The AES Corporation (NYSE:AES) plans to expand its wind generation business into China through the creation of a joint venture with Guohua Energy Investment Co. Ltd., one of China’s leading producers of renewable energy.
The joint venture will construct, own and operate a 49.5 MW wind farm, which is currently under design and expected to achieve commercial operation in 2009. Through its investment in the joint venture, AES will become the first U.S.-based power company with wind generation facilities in China.
The wind farm site is located in the Huanghua area of Hebei Province, approximately 200 kilometers southeast of Beijing, and has the potential to generate up to 225 MW. The Hebei Provincial Power Company will purchase all of the power generated by the facility, as required by the Chinese Renewable Energy Law. AES subsidiary AES Black Sea Holdings BV will own a 49% interest in the joint venture, known as Guohua AES (Huanghua) Wind Power Co. Ltd. The remainder of the joint venture will be owned by Guohua. Financial terms of the transaction were not disclosed.
“Through our joint venture with Guohua, AES is able to enter the promising wind market in China with a well-established and respected partner, and to create a platform for further wind activities in the future,” said Ned Hall, President, AES Renewable Generation. “This is consistent with AES’s broader goals to expand our wind generation business globally in markets in which AES already has established successful operations.”
In 1994, AES became the first U.S.-based power company to enter China, and now operates seven power plants in six provinces and municipalities with a total generation capacity of 2,842 MW.
“We see tremendous growth opportunities for wind generation in China, which has committed to adding 30,000 MW of new wind power by 2020,” said Tom Kunde, Vice President, AES North Asia. “We look forward to being a key part of China’s growing wind generation sector.”
AES entered the wind generation business in 2004. Today, AES has more than 1,000 MW of wind projects in operation in the United States and another 3,000 MW of wind projects in various stages of development throughout the world. The company’s wind development projects are located primarily in the United States and Europe. AES has plans to expand its wind business to other countries where it does business, including countries in Asia and Latin America.
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