China’s state-owned Three Gorges Energy has announced an ambitious plan to invest approximately CNY 71.848 billion (about $10.09 billion) in an integrated renewable energy base in the Taklamakan Desert, located in the Xinjiang region. This project marks a significant step in China’s commitment to enhancing its renewable energy capacity.
Project Overview
The investment will facilitate the development of 8.5 GW of solar power, 4 GW of wind power, and six ultra-supercritical coal-fired units, each with a capacity of 660 MW, totaling 3.96 GW of coal power. Additionally, the project will incorporate 5 GWh of electrochemical energy storage. This integrated “wind-solar-fire-storage” model aims to optimize energy generation and distribution.
Leadership and Investment Structure
The investment will be spearheaded by Three Gorges Bazhou Ruoqiang Energy Co. Ltd., a subsidiary of Three Gorges Energy. The shareholders include China Yangtze Power Co. Ltd., Three Gorges Capital Holdings, and Yangtze Three Gorges Investment Management Co. Ltd., holding stakes of 34%, 33%, 16.5%, and 16.5%, respectively. The registered capital will constitute 25% of the total investment, approximately CNY 18 billion, with the remainder sourced from syndicated loans and financial leasing.
Energy Transmission and Impact
A significant portion of the electricity generated will be transmitted via ultra-high voltage direct current (UHVDC) lines currently under construction, connecting southern Xinjiang to the Sichuan and Chongqing regions. The overall construction period is expected to last three to four years, with timelines adjusted based on the progress of coal-fired projects and electricity transmission lines, ensuring synchronized energy generation and consumption.
Once operational, the project is projected to deliver approximately 36 TWh of clean electricity annually to the Sichuan and Chongqing regions. Furthermore, it aims to contribute to sand control efforts in the Taklamakan Desert, addressing environmental challenges in the area.
Regulatory Approvals and Financial Performance
Three Gorges Energy has confirmed that all relevant renewable energy projects have secured construction indicators and are progressing through the pre-approval process. The supportive coal-fired project has received essential approvals, including environmental impact assessments; however, land use permits are still pending. Preparatory work is ongoing in an orderly manner.
In a related financial update, Three Gorges Energy released its third-quarter report for 2024, reporting a revenue of CNY 21.76 billion for the first three quarters, reflecting a year-on-year increase of 12.81%. Despite this growth, net profit saw a decline of 6.31%, amounting to CNY 5.093 billion.
Sources
- Three Gorges Energy Company Reports
- Xinjiang Energy Statistics
- Environmental Impact Studies
