China Yangtze Power to Invest in Siberian Hydropower Projects
Oct. 13 ï¿½ Russiaï¿½s second-largest electricity producer, EuroSibEnergo
PLC, and hydropower producer China Yangtze Power Co. (CYPC),
headquartered in Beijing, have signed a framework agreement of
cooperation for the development of hydropower projects in Russia.
EuroSibEnergo, formerly called En+Power, is a subsidiary of EN+Group
owned by Russian billionaire Oleg Deripaska.
The company possesses 14 power stations in Siberia and is Russia's
largest privately controlled power operator. With a total capacity of
19.5 gigawatts, EuroSibEnergo generated almost 9 percent of the
countryï¿½s electricity and produced 82.8 billion kilowatt hours of
electricity last year.
CYPC is China's largest listed state-run hydropower corporation
operating hydropower plants on the Yangtze River, including the world's
largest hydropower plant the Three Gorges Dam. The actual capacity under
the companyï¿½s operation and management has reached 12.58 megawatts. The
company sells its electricity mainly to central and eastern China.
The signed agreement of cooperation upgrades EuroSibEnergo's power
assets and the provides for the construction of new hydro power plants
in Russia, with specific focus on Siberia, according to a company press
release. These projects aim to feed the growing domestic demand for
electricity anticipated in the region and to create additional capacity
for power exports from Siberia to the northeastern regions of China.
"Russia, the Siberian region in particular, has significant undeveloped
hydroelectric resources. This agreement strengthens energy cooperation
between Russia and China," said Andrey Likhachev, chairman of EuroSibEnergo.
"Russia has an abundant supply of hydro power resources and China has
enormous demand for power. Our joint development of hydro power resource
is strategically important for the business development of companies
involved and also for Sino-Russian cooperation," Cao Guangjing, CYPC
chairman, said in a statement.
Russian oligarch Oleg Deripaska is valuing his electricity producer
EuroSibEnergo at around US$ 8 billion ahead of a planned Hong Kong
initial public offer this autumn. EuroSibEnergo has hired China's BOC
International and Deutsche Bank AG as joint consultants to support its
US$2 billion Hong Kong IPO, sources close to the deal told reporters
earlier this year.
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