A-Power Energy is Awarded Contract for Development of 19.5MW Wind Farm in China

A-Power Energy Generation Systems Ltd. (NASDAQ: APWR) has been awarded a contract to develop a 19.5 MW wind farm. The farm will be located in the Donggang, Rizhao City of Shandong Province in China. The contract is for the Shandong subsidiary of the Datang International Power Generation Co., Ltd. The contract is valued at $36.2 million.

A-Power will supply the wind turbines, towers and the foundations. The company will also oversee the construction, subcontracting and installation of the project. The estimated cost breakdown is $33,7 million for equipment procurement, $1.9 million for construction and installation, and $586,000 for miscellaneous products and services.

A-Power Energy Generation Systems, Ltd. ("A-Power"), through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered the wind energy market and has built China’s largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German FUHRLANDER AG and Denmark-based Norwin, and a total annual production capacity of 1,125MW. In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies.

The Wind Turbine Project of A-Power is listed as one of the major Industrial Projects of Liaoning Province and Shenyang City. In undertaking this milestone project, A-Power enjoys strong support from the State Ministry of Science and Technology, State Ministry of Commerce and local governments in both Liaoning Province and Shenyang City.

Located in the state-approved Economic and Technology Development Zone of Shenyang, A-Power’s wind turbine production facility boasts an area of over 300,000 square foot. It has two production lines: the 2.7MW wind turbine whose technology is licensed from Fuhrlander AG (Germany) and the 80/20 JV of 750KW (expandable to 1.5MW) with technology licensed from Norwin A/S (Denmark).

The facilities were completed in January 2009 and they are now the largest wind turbine production plant in China, enabling A-Power to supply both domestic and international customers with quality wind turbines based on commercially viable technology.

Assembly of the first two units of the 2.7MW-grade wind turbines began June 2009.

The wind turbine business of A-Power is headed by Mr. Yunbo Wang, a veteran in China energy generation business, together with his team of engineers who trained in Germany in 2008 and 2009.