China Datang Corp, the Chinese power producer with investments in Laos, Cambodia and Kazakhstan, plans to explore the African market as the global financial crisis slows domestic demand for electricity.
China's second-biggest power producer signed an accord with the China-Africa Development Fund, initiated by President Hu Jintao in 2006, to help develop "electricity and relevant industries" on the continent, China Datang said on its Website yesterday. The parent of Hong Kong-listed Datang International Power Generation Co gave no details, Bloomberg News said.
The global recession has slashed demand for Chinese exports, resulting in a drop in domestic electricity use and prompting generators such as China Datang to look overseas for expansion. Africa needs to attract investments of US$300 billion over the next 20 years to build its energy infrastructure.
The US$5-billion China-Africa fund was created to help domestic firms invest in Africa. Shenzhen Energy Investment Co, partly owned by Huaneng Power International Inc, and the fund may build a US$151-million gas-fired plant in Ghana. Sinohydro Corp won a hydropower plant deal in Kenya this year.
China may face a surplus of electricity in two years as demand falls and more capacity comes online, a deputy energy director said last month.
(Shanghai Daily January 9, 2009)
