AES boosts wind capacity in China

Arlington, Va.'s AES (NYSE: AES) announced an increase in its China-based wind power operations today with two new agreements with Beijing-based wind power developer Guohua Energy Investment.

Financial terms of the contracts were not disclosed, but AES said the deals would boost its wind capacity in China to approximately 150 megawatts.

AES said it acquired 49 percent of the 49.5 MW Guohua Hulunbeier Wind Farm, which started commercial operation in September 2007 in Inner Mongolia, marking AES's second wind power project with Guohua.

AES also reached a separate agreement with Guohua to proceed with construction of phase II of their jointly-owned Huanghua wind project in Hebei.

"The acquisition of the Hulunbeier Wind Farm and extension of the Huanghua Project are part of AES's continued expansion of its wind power business in China," said Tom Kunde, president of AES China.

"We see a tremendous opportunity for further growth for AES in China. Together with Guohua, a leader in China's renewable energy field, AES is helping China meet its commitment to generate 30,000 MW of wind power by 2020."

The Huanghua expansion will add another 49.5 MW, doubling the operating capacity of the project to 99 MW when construction is completed in 2010, according to AES.

AES said phase I of the Huanghua project is currently under construction with commercial operation expected in late 2009.

The company said it owns 49 percent of the wind farm, which it said has the potential to expand to up to 200 MW.