Zhejiang Huayi Decides to Enhance Investment in Wind Power Sector

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Zhejiang Huayi Electric Company, Limited (Zhejiang Huayi) (Shanghai:600290) signed an agreement with the Government of Xinghe County, Inner Mongolia Autonomous Region for the construction of a 500-megawatt (MW) windfarm in an area of 70 square kilometers in Xinghe County last week, announced by Zhejiang Huayi on August 7, 2007. The company signed the agreement with the Government of Tongyu County, Jilin Province for the establishment of a wind power generating unit manufacturing enterprise with annual production capacity not less than 200 MW, together with the construction of one associated windfarm with a total planned installed capacity of 1,000 MW in the county on July 29, 2007.

With increasing support from the government on the development of wind power in China, enterprises from both China and abroad have enhanced investment in this hot sector. News of wind power projects comes one after another from these provinces with rich wind resources such as Inner Mongolia, Gansu, Hebei and Fujian. Due to the cost of wind power equipment, as well as grid connection cost resulted from geographic restrictions of windfarms, the wind power is less attractive than hydropower and thermal power. However, following the issuing of related policies from the state, and the gradual improvement in related technologies, this situation is changing, and the investment passion in wind power continues to warm up.

According to the Regulation Rule on Full Procurement of Electricity Produced from Renewable Energy by Grid Enterprises (the Regulation Rule) published by the State Electricity Regulatory Commission (SERC) on August 1, 2007, grid enterprises are requested to procure electricity produced from renewable energy effect in full amount starting from September 1, 2007, and grid enterprises are requested to give priority on the dispatching of power produced from renewable energy.

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