US power giant AES Corp has become the first US-based power company to own wind power generation facilities in China after its subsidiary recently formed a JV with Guohua Energy Investment, a state-owned renewable energy producer.
The joint venture will construct and operate a 49.5MW wind farm in the Huanghua region of Hebei province, with the project scheduled to come online in 2009. The Hebei Provincial Power Company will purchase all of the power generated by the facility, as required by the China's renewable energy law.
Guohua will hold a 51% stake in the wind farm, while AES's subsidiary, AES Black Sea Holdings, will hold 49%. The project has the potential to be expanded in the future up to 225 MW.
In 1994, AES became the first US power company to enter the Chinese power sector and it currently operates seven power plants spread across six provinces and municipalities with has a total installed generation capacity of more than 2,800MW.
AES entered the wind power business in 2004. It currently has more than 1,000MW of wind power generation capacity in operation or under construction in the US, , and an additional 3,000 MW of wind power capacity installed in other wind projects spread across the world.
The Chinese government, after a slow start is now starting to invest more in wind power and its plan to reach 5,000 MW of installed wind power capacity by 2010 could be achieved as early as this year, according to the China Wind Energy Association.