(EnergyAsia, May 11 2012, Friday) — Unable to pass on costs to customers in a regulated industry, US power company AES Corp said it will sell most of its businesses in China for a total of US$134 million.

The NYSE-listed company expects to complete the sale of the assets with a total capacity of 2,727 MW by the second half of 2012, with more than half going to Singapore’s Sembcorp Industries. Its wholly owned subsidiary, Sembcorp Utilities, has agreed to pay a total of US$85.5 million for a 49% stake in four wind power assets and a 25% stake in a coal-fired power plant.

Sembcorp Utilities will acquire three wind power plants in Inner Mongolia and one wind power plant in Hebei with a total gross power capacity of 247.5 megawatts. AES held its stakes through four 49%-owned joint ventures with China’s Guohua Energy Investment Co, a leading wind power under the Shenhua Group Corp.

Sembcorp will also acquire a 25% stake in a cooperative joint venture, which owns, operates and manages a 2,100-megawatt coal-fired power plant in the province of Shanxi. The cooperative joint venture expires in 2016.

Tang Kin Fei, Sembcorp’s Group President and CEO, said:

“This acquisition strengthens our global energy portfolio and provides a platform to accelerate Sembcorp’s growth in the renewable energy sector. Sembcorp aims to have a portfolio of high efficiency thermal and renewable power generation assets including a growing component of low carbon capacity.

“We now have our first wind power assets in China, an important foothold to tap into the fast-growing and largest wind power market in the world. This transaction is set to extend Sembcorp’s presence in China as an established energy and water player. With the inclusion of Inner Mongolia and Shanxi, we will have utilities operations in 11 provinces across the country.”

Virginia-based AES said it has also agreed to sell its 49% interest in Jianghe Rural Electrification Development Company Ltd to its joint venture partner, China Three Gorges New Energy Corp for US$48 million.

“Narrowing our geographic focus and investing in our core markets better positions us for long term earnings growth,” said CEO Andres Gluski.

Since last September, the company has announced eight asset sale transactions totalling US$890 million.