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China Power to buy 3.9GW clean power assets from SPIC

EBR Staff Writer Published 10 October 2017

China Power International Development (CPI) has signed a deal to buy 3.9GW of clean energy assets from parent company State Power Investment Corporation (SPIC) and its subsidiaries for CNY4.97bn ($750.4m).

SPIC, which is a Chinese state-owned electricity producer, is also the parent company of CPI. The assets it will divest are mainly engaged in clean energy generation including hydropower, natural gas power, wind power and photovoltaic power.

Through the acquisition, CPI will be expanding its foothold in the Chinese provinces of Guangdong, Guangxi, Anhui, Hubei and Shandong.

CPI in a statement said: “The injection of quality clean energy assets from SPIC and CPI Holding to the Company will enlarge the Group’s assets and business coverage and enhance its overall market competitiveness.

“This is also strategically in line with the implementation of the national “13th Five-Year Plan” in China which the PRC government targets for clean energy and power developments up to the year 2020, after it became a party to the Paris Agreement signed in 2016.”

The assets include about 1,994MW of capacity in operation and around 1,875MW capacity under construction as on 30 June 2017.

Some of the major assets to be acquired by CPI from SPIC’s subsidiaries are 780MW natural gas power capacity of Guangdong Company, 630MW hydropower and 392MW wind capacities of Guangxi Company, and 800MW of natural gas-fired capacity of Sihui Company.

Following the transaction, China Power’s installed capacity will expand by about 11.8%. Its share of clean energy on the other hand will move up to nearly 32.93%.

The acquisitions are subject to necessary approvals and conditions.