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Fujian power into wind power

April 8, Fujian Electric Power, said the annual report in 2009, decided to rely on Ningde rich wind power resources in the territory, development and construction of wind power projects, the full implementation of wind power from the hydropower development to strategic transformation.

Also raised concern that last year a net profit of 90.4272 million yuan Fujian Electric Power, up 81.68%, basic earnings per share were 0.24 yuan, Bi Zeng 84.62%, record the best performance since listing.

"Even if the business growth mainly from investment income, but at least that has out of the shadows of the past, stand on the new starting point." Closer to the power of the people in Fujian Province reporter said, "Now, the company's refinancing conditions are mature, requires huge investment just to rely on the strategic transformation financing platform. "

According to the disclosure, Fujian Electric Power has the intention to consider additional financing, in order to solve the wind power project investment funds, however, not yet identified specific programs.

Betting on wind power

"2010, in particular the development of wind power industry to do the basic work, orderly land-based wind power generator projects, while offshore wind power projects actively seek to cultivate profit growth." Fujian Electric Power said.

Is promoting wind power projects, offshore wind generators projects only vision of building capacity in excess of existing installed capacity of hydropower electricity Fujian 6 times.

Information, Fujian main business of hydropower electricity production, with total installed capacity of 306,100 kilowatts, designed annual power generation is about 1.05 billion kwh.

While the offshore wind turbines projects, the first phase of the project installed capacity of 200 000 -30 million kilowatts, is expected to invest about 4.0 billion -60 billion; Vision plans to build capacity of up to 200 million kilowatts, is expected to more than 40 billion total investment element.

Under this strategic cooperation agreement, Fujian Electric Power will serve as a national demonstration project offshore wind power projects in Ningde investment holding company party, but the exact proportion of the investment were not disclosed, but a strategic cooperation agreement also include Ningde city government, the Chinese technology market Association and the China Aerospace million Source International (Holdings) Limited.

"The whole project's funding sources we have considered but not convenient to say." Fujian Electric Power secretaries to directorate Zhuang Chen Ming tells this reporter.

But after listening to Ningde Fujian Party Secretary Chen Rongkai a report on the power requirements of work, to take full advantage of listed companies and financing platform to remove the obstacles to re-financing, through reasonable means of capital operation, stronger and larger company's capital.

"At present, offshore wind power projects are being done the sea wind, the project pre-feasibility study and other preparatory foundation work, to wait for the material reported to the State Development and Reform Commission and get the franchise only after a formal development and construction." Fujian Electric Power Chen-Ming Chuang secretaries to directorate told this reporter.

Close to those estimated above Fujian power, wind power projects under review procedures and the progress of preparations for Fujian power, offshore wind power project-related materials can be reported to the National Development and Reform Commission in the second half of next year.

"Offshore wind power project is expected construction period is more than a year." Zhuang Chen Ming said.

It is estimated if the project be implemented as planned advance, eastern offshore wind electricity generation project first phase will be put into operation in 2013, is also consistent with established Fujian Electric Power 2011 - 2013 "exercises, blood "target.

Also to be launched land-based wind power projects. According to previous announcement, Fujian Fujian Fujian Province Electric Power and Energy Investment Co., Ltd. joint venture with Fujian Investment (Kasumigaura) Wind Power Co., which invested 54 million yuan in Fujian Province of energy, accounting for 60% of the registered capital of Fujian power investment 36 million yuan, accounting for 40%.

Min Investment Wind Power a project of 4.2 million kw wind generators big here, a total investment of 441.9 million yuan of static, the other is the island of 24,000 kilowatts war wind power project.

"Big Wind Farm in Beijing the first wind turbines is expected to test run in September of this year, and plans to achieve full production in October before electricity." The power sources close to Fujian.

ROI geometry

Wind power projects in the development effort, while also heavily invest in Fujian power wind turbine manufacturing base project.

Offshore wind power projects with both national offshore wind demonstration projects belong Ningde a strategic cooperation agreement is Haixiningde big fan manufacturing base.

Under the strategic cooperation agreement, the project plans to build fan base in manufacturing at least one assembly plant and a fan factory, mainly producing for the terrestrial, coastal, offshore wind farms of large offshore wind equipment, designed to reach one million kilowatts in wind power machine's production capacity, estimated initial investment of 800 million yuan.

However, the manufacturing base for the fan project, Fujian Electric Power is entitled to shares.

Prior to this, Finland has the power Fujian Oy Windside Production Ltd has signed strategic cooperation agreement related to preparation for the regional market in mainland China co-production and sale of small vertical axis wind power generation equipment, and joint research and development, production and sales of major Yong Yu land and offshore wind power plants and even larger MW vertical axis wind turbines. Before the start of the project, Fujian power to ensure that there are at least 30 million euros to raise funds.

"Fan manufacturing base project will be carried out simultaneously with the wind power projects, in advance of the major suppliers to their own wind farms, because these fans are basically custom type, no domestic production." Chuang Chen Ming said, "Of course, the fans will certainly be oriented manufacturing base Sales and Marketing. "

Accordingly, the Fujian Electric Power Investment fan windmill generators manufacturing, can be interpreted as supporting the construction of wind farms, and thus open up new areas of investment.

For wind power projects return on investment, Zhuang Chen Ming also optimistic.

"Offshore wind power project investment cost is the land about twice the wind power project, but the rate of investment is not necessarily worse than the utilities, construction, reasonable, or even higher than the investment in hydropower." Chuang Chen Ming think.

Data show that a large Beijing Fujian Wind Power's bid price including VAT is 0.619 yuan / kwh, the concession period is 25 years, investment profit rate is 3.39% calculated, the capital net profit rate is 16.88%, investment recovery period of 14.9 years.

The National Development and Reform Commission, Ministry of Finance announced in the hydropower industry benchmark rate of return before tax of 7% coordination outcome indicators. Last year, the Fujian Electric Power's electricity sales gross margin of 37.1%.

Large wind farm in Beijing won the bid price far above the Fujian power electricity price. According to the annual report, Fujian Electric Power Tariff for the current implementation of 0.2882 yuan / kWh (excluding tax).

"Compared to onshore wind, offshore wind energy resources better, the unit area of the wind resource is more abundant than the land." Zhuang Chen Ming said, "prior to offshore wind power in Shanghai won the bid price was 0.97 yuan / kWh, we hope that through this project will bring down the cost of offshore wind power. "