The wind power industry in China is expected to open to foreign investors soon, according to sources from the State Development Planning Commission.
For the first time, the central government will invite international tendering for a pilot 100,000-kilowatt wind power project, the sources said.
But the commission did not announce an accurate timetable for the pilot project.
The Basic Industries Department of the commission plans to build a 100,000-kilowatt wind farm within the next five years.
The State Power Corporation of China will be responsible for inviting international tendering for the project.
The corporation has proposed five wind farms each with an annual generating capacity of 100,000 kilowatts.
The foreign investor who wins the bid will be allowed to establish a joint venture or a wholly owned wind farm.
Electricity from the farms will go to local electricity networks, competing with electricity from other sources.
The price of the electricity will be quoted by the tender winner and will not change in 15 years, the commission said. But the price should be low to ensure competition on the networks.
The corporation will set a maximum price for the electricity from the wind farms.
To create favorable conditions for wind power to lower electricity prices, the commission suggested that related state policy banks provide 15-year preferential loans for the project.
The commission estimated that the average price would decrease by 0.10 yuan (1.2 US cent) per kilowatt hour if the 15-year bank loans made up 70 percent of the total invested in the project.
High prices due to high costs are one of the major factors holding back wind power from becoming a competitive option on China's power networks.
The commission and the State Administration of Taxation are also considering preferential taxation policies for wind farms.
Energy analysts say that wind power, an inexhaustible and clean resource, will play an important role in supporting China's energy consumption.
They forecast that the installed generating capacity of wind power in China will increase to 1 million kilowatts by the end of this year, compared with 17,100 kilowatts in 1993.
(China Daily 11/28/2000)
