[BEIJING] China Energy Engineering Group (Energy China) has signed a framework agreement with Erdos city government in Inner Mongolia to set up an integrated energy base with total investment of 23.8 billion yuan (S$4.84 billion) in the region.

The project will add 1 gigawatts (GW) wind power generation capacity and 5 GW solar capacity on top of the already planned 8 GW coal-fired power plants in Erdos, according to a statement issued by the state asset watchdog, SASAC, on Monday.

Energy China also plans to build some electricity storage facilities to go alongside with the integrated energy project, said the statement without revealing more details.

"Once launched, the integrated energy project will generate around 33 billion kilowatts-hours electricity each year, among which more than 41 per cent is expected to come from renewable sources," said the SASAC statement.

Amid the renewable energy boom and insufficient power carrying capacity from grids, China is encouraging energy companies and local government to add power storage facilities when building new solar and wind power projects in order to improve the stability and flexibility of the power grid.

Chinese President Xi Jinping announced at a United Nation summit earlier this month that China will boost its installed capacity of wind and solar power to more than 1,200 GW by 2030, and increase the share of non-fossil fuels in primary energy consumption to around 25 per cent during the same period.

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In November, Energy China signed a framework agreement with Chongzuo city government in southern Chinese region Guangxi to invest 82 billion yuan into a mega-sized city development project, including energy, transportation and mines restoration.

REUTERS