Shanghai will spend 800 million yuan (US$103 million) in the construction of a new wind power plant in a coastal landfill area.

The plant, in an exposed landfill area overlooking the East China Sea, will be built by the Shanghai Environment Group and Shanghai Huadian Electric Power Development Co Ltd.

The two sides agreed on Tuesday to set up a joint venture, namely Shanghai Huagang Wind Power Generation Co, to oversee the project. The new company will place 200 million yuan (US$25.8 million) in investment for the first phase of the project, set to be completed by the end of 2007.

The plant should contain 15 1.5-megawatt wind power generators with a planned annual capacity of 46.96 million kilowatt-per-hour, saving 12,000 tons of coal compared with a thermal power station of similar size.

Landfill operations for the plant, stretching to 40,000 square meters, have already been completed.

The plant is a cornerstone of Shanghai's strategy to catch up with other regions in tapping into wind power.

Currently, three small wind farms generate a mere 25 MW of power for Shanghai's vast energy needs.

"By 2010 the total wind power capacity will be around 300 MW forming 2 percent of the city's total installed power capacity," said Li Xin, an official with the Shanghai Development and Reform Commission.

At the end of 2005, China had 62 wind farms in operation with a total energy capacity of 1,266 MW. The government has set itself a target of 5,000 MW for 2010 and 30,000 MW for 2020, by when, if the goal is reached, wind power will account for 3 percent of the country's total power needs.

(Source: Xinhua News Agency February 7, 2007)