The new venture, AusChina Energy Co. Ltd., aims to develop A$3 billion worth of wind farm and solar power plants in Australia within three years and A$6 billion over the next eight years to obtain a third of Australia’s renewable-energy market, CBD Energy said in a statement to the Australian Stock Exchange on Monday.
The Chinese partners will provide equipment and funding to the venture, according to the statement. Datang Renewable will control a 63.75% stake in the venture; CBD Energy has 23.75% and Hebei-based Baoding Tianwei holds 12.5%.
Gerry McGowan, CBD Energy general manager, told the 21st Century Business Herald that with technical and financial support from its Chinese partner, he was confident his company’s wind energy assets could reach grid price parity with coal-fired power.
Hu Guodong, deputy general manager of Datang Renewable, said: “Besides this Australian project, we are also looking for and approaching potential partners in the United State and South America.”
“The new venture company is not only for development in Australia, it will also be developed as the platform for Datang Renewable’s international expansion,” Hu added.
Industry watchers said the growth of China’s wind-energy sector is expected to slow down in the near future, and major renewable energy companies have all begun to prepare for foreign expansion.
“The growth of domestics market will slow eventually. Foreign expansion would not only increase revenue of the company, and also diversify the company’s revenue portfolio, it will be the keystone of the company’s stable growth,” Hu said.
Founded in 2009, Datang Renewable is the second-largest wind power unit among China’s top five power producers. The company has an installed wind power capacity of 2.65 megawatts and operates in 21 provinces and 43 regions in China.
China Datang Corp Renewable Power Co Ltd on Wednesday said it formed a joint venture with Australia’s power storage firm CBD Energy Ltd and another Chinese firm to develop wind and solar projects in Australia.
China’s second-largest wind power producer took a 63.75 percent stake in the new company, while CBD owned 23.75 percent, the company said in a statement.
Baoding Tianwei Baobian Electric Co , a Chinese maker of power transformers, will own the remaining 12.5 percent, it said.
Datang did not disclose financial details of the deal, but said that the new company was expected to develop renewable energy ventures including the establishment of solar thermal projects in Australia.
The new venture, AusChina Energy Group, is being established at a time when Australia is pushing to develop its renewable energy market, offering perks in the form of renewable energy certificates which investors could use to offset the cost of investment in clean energy projects. Australia has set a national target of 20 percent renewable energy generation by 2020.