Chinese major power firms to bid for offshore wind projects worth USD 3bn

(ADPnews) - Sep 8, 2010 - Major Chinese energy firms will this Friday bid for offshore wind power projects in China worth CNY 20.8 billion (USD 3.1bn/EUR 2.4bn).

Among the bidders are power conglomerate China Huaneng Group (CHNG), state-owned corporation China Energy Conservation and Environmental Protection Group, state-owned power producer China Power Investment Corp and others. The auction is also expected to attract local wind energy equipment makers Sinovel Wind Group Co Ltd, Xinjiang Goldwind Science & Technology (SHE:002202), Dongfang Electric Corporation Limited (SHA:600875) and others.

The four offshore projects that will be tendered have a combined capacity of 1,000 MW and will all be located in the Chinese province Jiangsu. Other coastal provinces are also eager to set up offshore wind projects, but most of these are still in the initial development stages, analysts said.

According to the Chinese regulations, offshore wind farms should be developed through public tender and by Chinese enterprises or joint ventures, in which the majority ownership is Chinese. The country has put the focus on offshore wind energy development, as its potential offshore wind power capacity is in excess of 750 GW, whereas onshore winds would provide for the much lower 253 GW of capacity.

(CNY 1.0 = USD 0.147/EUR 0.115)

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