China Huadian Corporation has announced plans to set up a new renewable energy company.

CHC will invest RMB102 million in the new company, China Huadian Group New Energy Development Co., Ltd. for 51% of its total stake, with the remainder owned by a consortium of four other businesses. It will also gradually inject its hydropower, pumped storage and wind power business in Zhejiang, Hubei, Inner Mongolia and Xinjiang to the new company in the coming three years, according to development demand.

According to China's new energy industry policy, power operators with more than 5 million KW capacity must have new energy account for over 8% of their total capacity by 2020.

Set up in 2002, CHC is a wholly state-owned enterprise approved by the State Council and established on the basis of institutions formerly owned by State Power Corporation of China as a pilot entity. Its approved main businesses include production and supply of electricity and heat, development of power-related primary energy such as coal and supply of pertinent technological service.