CWP is pleased to announce that the 40 megawatt (“MW”) solar power plant operated by the Group in Pingyuan County, Shandong Province, completed on-grid connection and commenced electricity generation on 30 November 2014. The on-grid tariff and the Shandong government subsidy of the Pingyuan Plant are RMB 1 per kilowatt hour (“Kwh”) and RMB 0.2 per Kwh respectively. The expected utilization hours of the Pingyuan Plant for the first year of operation is approximately 1,398 hours.
The 200 MW solar power plant operated by the Group in Shenmu County, Shaanxi Province, (the “Shenmu Plant”) is expected to complete on-grid connection and commence electricity generation on 8 December 2014. The on-grid tariff of the Shenmu Plant is RMB0.95 per Kwh and the expected utilisation hours of the Shenmu Plant for the first year of operation is approximately 1,460 hours.
The Group has been enriching its solar resources and reserving sufficient solar resources in premium areas since it entered the solar power business in 2011, its rich installed solar capacity has been rapidly increased. The commissioning of the two power plants also signifies that development of the Group in regions that are not subject to grid congestion, the investment strategy emphasizing on solar power plant was successfully implemented. The ratio of solar installed capacity to the Group’s total installed capacity was greatly increased. As the Chinese Government launches solar power supportive policies, the Group will largely invest in solar power plants and further increase the installed capacity of its solar power business.