National Power, the British electricity generating company, has been invited to take part in a US$2 billion power station project in Jiaxing, Zhejiang province.
The company may take a potential 20 per cent stake in the 2,680 MW project.
The remaining partners have yet to be finalised.
It is understood GEC Alsthom, the Anglo-French power station company, had been in the running to build the facility.
However, it appears to have been excluded after a decision to 'reconstitute' the consortium.
'The project had been with GEC Alsthom,' a National Power spokesman said. 'But the project was reconstituted with the state board, the provincial board, and GEC Alsthom had withdrawn.' GEC Alsthom had no comment yesterday.
The company has also been linked to another Chinese power project, in partnership with Electricite de France and Britain's Barclays Bank.
The deal is to build a 700 MW coal-fired power station, worth $450-500 million, at Laibin where another station already operates.
This deal is expected to be announced soon, although negotiations are continuing. A GEC Alsthom official in Paris said it was too early to make a statement.
National Power said the Jiaxing project, which will also be coal-fired, was still at the development stage, although the group was hopeful construction would begin soon.
'It is a development with Chinese partners, and I believe there is Chinese support,' the spokesman said.