China Power buys 3.9GW of renewable energy assets from SPIC

The $750m deal is part of the company's plan to phase out coal.

The Chinese utility China Power International Development Limited will purchase renewable energy assets from its state-held parent company State Power Investment Corporation (SPIC) for CYu4.97bn (around US$750m).

Enerdata said that the company intends to phase out coal and the transaction will boost its attributable installed capacity by 11.83% and raise the share of renewable energies in its capacity mix up to around one third (32.93%) and up to 40% once all projects currently under construction and included in the deal become operational.

Here's more from Enerdata:

The assets involved within the deal entailed approximately 1,994 MW of attributable installed capacity in operation and 1,875 MW of attributable installed capacity under construction as of 30 June 2017.

The transaction encompasses seven indirect affiliates of SPIC which run hydropower, natural gas, wind and solar PV plants. Once completed, China Power International Development Limited will strengthen its presence in five Chinese provinces and will run directly the respective affiliates of SPIC: Guangdong Company, Guangxi Company, Sihui Company, Anhui Company, Hubei Company, Shandong company and Shouxian Company. The acquisitions are subject to regulatory approvals and conditions.

Guandong Company has a current attributable installed capacity of 830 MW (of which 780 MW of natural gas-fired assets and 50 MW of wind power); 152 MW under construction. Guangxi Company has an an installed capacity of approximately 1,042 MW (among which 630 MW of hydropower and 392 MW of wind power); 666 MW under construction. Sihui Company is engaged in the construction of 800 MW, including namely two sets of 400 MW CHP units.

This story was originally published by Enerdata.