French utility Suez, which is already active in the Chinese environment sector, has signed its first energy co-operation agreement with Shanghai Municipal Electric Power Company.

The areas of co-operation include the development of renewable energy sources, operating the electricity grid and optimizing energy efficiency.

Suez said that the agreement reflects the group’s interest in the Chinese energy sector where it is actively analyzing potential development opportunities, particularly environment friendly technology investments, including clean development mechanisms, in liquid natural gas and electricity equipment.