China Guodian Branches into Hunan Province

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Guodian Corporation, one of China's top-five power groups, has branched into the Hunan province in South China by acquiring 97.41 % of the total shares of the Yiyang Power Plant.

Located in the north of the province, Yiyang Power Plant is a key junction in the Sanxia Power Grid, alleviating extra power-demand pressure at peak hours. With a designed total installed capacity of 1,800 megawatts (MW), Yiyang Power Plant includes a 600-MW thermal power generation unit and two newly built 600-MW ultra-supercritical thermal power generation units.

The China Guodian Corporation declined to reveal the exact amount of money spent on this acquisition, yet total investment for Yiyang Power Plant Phase II reconstruction amounts to $675 million.

Profits from the thermal power industry in Hunan are slimmer compared to its counterparts in northeast China, because Hunan lacks coal reserves and also has a strong hydropower industry, which reduces the demand for thermal power in water-abundant seasons such summer and spring.

China Guodian plans to invest between $2.2 billion and $2.9 billion in Hunan in the next three years and is interested in hydropower, thermal power, nuclear power, wind power and the exploration of coal reserves.

China Guodian's move marks a new trend in the development of China's power industry--the diffusion of China's power giants, who are now entering new markets in order to possess more installed capacity.

Traditionally, China Datang Corporation feeds into the market of Beijing. China Huadian Corporation feeds the market of the Shandong province, and China Guodian Corporation's power goes to northeast China.

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