Wind gives big lift to Datang Renewable
China Datang Corporation Renewable Power saw its net profit increase 60 per cent year on year to 729.8 million yuan (HK$892 million) in 2011 due to the expansion in its wind-power capacity.
Huaneng Renewables, a direct competitor to Datang Renewable, meanwhile saw its net profit nearly double to 1.02 billion yuan last year, on a 80 per cent increase in sales.
Datang Renewable said it was seeking to diversify into other energy projects such as solar and biomass. Mainland wind farm operators are facing challenges as they try to further increase scale in northern regions where high wind speeds favour their operations.
Northern grids have not kept pace with wind farm expansion in the region, limiting the amount of electricity the farms can pump into the network.
Datang Renewable president Hu Yongsheng said the National Energy Bureau planned to adopt a national quota for renewable energy, to encourage grids to expand the cable network for wind power.
'The quota will encourage more networks to be built for wind power and resolve the problem of over-supply in the north and the power shortage in the south in the long term,' Hu said.
But before this comes into effect, Datang will focus on developing wind farms in low-wind-speed regions, and set up more projects in central and eastern areas as well as six provinces along the south coast.
It is also pressing ahead with offshore wind farms in Binhai, Sheyang in Jiangsu and Hainan's Lingao Cape.
The company is seeking renewable projects in the United States. The Australian joint venture set up last year is still negotiating terms with target companies.
Shares in Datang closed unchanged at HK$1.41. Shares in Huaneng Renewables dropped 1.4 per cent to HK$2.06.