Datang International Secures Government Approval for Three Coal-Fired Power Plants in China

Strategic Insights -

Datang International Power Generation Co Ltd, China's second-largest electricity producer, has been given the green light by the National Development and Reform Commission to build three coal-fired power plants in the coastal regions of Zhejiang, Guangdong, and Fujian provinces. The plants will have a combined investment of 21 billion yuan (US$2.6 billion) and a total installed capacity of 4,800 megawatts (MW). The company has also acquired a 28 per cent stake in a coal mine to secure supplies for the plants. This strategic move aims to reduce market risks and expand Datang International's business presence beyond northern China.

Key Takeaways:

  • Datang International has received approval to build three coal-fired power plants in Zhejiang, Guangdong, and Fujian provinces with a combined investment of 21 billion yuan (US$2.6 billion).
  • The plants will have a total installed capacity of 4,800 MW, with the Datang Wushashan Power Plant Phase-I project in Zhejiang being the largest, requiring an investment of 9.449 billion yuan (US$1.16 billion).
  • Datang International has acquired a 28 per cent stake in a coal mine owned by Shanxi-based Datong Coal Group to secure supplies for the plants.
  • The mine, still under development, will be able to supply 10 million tons of coal to the power plants when they are built within a few years.
  • The company aims to reduce market risks by stretching its plant alignment across the country and create a niche in western regions with preferential policies and coastal regions with stronger purchasing power.
  • Datang International currently has a total installed capacity of 11,210 MW.

Statistics:

  • Total investment for the three power plants: 21 billion yuan (US$2.6 billion)
  • Total installed capacity of the three power plants: 4,800 MW
  • Datang Wushashan Power Plant Phase-I project investment: 9.449 billion yuan (US$1.16 billion)
  • Total coal supply from the Shanxi-based Datong Coal Group mine: 10 million tons
  • Datang International's current total installed capacity: 11,210 MW
  • Investment for the two plants in Guangdong and Fujian: 5.953 billion yuan (US$734 million) and 5.48 billion yuan (US$676 million)

Sources:

  • Asia Pulse, "Datang International Power Generation Co. Ltd." (Aug 25)
  • Datang International Power Generation Co Ltd press release (Aug 24)