Guangdong Offshore Wind Power Project
RMB 2 BILLION FOR OFFSHORE WIND POWER TO ACHIEVE A GREENER ENERGY MIX
Located on the South China Sea coast, Guangdong has been the largest contributor to China’s GDP since 1989, contributing about 11% to national economic output in recent years. The province, however, relies heavily on conventional sources of power generation. In 2017, coal-fired power plants accounted for over 55% of the province’s total generation capacity. To reduce the negative environmental impact created by the coal-dominant power generation system, the province is re-balancing its energy mix by focusing on cleaner energy sources. With a vast coastal area, Guangdong is seeking to substantially develop offshore wind energy to meet an ambitious target of 2 GW by 2020 and 30 GW by 2030.
NDB partnered in 2018 with the provincial government of Guangdong to construct an offshore wind farm in Yangjiang’s shallow water area for clean energy generation. The project comprises three main components: construction of foundation of wind turbines and generators (WTGs), supply of WTGs and project management. The total cost of the project is estimated at USD 871 million, of which about one third will be financed by NDB through a local-currency loan of RMB 2 billion (USD 291 million).
The project is expected to contribute to a greener energy mix by installing 300 MW offshore wind energy capacity, which could generate 810 GWh of clean electricity each year. This can help reduce coal consumption of about 247,000 tons annually, leading to carbon emission savings of about 500,000 tons per year. The reduced emissions could potentially help improve health conditions of local residents.
Moreover, the project is expected to benefit from NDB’s growing experience and expertise in offshore wind power development in China. Following its first investment in the Putian offshore wind power project in 2016, NDB has established a panel of international experts to provide technical assistance through know-how transfer and capacity building to offshore wind farm development in China, especially in typhoon-prone areas.