Tuesday, December 9, 2008

Hongkong Electric completes 1st mainland wind farm project

Dec. 9, 2008 (China Knowledge) - Hongkong Electric Holdings Ltd (HEH)<6>, an electricity operator controlled by Hong Kong business giant Li Ka-shing, announced on Tuesday it has completed its first wind farm project on the mainland and expected to commence commercial operation early next year, sources reported.

According to the report, the 48-megawatt Yunnan project with a total investment of RMB 500 million is a joint venture utility, in which Hongkong Electric owns a 45% stake while mainland power producer Huaneng New Energy Industrial holds the rest.

The wind farm, along with another one in Hebei province, was bought by the Hong Kong electricity operator this year, marking its first investments on the mainland to capitalize on the country's rising demand for renewable energy, China Knowledge reported earlier.

Hongkong Electric said the projects were awarded with government incentives, including priority in the purchase of power generated from the windmills, tax exemptions on construction work and value-added tax rebates on machinery, adding both projects were qualified with global environmental standard for cutting emission of greenhouse gas.

The investment would enable Hongkong Electric to take a bite of the nascent but massive renewable energy market, amid a looming government-ordered cut in the rate of return from supplying electricity to its local market, according to analysts.

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