Meiya plans to buy stakes in China wind power projects

PUBLISHED : Wednesday, 06 September, 2006, 12:00am
UPDATED : Wednesday, 06 September, 2006, 12:00am

Meiya Power, a Hong Kong-based and Middle East-funded company that has been seeking a listing in Asia to fund expansion, is close to investing in two mainland wind power projects.

'We have two wind projects in which we are about to put down equity investment,' chairman Colin Tam told delegates at the Power-Gen Asia conference in Hong Kong.

Meiya may hold back the investment until the rules covering the sector become clearer in the next few months, senior vice-president of corporate development Samson Ng said.

The government would probably revise its regulatory and tariff regime for wind-generated power within six months after a recent change in energy policy officials, industry executives said. Rules introduced last year drew criticism that they would lead to unsustainable development.

Meiya planned to take 'significant stakes' in a 500-megawatt wind project in Inner Mongolia and in a 100 MW project in eastern China, Mr Ng said.

The company, which has 3,355 MW of generating capacity in power plants across Asia, is making its first investment in the fast-growing mainland wind power market.

The government last year said wind farm developers had to partner equipment suppliers to bid for projects. Those offering the lowest power tariffs tend to be winners.

The industry had expected a coal-fired plant benchmark tariff-plus-subsidy formula.

Some state companies have won projects at loss-making tariffs, raising concern they will need to squeeze suppliers for cheaper turbines, which may affect equipment quality and reliability.

Mr Ng said Meiya was keeping a stock market flotation as an 'option' after it failed to list in Singapore this year amid poor sentiment towards the mainland power market. The company also called off Singapore listing plans last year.