A-Power Receives NDRC Approval, Makes Cash Contribution

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Shenyang Power Group (SPG), a subsidiary of A-Power Energy Generation Systems Ltd., has established a company related to the development of a 600 MW wind farm in Texas and has made an initial cash contribution of $36.625 million.

In addition, SPG has received final approval from the Chinese National Development and Reform Commission (NDRC) to proceed with the project.

In December 2009, SPG entered into a limited liability company (LLC) with U.S.-based Renewable Energy Group Wind Partners I LLC (USREG Wind), which is indirectly jointly owned and controlled by U.S. Renewable Energy Group and Cielo Wind Power LP.

Under the LLC agreement, SPG and USREG Wind have established an LLC in Delaware for the purpose of owning, designing, developing, constructing, managing and operating a 600 MW wind project in Texas.

The project is expected to cost approximately $1.5 billion, a portion of which is designated for wind turbine purchases. The parties will be seeking to obtain financing from third-party lenders for most of the cost of the project. No financing commitments have been received to date.

A-Power has been designated to supply wind turbines to the project in Texas, and an affiliate of Cielo will develop the project pursuant to the terms of a development services agreement.

SOURCE: A-Power Energy Generation Systems Ltd.

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