BEIJING (AFX-ASIA) – State Grid Corp, the former monopoly in China’s power industry, has transferred 13 generating subsidiaries, which have a total production capacity of 4,640 MW, to Huaneng Group at no cost, the China Daily said.
The newspaper said the assets account for 18% of Huaneng’s existing capacity of 25,660 MW.
It said the assets include State Grid’s 27 pct stake in Yunnan Huaneng Lancangjiang Hydropower Co Ltd, which is building the Xiaowan Hydropower Station, China’s second-largest hydropower plant after the Three Gorges project.
Huaneng has become the major shareholder of the 12 power plants, with the exception of the one in the eastern Chinese province of Zhejiang, the newspaper said.
It quoted Huaneng’s chairman Li Xiaopeng as saying most of the assets are of good quality, and they are new plants with advanced technologies and are the main power suppliers in key areas.
Mr Li said Huaneng aims to double its generating capacity to 60,000 MW by 2010, and become a Fortune 500 company.
The newspaper said the transfer of assets is a step forward to push through anti-monopoly reforms in China’s power sector.
It said the reforms require State Grid, which controls half of the nation’s power plants and almost all of the transmission and distribution lines, to inject all of its generating assets into the five competing state-owned generating groups.
The other groups are China Huadian Group, China Guodian Group, China Power Investment Group and Datang Group, it said.
It added that about 500 plants with a total generating capacity of 163,000 MW will be transferred to the five groups.