China's Huolinhe Opencut Coal mulls 20.5 MW of distributed PV

Sep 12, 2014 - Huolinhe Opencut Coal Industry Corporation Ltd of Inner Mongolia (SHE:002128) said yesterday it plans to invest some CNY 175 million (USD 28.5m/EUR 22m) in 20.46 MW of distributed generation (DG) solar schemes in China.

The Chinese firm will cover 20% of the investment with own funds and the remaining 80% with bank loans. The installations will be located in China’s city of Holingol in the Inner Mongolia Autonomous region, which the company says offers good solar energy resources.

Huolinhe Opencut Coal mines, processes and sells coal products. It explained that the start of the solar DG project has been motivated by the Chinese National Energy Administration (NEA)’s new support programme, announced recently.

In August it was announced that China's central energy authority has set a goal of 13 GW for 2014 solar capacity additions. Xinhua news agency quoted the head of NEA, Xinxiong Wu, as saying that distributed photovoltaic (PV) schemes will be top priority in this year's plan. The government is providing attractive incentives to spur the development of the DG market.

The solar project is subject to shareholders approval.

(CNY 1 = USD 0.163/EUR 0.126)

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