China joint venture to develop renewables including hydro, tidal

Units of energy holding company China Huadian have agreed to form a joint venture to develop renewable energy projects in China, including small hydropower and tidal energy plants.

China Huadian’s 49.2 percent-owned unit Huadian Power International Corp. told the Hong Kong Stock Exchange September 5 it is joining China Huadian, Huadian Energy Corp., Guizhou Hydropower, and Huadian Engineering to form the joint venture.

The joint venture will be involved in the investment, development, and construction of new energy projects, including small hydropower, tidal, wind, biomass, solar, geothermal, and garbage-generated power.

Huadian Power said the joint venture is the type of company being encouraged by the Peoples Republic of China (PRC) government, which is proposing a “new energy quota system” for power companies.

“The directors understand that the PRC government is in the process of formulating policies regarding the proportion of power generated from new energy sources,” Huadian Power said. “In the coming years, power generating companies in the PRC with a certain level of installed capacity will be required to have a certain percentage of their installed capacity to utilize new energy sources.”

Huadian Power said registered capital of the joint venture could be increased to 1.5 billion renminbi (US$198.7 million) in three years from an initial 200 million renminbi (US$26.5 million). Huadian Power said it would hold 20 percent of the venture, while China Huadian holds 51 percent, Huadian Energy holds 12 percent, and the other two partners would own the remainder.