Two wind power companies were among the biggest gainers on the Hong Kong stock exchange yesterday, after the National Development and Reform Commission (NDRC) approved four wind power projects totalling 57.2 billion yuan (HK$71.1 billion).
The share price of Huaneng Renewables rose 6.67 per cent yesterday, making it the third-biggest gainer among Hong Kong-listed companies with market capitalisation of HK$5 billion or more.
China Datang Corp Renewable Power's shares rose 4.4 per cent, making it the seventh-biggest gainer.
The NDRC announced yesterday it had approved a 24.2 billion yuan wind power project in Jiuquan prefecture, Gansu province.
The project comprises eight wind farms, with a total installed capacity of three gigawatts, to be invested in and built by eight firms, including China Guodian, a state-controlled power firm.
Approval was also given to a 16.18 billion yuan wind power project in the city of Hami in Xinjiang, comprising 10 wind farms, with a total installed capacity of 2GW, to be invested in and built by 10 firms, including CLP, a Hong Kong-listed power firm.
The commission also approved a 13.59 billion yuan wind power project in Baotou city, Inner Mongolia.
That project will comprise seven wind farms, with a total installed capacity of 1.4GW, and will be invested in and built by seven firms, including China Huadian, a state-owned power company.
Also in Inner Mongolia, the NDRC approved a 3.23 billion yuan wind power project with an installed capacity of 400.5 megawatts in Chifeng city, to be invested in and built by Datang Renewable.
"China's impressive growth in wind capacity in recent years is mainly a result of the government's focus and commitment to developing the sector," a Deutsche Bank report said. "China aims to consume 15 per cent of its primary energy from non-fossil fuels by 2020."
However, the report said, "China wind developers have been plagued by a multitude of headwinds in the past 12 months".
These problems include wind farm accidents and lower than expected utilisation rates in Inner Mongolia and the northeastern provinces.
At the present rate of wind power growth and development of grid connections, Deutsche Bank forecasts the mainland's wind power capacity will exceed 120GW by 2015 and 200GW by 2020.
A total wind power capacity of 18GW was added last year on the mainland, which has the greatest wind power capacity in the world, the bank said.
The country's wind power capacity exceeds that of its nearest rival, the United States, by more than 15GW, the report said.