Huaneng Power’s wind farm gets OK from regulators

Beijing, China’s Huaneng Power International (NYSE: HNP) has received the green light for its second wind power project from the National Development and Reform Commission, an economic government agency.

The RMB 2.037 billion (US$298.5 million) project, located in northern China’s Gansu Province, is expected to have the capacity to generate 199.5 megawatts. Of the project’s cost, 33.3 percent is expected to come from the company’s equity capital, while the rest is planned to be funded by bank loans.

The company’s first 120 MW wind power plant was built in the city of Wenchang in the northeastern Hainan Province. It cost RMB 1.3 billion and was constructed in 2008.

As China’s largest power producer, Huaneng Power owns 17 power plants, has controlling interest in 13 power companies and a minority stake in five power companies in China. The company owns one power company in Singapore.

Huaneng Power also has a 1 GW coal plant in Yuhuan that can generate 1 kWh with just 283 grams of coal. During the next three years, China's National Energy Commission plans to replace 31 GW of old, highly polluting coal power plants with 50 GW of newer models that use coal more efficiently (see China to close 31GW of coal power plants).