China Power Investment joins in developing Sichuan's hydropower sector

China Power Investment Corp has established a subsidiary in Chengdu, Sichuan province, to develop hydropower resources in the area.

The move makes CPIC the last of all five major power groups in China to establish businesses in Sichuan, a sign of the growing investment enthusiasm in the province's hydropower industry.

"The water resources in Sichuan are the second-largest in China," said Lu Qizhou, CPIC general manager. "The company's advanced technologies in coal, power and aluminum industries will help to accelerate the projects."

Hydropower generation increased by 36 percent year-on-year in May, according to the National Development and Reform Commission, showing the great potential of the nation's water resources in power generation.

CPIC's new company signed a cooperative contract with the Sichuan branch of the Bank of China, who will ensure 20 billion yuan or US$3 billion in credit to support the company's development in the region.

However, since the other four power groups have had hydropower plants operating years before CIPC, the new company could encounter difficulties in sharing the benefits in the area, said Lin Boqiang, a professor at the Center of China Energy Economics Research, Xiamen University.

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