 30,000 local households once the construction is completed next year,” said Xie Changjun, deputy-general manager of Guodian.
China Longyuan Power Group Corp Ltd, the largest wind power company in China and a listed subsidiary of Guodian, will take charge of the project’s operations and has been preparing for land acquisition, financing and local community connections for the project.
By the end of 2012, China Longyuan had an installed capacity of 12,698 mW, among which 10,544 mW is wind power, ranking highest in Asia and China.
“Overseas expansion has become a key business of China Longyuan since the company was listed in Hong Kong in 2009,” Xie said, adding that North America, Australia, South Africa and the Middle East are target overseas markets for the company.
“Global expansion of Guodian is renewable energy-oriented. Although the international business environment is complex, our business in the new energy industry in foreign countries will achieve sustainable growth,” said Chen Feihu, general manager of Guodian.
With a total overseas contract value of 1.65 billion yuan ($269.6 million), Guodian operates 41 projects in 26 countries and regions including the United States, Russia, South Korea and Africa.
China Longyuan will officially bid for a wind power project in South Africa in August, according to the company.
Guodian, the parent company of China Longyuan, plans to set up a blower and fan manufacturing base in South Africa to further expand the wind power developing scale of the company, Guodian said earlier.
The company will consider investing in other electricity sectors including solar power in overseas markets. In 2011 and 2012, Guodian gained developing rights for hydroelectric power in Cambodia and Myanmar.
In addition, high and new technology products produced by Guodian including plasma ignition, blowers, solar panels and desulphurization products are gradually being exported to foreign markets.
In June, Guodian made a foray into the European market by completing a plasma ignition technology upgrading project in Turkey.
“We will catch the opportunity of developing the green and low-carbon economy globally and exploit our own advantages to develop crucial business in terms of renewable energy, high-technology, energy-conserving, project construction and power station operations around the world,” said Chen.