A-Power Energy Generation Systems Makes Capital Contribution to Wind Farm Project Company in Texas

Shenyang Power Group, a subsidiary of A-Power Energy Generation Systems, has accomplished the formation of a project company for the purpose of developing a wind farm with a capacity of 600 MW in Texas. A $36.625 million initial cash contribution was made SPG for the project. The Chinese National Development and Reform Commission (NDRC) has given approval to go ahead with the project.

A-Power Energy Generation Systems is a leading distribution generation systems provider in China. The company also manufactures wind turbines. A Limited Liability Company Agreement was entered into by SPG with the United States Renewable Energy Group Wind Partners I on 16th December 2009. As per the agreement, both the companies have formed a Delaware limited liability company. The purpose of the new project company is to develop, manage and operate a 600-MW wind farm in Texas.

The total cost of the project is expected to be approximately $1.5 billion including the cost of wind turbines. The parties are expecting to obtain most part of the financing for this project from third party lenders. Wind turbines for the project are intended to be supplied by A-Power. About 70% of the wind turbines required for the project will be produced in the U.S. and during the entire 30-year life of the project, thousands of American jobs is expected to be created.