China Huaneng Group, China’s largest power producer, has signed agreements to buy 1.8 GW of wind capacity from six domestic suppliers. The deals, worth just over 8 billion yuan ($1.2 billion) in total, are with Sinovel Wind Group, Shanghai Electric Group, Dongfang Electric Corp, China Shipbuilding Industry Corp, China Shipbuilding Industry Corp and Zhejiang Machinery and Electrical Group.
Under the terms of the deal, one of the largest of its kind anywhere in the world, each of the companies will supply about 300 MW of wind energy capacity to Huaneng. It emphasises China's emergence as the world's largest and fastest-growing wind energy market and now the largest after overtaking the USA earlier this year. The sector is continuing to expand rapidly in response to a government target requiring that at least 15 % of energy comes from renewable sources by 2020.
Investment in renewable energy in China reached $6.5 bn in the first quarter of 2010.
The company’s larger plan is to deliver 20 GW of wind energy capacity by 2020, 10 % of its expected total capacity at that time and a sevenfold increase on the 2.8 GW of wind capacity it has now. The company said in a statement that it is seeking to set up wind farms in northern China and in coastal areas in the country's south east.
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