The Asian Development Bank (ADB) will partly finance a USD73 million wind farm in the Inner Mongolia Autonomous Region to support China's efforts to cut greenhouse gas emissions and to promote private investment in renewable energy.
ADB is extending a long-term local currency loan of up to CNY164 million (USD24 million) to Datang Sino-Japan Renewable Power Corporation, a joint venture between state-owned China Datang Corporation and Japan’s Kyushu Electric Power Company, Sumitomo Corporation and Sumitomo Corporation Holdings. It will be the first private-sector wind farm to be financed by ADB in China.
With its economy still growing strongly, the China has become the second-largest power consumer in the world, after the US. A heavy reliance on coal to produce that power means the China now accounts for a significant share of global greenhouse gas emissions.
The Chinese government has identified wind power as a commercially viable clean energy alternative to fossil fuels. In a nation with abundant wind resources, it's estimated that if the industry were fully developed, it could produce about 1,000 gigawatts (GW), more than 1.5 times the country’s current electricity generation capacity.
"The lack of finance on reasonable terms has held back the development of clean energy projects in China. This project could become a model for future collaborations between state-owned enterprises and foreign investors in renewable energy projects, and may encourage China's private sector to invest in wind power projects," said Hisaka Kimura, Investment Specialist with ADB’s Private Sector Operations Department.
Inner Mongolia is considered a prime location for a medium to large-scale commercial wind power industry. The proposed 12-square-kilometer wind farm in Chifeng City, Inner Mongolia, is expected to provide a steady source of electricity for the national power grid.
In 2008, China generated 12 GW from wind power. The government aims to boost that to 100 GW per year by 2020. The Chifeng project will produce about 133 gigawatt-hours (GWh) a year. It should also generate carbon credits under the Kyoto Protocol's Clean Development Mechanism that allows buyers in industrialised countries with greenhouse gas reduction commitments to purchase carbon credits from developing countries, such as China, to meet those commitments.
ADB is extending a long-term local currency loan of up to CNY164 million (USD24 million) to Datang Sino-Japan Renewable Power Corporation, a joint venture between state-owned China Datang Corporation and Japan’s Kyushu Electric Power Company, Sumitomo Corporation and Sumitomo Corporation Holdings. It will be the first private-sector wind farm to be financed by ADB in China.
With its economy still growing strongly, the China has become the second-largest power consumer in the world, after the US. A heavy reliance on coal to produce that power means the China now accounts for a significant share of global greenhouse gas emissions.
The Chinese government has identified wind power as a commercially viable clean energy alternative to fossil fuels. In a nation with abundant wind resources, it's estimated that if the industry were fully developed, it could produce about 1,000 gigawatts (GW), more than 1.5 times the country’s current electricity generation capacity.
"The lack of finance on reasonable terms has held back the development of clean energy projects in China. This project could become a model for future collaborations between state-owned enterprises and foreign investors in renewable energy projects, and may encourage China's private sector to invest in wind power projects," said Hisaka Kimura, Investment Specialist with ADB’s Private Sector Operations Department.
Inner Mongolia is considered a prime location for a medium to large-scale commercial wind power industry. The proposed 12-square-kilometer wind farm in Chifeng City, Inner Mongolia, is expected to provide a steady source of electricity for the national power grid.
In 2008, China generated 12 GW from wind power. The government aims to boost that to 100 GW per year by 2020. The Chifeng project will produce about 133 gigawatt-hours (GWh) a year. It should also generate carbon credits under the Kyoto Protocol's Clean Development Mechanism that allows buyers in industrialised countries with greenhouse gas reduction commitments to purchase carbon credits from developing countries, such as China, to meet those commitments.
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