With the success of grid-interconnection, commissioning of the entire wind farm has been commenced and full commercial operation is expected to be in 3Q 2010, a full year ahead of the original project plan.
Mr. Eric Oei, Chief Executive Officer of HKC, said, "The commencement of operation of the Changma Project signifies another crucial success of the Group’s wind energy business development. Along with the completion of our Danjinghe project, the Changma Project demonstrates our ability to develop premium quality projects on or ahead of schedule and within budget. We expect the project will make contribution to the revenue of the Group in the future. As China transforms itself towards a cleaner economy, we strongly believe that our wind power business has a huge potential and we will continue to actively exploring and developing premium quality wind farms across China."
The wind energy project, a joint venture between HKC and the Wind Power Investment Corporation of China Energy Conservation Investment Corporation ("CECIC") with a total investment of RMB1.73 billion, is located in the Gobi Desert, southwest of Yumen Town, Jiuquan City, Gansu Province. The approved feed-in tariff of the Project is RMB0.52/KWH (within 30,000 hrs), and the project is expected to generate approximately 476 million KWH of electricity per year.
Mr. Oei said, "Going forward, HKC will conduct feasibility studies to explore the opportunities to inject its wind power assets, including the Changma Project, into our subsidiary, Hong Kong Energy ("HKE", HKEx: 987). HKE is set to become the alternative energy flagship of HKC. HKC will continue to provide its supports to HKE in developing the wind power generation and other alternative energy businesses."
Other existing wind power projects operated by HKC include the Mudanjiang Wind Farm in Heilongjiang, the Siziwang Qi Phase 1 Wind Farm in Inner Mongolia and the Danjinghe Wind Farm in Hebei Province. HKC also has an exclusive development rights to an area of 980 sq. km. in Siziwang Qi site which can be developed into a 1,000MW wind farm. The total capacity of wind farms either in operation or under construction under HKC and HKE currently stands at 660MW.
HKC (Holdings) Limited (stock code: 190) is principally engaged in property development and investment activities with a primary focus in the PRC. HKC has development projects in Shanghai, Shenyang, and Tianjin. It is also one of the leading providers of renewable energy in the PRC, with investments in Heilongjiang, Inner Mongolia, Hebei, and Shandong provinces. HKC owns a 74.1% interest in Hong Kong Energy (Holdings) Limited.