Huaneng Power gets go-ahead on 2 plants
Huaneng Power International, the mainland's largest listed power producer, said it had government approval to invest 4.4 billion yuan to build two 600MW coal-fired generating units in Shandong province.
The company said it would fund 20 per cent of the investment internally while the remainder would come from bank loans.
The generating units represent phase II of its Huaneng Rizhao Power Plant.
Huaneng Power, a unit of state-owned China Huaneng Group, plans to add 2,800 to 3,800 megawatts of new generating capacity this year, company chairman Li Xiaopeng said last month. That represents a 10.4-to-14.1-per-cent increase on a gross installed capacity of 26,912MW at the end of last year. In 2006, the company boosted capacity 20.9 per cent.
It has budgeted capital expenditure of 17.5 billion yuan this year - mostly to fund plant construction - up from 16.28 billion yuan last year.
China has raised its power-generating capacity by more than 12 per cent annually over the past three years but demand is expected to slow as output growth in heavy industries has been cut by government polices requiring the closure of inefficient and polluting plants.
Huaneng Power reported a better-than-expected 24.6 per cent rise in net profit to 6.07 billion yuan for last year.
Parent China Huaneng Group, the country's biggest power company, yesterday said its January-to-March sales rose 26 per cent to 23.9 billion yuan, Bloomberg reported.