Liaoning Province in northeastern China is one of the nation's old heavy industry bases. As such, it is a big energy consumer. The region's power grid is dominated by thermo-power generation that consumes, and requires transportation of, large amounts of fuel. Gaps in power supply have long been a major obstacle to Liaoning's local economic growth.

Since promulgation of the Renewable Energy Law in 2005, which stipulates optimum wind power generation across the nation, the Liaoning provincial government has focused on its rich wind resources.

Liaoning, with its open, flat terrain is eminently suitable for wind power generation. The Changtu Wind Power Plant in Changtu County, Tieling City, currently under construction, covers a 28-square-kilometer area of gentle slopes 220 to 390 meters above sea level. The local 50-meter mean wind speed is 7.2 m/s and its wind power density is 421.1 w/m², according to data collected from September 2003 to September 2005.

The region has huge wind power reserves due to its monsoon climate, and its level terrain facilitates transportation, equipment installation and power transmission. Liaoning is consequently the perfect location for a large wind power plant.

Upon completion the Changtu Wind Power Plant will be the biggest of its kind in the province. Its planned capacity is 99,000 KW. The first-stage project involves the installation of 66 generating sets of a total 49,500 KW capacity, The RMB 428.89 million-invested plant will begin operating in December 2006, and is expected to redeem its original investment in ten years.

The Changtu Plant is co-funded by the Liaoning Energy Investment Group - the main investor -- and Golden Concord Holdings Ltd. The Lioning Energy Investment Group is a solely state-funded company authorized by the Liaoning government to handle the province's state assets and electricity funds. The group is also a state-owned conglomerate under the Liaoning Province State-owned Assets Supervision and Administration Commission, and manages the province's thermal, wind and nuclear power assets. It has previously invested in and operated hundreds of large power projects, and has either shares in or control over thermal power plants of a total 5.8 million kw capacity. The Liaoning Energy Investment Group has also participated in the construction of key projects in other sectors, such as the Fushun and Panjin ethylene plants.

In recent years the Liaoning Energy Investment Group has invested a total RMB 600 million in the Donggang and Faku wind power plants, the Shenyang Economic Development Zone thermal power plant, the Five Girls Mountain Ice Wine Factory in Huanren, Benxi City, and the Liaoning Good Breed Import and Cultivation Center agricultural demonstration garden, in accordance with provincial government planning.

The Changtu Wind Power Plant currently under construction.

Guided by the province's 11th Five-Year Plan (2006-2010), the Group is working on the Tieling Power Plant stage II expansion project, the two one-million-kw generating-set expansion project at the Suizhong Power Plant, and on installation of two 600,000-kw generating sets in Bayanhua, Inner Mongolia.

In the light of China's industrial policies and international demand, the group is also increasing its input into the new and renewable energy sectors. It has signed contracts with the local governments of areas with rich wind resources, and in the coming years will build wind power plants amounting to a 550,000-kw capacity.

The Liaoning Energy Investment Group has abundant capital, a dominant position in the wind power market and the backing of provincial capital Shenyang's robust manufacturing industry. In order to meet the needs of the domestic market and cut costs, the group seeks to produce wind power generators locally, in cooperation with overseas companies.

The group is also making inroads into other power generation fields. It has plans to build the first straw-fueled power plant in Liaoning, and has also invested substantially in Liaoning's Hongyanhe Nuclear Power Station.

The Liaoning Energy Investment Group is open to cooperative arrangements with competitive international companies that deal in new and renewable energy. Both sides stand to benefit -- from both sharing resources and each other's complementary strengths.