Huaneng International is reported to have put up some port assets for sale. Largely used for handling coal to feed plants using the highly polluting fuel, the assets being offloaded are a sign the power group is accelerating its clean energy push.
In fact, earlier this month, the company announced the approval of two new wind farm projects — Guizhou Pan County Jiaoziding Wind Farm and Dapanshan Wind Farm.
In October, Huaneng International decided to inject more capital into a subsidiary, Sichuan Hydro Power, to provide it with more development resources.
The company is moving in the right direction but it’s painfully slow. A lot more needs to be done before it can become a significant green energy player.
In 2012, coal-fired units accounted for about 4,663 megawatts (MW) of the company’s newly commissioned capacity. Wind power and hydropower both made up less than 100 MW.
Clean energy constitutes a tiny portion of Huaneng’s 66,341-megawatt power portfolio, so small that its revenue contribution did not merit a separate mention in its annual report.
It’s not clear how important a role Huaneng International will play in beefing up Huaneng Group’s clean power assets when sister company Huaneng Renewables (00958.HK) is already spearheading the group’s wind power effort.
China’s anti-pollution policy will only get more stringent over time and new energy investments are expected to get all sorts of subsidies, making green energy the best way forward for power companies.
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