Pow­er­ing the world, cleanly

China Three Gorges Corp’s am­bi­tious ex­pan­sion has made it the in­dus­try leader

China Daily (USA) - - BUSINESS - By ZHENG XIN zhengxin@chi­nadaily.com.cn

Back in 2008, ‘Three­Gorges’ had al­ready be­come the world’s big­gest hy­dro­elec­tric dam.

Yet, for China Three Gorges Cor­po­ra­tion, which built the dam, it marked not an end but the be­gin­ning of a long jour­ney — a jour­ney of am­bi­tious ex­pan­sion, to be­come one of the world’s premier en­ergy groups.

The last eight years’ fig­ures sug­gest CTG is well on its way to re­al­iz­ing its am­bi­tion. “Three Gorges Cor­po­ra­tion, which was once lag­ging other lead­ers in the hy­dro­elec­tric sec­tor, is proud to an­nounce it­self as a leader of the in­dus­try now,” said Lin Chuxue, ex­ec­u­tive vice-pres­i­dent of CTG.

That’s not an empty boast. CTG now has a to­tal ca­pac­ity of more than 13 GW over­seas, en­abling it to be­come a ma­jor player in the global clean en­ergy mar­ket.

CTG’s over­seas elec­tric­ity gen­er­a­tion reached 20 bil­lion kilo­watt-hours this year, mainly from hy­dro power, wind power and so­lar power. Its fa­cil­i­ties are scat­tered across the globe, in­clud­ing in Brazil, Ger­many, Greece, Pak­istan and Laos.

The com­pany ex­pects that by 2020, about 15 per­cent of its rev­enue will be gen­er­ated over­seas.

Lin said the com­pany aims at not only the de­vel­oped Euro­pean and Amer­i­can clean en­ergy mar­kets but those en­dowed with abun­dant hy­dro­elec­tric and new en­ergy re­sources. He sees huge mar­ket de­mand in Africa and Latin Amer­ica.

The Ama­zon area and the Parana re­gion in Brazil, which have rich hy­dro­elec­tric re­sources, have al­ways been a ma­jor fo­cus of the com­pany, he said.

CTG has re­cently agreed to ac­quire Duke En­ergy’s 2,090megawatt busi­ness in Brazil for $1.2 bil­lion, to fur­ther strengthen its Brazil­ian sub­sidiary as a top-tier clean en­ergy gen­er­a­tor in the coun­try.

Af­ter the ac­qui­si­tion is com­plete, CTG Brasil will in­crease its clean en­ergy gen­er­a­tion port­fo­lio by 2.27 GW, reach­ing a to­tal of 8.27 GW of ca­pac­ity un­der its man­age­ment and on pro­por­tional eq­uity hold­ings.

This came af­ter the com­pany won 30-year con­ces­sion rights to op­er­ate two ma­jor hy­dro­elec­tric projects, the Ilha Solteira and Ju­pia plants, in Brazil, with a to­tal in­vest­ment of $3.7 bil­lion last year.

So far, CTG has in­vested in seven hy­dro­elec­tric projects and 11 wind power projects in Brazil.

Be­ing the sec­ond-largest pro­ducer of hy­dro­elec­tric power in the world, Brazil is high in CTG’s in­vest­ment port­fo­lio, as the coun­try strives to build dams to meet its grow­ing en­ergy de­mand, said Lin.

Wang Shaofeng, ex­ec­u­tive vice-pres­i­dent of the cor­po­ra­tion, told China Daily in a pre­vi­ous in­ter­view that CTG plans to use Brazil as a base to tap into other South Amer­i­can coun­tries such as Chile, Peru and Colom­bia, all of which have rich wa­ter re­sources and ex­pe­ri­ence of dam con­struc­tion.

“We have been present in the Brazil’s hy­dropower mar­ket for sev­eral years. For most of the projects, we par­tic­i­pated through cap­i­tal in­vest­ment,” he said. “But with our rich ex­pe­ri­ence, we can do more in Brazil.”

Lin said the in­creas­ing con­sen­sus be­ing reached world­wide is that the en­ergy struc­ture should shift from coal to cleaner al­ter­na­tives like nat­u­ral gas, hy­dropower and wind power. This, he said, is very ben­e­fi­cial to CTG’s global play.

“We are co­op­er­at­ing world­wide with pri­vate con­sor­tiums, gov­ern­ments as well as multi­na­tional cor­po­ra­tions for our global con­struc­tion projects,” said Lin.

He said the cor­po­ra­tion now has over­seas op­er­a­tions in more than 40 coun­tries and re­gions, in­clud­ing more than 80 en­ergy project in­vest­ments, power plant man­age­ment op­er­a­tions, con­struc­tion project con­tracts and en­gi­neer­ing-pro­cure­men­tor EPC con­tract.

“More and more Chi­nese com­pa­nies, State-owned as well as pri­vate, are eye­ing the go­ing-global strat­egy, en­cour­aged by the Belt and Road Ini­tia­tive and other such poli­cies,” he said.

“It’s good news for the Three Gorges Cor­po­ra­tion to see more of our peers go­ing global, for us it’s more of co­op­er­a­tion than com­pe­ti­tion.”

of the com­pany’s rev­enue will be gen­er­ated over­seas by 2020

REN WEIHONG / FOR CHINA DAILY

Tourists get pho­tographed in front of the Three Gorges dam in this file photo.

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