Climate Change: China Power International Development acquires US$1.12 billion in clean-energy assets, eyeing transition goals

The Hong Kong-listed subsidiary of state-owned State Power Investment will acquire wind, solar, biomass and waste-to-energy projects from its parent

By 2025, CPID aims to have clean energy account for 90 per cent of its installed onshore capacity and 70 per cent of its revenue

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Wind and solar projects are among the assets CPID is acquiring from its state-owned parent company. Photo: Shutterstock

Published: 2:17pm, 4 Jul 2022Updated: 10:53am, 7 Jul 2022

China Power International Development (CPID), the Hong Kong-listed subsidiary of state-owned State Power Investment, has agreed to buy 7.5 billion yuan (US$1.12 billion) worth of clean-energy projects from its parent.

The injection of the wind, solar, biomass, and waste-to-energy projects amounts to 2.15 gigawatts of generating capacity – 7.4 per cent of CPID’s total capacity at the end of last year. This would help the company meet its goal of having over 70 per cent of its total capacity and over half its revenue come from clean energy by the end of next year.

“The acquisition of clean-energy assets such as wind, photovoltaic and environmental-power assets … will further increase the proportion of clean energy assets in the group’s power-generation portfolio, in line with its strategies,” CPID said in a filing to Hong Kong’s bourse late on Sunday.

By 2025, CPID aims to have clean energy account for 90 per cent of its installed onshore capacity and 70 per cent of its revenue, according to its sustainability report published in May.

Sheep graze among solar panels near Huangjiao village in China’s northern Hebei province. The nation is aiming to almost double its wind and solar generating capacity this year. Photo: AFP

Reducing reliance on fossil-fuel power plants and replacing them with clean-energy alternatives will help China achieve its twin goals of hitting peak carbon emissions before 2030 and carbon neutrality by 2060. Coal and natural gas-fired electricity accounted for 65 per cent of all the power sold by CPID last year.

Beijing has set a goal of reaching total wind and solar capacity of 1,200GW by 2030, almost double the 635GW in place at the end of last year. It also aims to have 25 per cent of total energy consumption come from renewable sources by 2030, compared with 20 per cent in 2020.