France's EDF Group has signed a breakthrough deal for a Western company, to participate in constructing and operating two offshore windfarms in China.
The company signed the agreement during an official visit to France by Xi Jinping, President of the People’s Republic of China.
The agreement formally establishes a partnership with the Chinese power utility China Energy Investment Corporation to jointly deliver two offshore wind power projects, Dongtai IV and V, offshore Jiangsu Province, with a total installed capacity of 500 MW.
Jiangsu Province has recently approved 24 offshore wind projects with a combined capacity of 6.7 GW. The Xinhua news agency said sources at Jiangsu Electric Power Co had confirmed the project approvals, which highlights the fast-growing nature of the offshore wind market in the country.
As highlighted here, recent analysis by Bloomberg New Energy Finance suggests that China is assuming the mantle of the world’s largest offshore wind market.
The projects will be the EDF Group’s first offshore projects in China and also represent a breakthrough in the Chinese offshore wind market for a Western company.
Dongtai IV is currently under construction, with construction of Dongtai V scheduled to begin later in 2019. Subject to signing the final contracts, the partners will build and operate the windfarms and gradually commission them by 2021.
“With 3.8 GW of offshore wind capacity already in operation, China is a promising market which should continue to grow quickly and account for nearly half of global capacity by 2030, with 50 GW in operation,” EDF said.
EDF Group chairman and chief executive Jean-Bernard Lévy said, “The agreements signed today consolidate EDF’s foothold in China, a strategic country for the group’s international expansion. In China, EDF is now active in all main business segments, helping the group to support China’s energy ambitions while reducing CO2 emissions with nuclear, renewables and energy services.”