The diversified investment group said it would pursue acquisitions and joint ventures in China and internationally to build a hydro portfolio of between 150MW and 1GW within one to four years.
China Holdings said that it would also be working on the strategy with its energy subsidiary, China Power.
The strategic move comes as energy costs rise and climate change concerns with commensurate carbon trading possibilities arise, making the relatively low-cost hydro sector more attractive to investors. The group noted that operational cost per kWh for hydro are about a quarter to a third of those for coal and nuclear power.
In addition, it further noted that according to China Energy Research Institute’s 2006 report, total hydro power capacity in China reached 115GW in 2005, and is forecast to reach 180GW in 2010. By 2020, China is expected to have 300GW of installed hydro.
New build and operations do not feature as a prime focus of China Holdings’ ambitions in hydro power. It states that it is a development stage company that aims to be a holding group for energy investment.
