Three Gorges Corp to Look Beyond Hydro Power for New Business Opportunities
China’s Three Gorges Corp is planning to explore solar, wind, nuclear and other forms of new energy beyond its core business as hydro power opportunities is declining. Bi Yaxiong the vice general manager for the company which is behind the largest hydro power plant in the Yangtze River, stated that they are planning to construct itself into a clean energy conglomerate with a total capacity of 100 gigawatts by 2020.
At the Clean Energy Expo China last Friday, the state owned company develop more huge dams and pumped storage facilities near the river in the span of five years, namely the Wudongde and Baihetan that are both downstream of the Yangtze tributary. The Jinsha River hols it position as the world’s largest hydro power company for the next five years. once the ongoing construction is completed, it will spread its wings locally and abroad to look for new type of energy projects. Still they will maintain its advantage in the hydro power business, but will be looking into domestic offshore wind power and try to create an offshore Three Gorges Dam.
The CTG is serious in diversifying its business even with new hydro power projects are in decline. Analysts say that small and medium sized hydro power projects remain untapped especially in the southwestern part of China leaving only a small room for growth. Other new energy sectors such as solar, wind and nuclear are expanding in such as fast pace, making it clear that those invested in hydro power will be shifting to other businesses.
State owned companies are planning t o leverage domestic experience to help overseas growth by 20 percent by 2020. Plans on building and operating hydro power projects in Brazil, Myanmar, Pakistan, Laos and Russia. This CTG overseas projects are already launched out it strategic consideration and is aiming for a long term profitability instead of getting its invest back as quickly as possible. CNEC is also developing joint project with Tsinghua University a high temperature gas cooled reactor an indigenous nuclear technology. The project is located at Shidao Bay in the Shandong province and is expected to start building later this year.