Longyuan Power Corporation Ltd., the biggest developer of wind energy in China, signed an agreement to acquire equity in a Canadian energy company, which is the first foray of the company in the global market for wind energy.
Under the agreement, Canada Longyuan Renewables Ltd., a subsidiary of Power Corporation Ltd. Longyuan, acquire capital stock of a 100 megawatt wind farm being built by Farm Owned Power (Melancthon) Ltd., a Canadian energy company Headquartered in Ontario. The wind industry insiders say the project will be completed in about two years but did not specify a date for the start of the project.
When completed, the project will supply electricity to 30,000 homes, said Longyuan. The agreement marks the first time a Chinese state energy company invests in wind power project located overseas. Longyuan began its efforts to acquire equity in November 2010.
Changjun Xie, CEO of Longyuan, said Canada has abundant wind energy resources and excellent support policies for wind industry, which has helped create an environment ideal for investment and operation of wind farms.
The consulting firm BTM Consult of Denmark said that by the end of 2010 Canada had the largest amount of installed wind power capacity in North America, only behind the United States. Plans for wind energy development in Canada provincial state that by 2016 there will be 12 gigawatts of installed wind energy capacity.
The wind Longyuan instalacioness totaled 6.56 gigawatts of installed wind power capacity by the end of 2010, the largest individual amount in Asia and the third largest in the world, according to a report by BTM Consult.
Longyuan has been vigorously exploring the market for renewable energy in recent years, establishing offices in South Africa, USA, Canada and Europe. Longyuan said it has made substantial progress in establishing wind energy projects in South Africa, as well as its progress in Canada.