12 Dec 2010
Everbright International Continues to Expand its Wind Power Business
Develops Three Exclusive Wind Power Projects in ShanxiChina Everbright International Limited ("Everbright International" or the "Group") is pleased to announce that the Group has reached an investment agreement with Ningwu County Government of Shanxi Province by which the Group has been authorized to install wind anemometers in three wind farms, located in Zhaojiashan, Changfangshan and Tangjiashan, Ningwu County. Following wind measurement tests, an investment proposal will be determined based on the collected data. At which time, the Group will be able to solely invest, develop, construct and operate the related wind power project.
Based on the wind data collected from the three existing wind power projects, initial estimates proof that wind resources of the aforesaid three wind farms are all of high development value. This is due to their location in north central Shanxi Province, on the Loess Plateau where wind resources are rich. These three projects will be implemented in phases, and based on preliminary estimates total electricity generation capacity will reach 450MW. As the electricity generation capacity is 150MW for Phase 1, the total investment cost is estimated to be approximately RMB1.5 billion.
Wind power has been classified as one of the key alternative energy industries that will gain strong government support, as announced in the Twelfth Five-Year Plan. At present, around 90% of energy generated in China derives from fossil fuels. To reduce reliance on petroleum and substantially reduce emission of carbon dioxide, the PRC Government has stated in its development plan that it aims to decrease its reliance on fossil fuel energy to around 80% by 2020, and increase the usage of non-fossil fuel energy, i.e. wind power, to around 15%. To capture the market opportunities, the Group will continue to expand its presence in the wind power related business.
Mr. Chen Xiaoping, the Chief Executive Officer of Everbright International, said, "We are glad to reach this investment agreement with Ningwu County Government. On the one hand, China Everbright can step further to develop wind power and elevate its market position in the wind power industry after its wind power project in Muping District of Yantai City in Shandong Province. On the other hand, this also allows the Group to open up the environmental protection market in Shanxi Province. Through developing this project, the Group will continue to gain experience in management and operation and the understanding of wind data and equipment model, so as to streamline the development and commercial investment model in future. This helps building a solid foundation for the Group to further explore wind power and the related environmental protection market."