China’s Huaneng Power International is to acquire equity interests in a hydro power company in order to diversify its power generation portfolio.
Subject to approval from its shareholders and various Chinese government authorities, the plan includes the acquisition of a 1.6% equity interest in Sichuan Huaneng Hydro Power from the China Huaneng Group.
The acquisition would be part of a US$245M package to increase Huaneng Power’s generation capacity from 18,832MW to 19,978MW. It would also signal a change in direction of the company’s interests. Huaneng Power is one of China’s largest independent power producers, but until now has focused exclusively on thermal power plants.
‘In light of the strong increase in demand for power and shortage of coal supply in China,’ explained Huaneng Power,’ the acquisitions of hydro power assets will rationalise the company’s fuel structure.’