Chinese nuclear giant signs wind and solar investment deal

The China National Nuclear Corporation (CNNC), the state-backed company which overseas China's commercial and military nuclear operations, has signed a 'strategic co-operation agreement' with renewables firm China WindPower (CWP) through its renewables subsidiary, CNNC Rich Energy. The joint venture proposes to construct 100MW of new energy projects this year, and a further 500MW of wind and 200MW of solar power projects by 2015, according to a statement on CWP's website.

Energy law expert John Yeap of Pinsent Masons, the law firm behind Out-Law.com, said that the agreement reflected a desire by Chinese nuclear firms to diversify their energy portfolios as part of the country's policy to encourage the development of renewable energy generation.

"This joint venture comes on the back of the acquisition of Meiya Power Company (MPC) by the other Chinese nuclear player, China Guangdong Nuclear Power Corporation (CGNPC)," he said. "MPC has a large renewable energy portfolio in China. Both nuclear companies are therefore seeking to diversify their portfolios through the incorporation of renewable energy assets."

China passed its Renewable Energy Law, setting out policies to encourage the development of renewable energy generation capacity, in 2005. The country has set a 15% renewable energy target by 2020.

CWP operates more than 30 wind and solar projects across China. It had secured exclusive project development rights on a further 28GW of wind resources and 5GW of solar resources by the end of December 2012, according to its website. The CNNC is the successor to the Ministry of Nuclear Industry, the Government department which built China's first atomic bomb, hydrogen bomb and nuclear submarine. As a state-owned organisation, it was the first to build a nuclear power plant on the Chinese mainland.