China Power Investment Corp, one of the nation’s five major power companies, established a subsidiary in Chengdu, Sichuan province, on Monday to develop hydropower resources in the area.
Now, all five major power groups in China have businesses in Sichuan, a sign of the growing investment enthusiasm in the province’s hydropower industry.
CPIC’s new company signed a cooperative contract with the Sichuan branch of the Bank of China, and the bank will ensure 20 billion yuan ($3 billion) in credit to support the company’s development in the region, according to Xinhuanet.com.
Lu Qizhou, CPIC general manager, said the company will work on energy projects in Sichuan.
“The water resources in Sichuan are the second-largest in China,” he said. “The company’s advanced technologies in coal, power and aluminum industries will help to accelerate the projects.”
Hydropower generation increased by 36 percent year-on-year in May, according to the National Development and Reform Commission, showing the great potential of the nation’s water resources in power generation.
However, since the other four power groups have had hydropower plants operating years before CIPC, the new company could encounter difficulties in sharing the benefits in the area, said Lin Boqiang, a professor at the Center of China Energy Economics Research, Xiamen University.
