The joint venture provides power generation products and solutions for coal-fired and gas-fired power plants as well as for the conventional part of nuclear power plants
– By Chris Smith –
Siemens Energy is to increase its share in Shanghai Electric Power Generation Equipment Co., Ltd. (SEPG) from 33.7 percent to 40 percent. The share increase in the joint venture with Shanghai Electric Group has already been approved by the authorities.
The joint venture provides power generation products and solutions for coal-fired and gas-fired power plants as well as for the conventional part of nuclear power plants.
Siemens and Shanghai Electric also intend to set up a new service joint venture for the rapidly growing Chinese steam and gas turbine power plant market. It is intended to conclude discussions in the second half of 2010. Further cooperation in renewable energy business with Shanghai Electric is envisaged.
“The share increase in the joint venture is another important step for Siemens to enforce its market penetration in the huge Chinese energy market and underlines our successful strategic partnership with Shanghai Electric,” said Wolfgang Dehen, CEO of Siemens’ Energy Sector.
“Power demand in the fast-growing Chinese economy is expected to rise on average by four percent annually over the next two decades. Together with Shanghai Electric we are committed to promoting sustainable development in China’s power industry.”
Siemens has been one of the first companies to put a major focus on energy efficiency and is committed to applying its extensive power technologies to help Chinese customers improve their energy performance while lowering their environmental impact. Siemens Energy maintains 24 operating companies in China, thereof eight are operated together with Shanghai Electric.
By 2030, power generation in China will more than double. Coal-fired plants will keep their pole position – however, according to Siemens’ projections their share will drop from 75 percent to two-thirds.
Renewables-based power generation and nuclear power will be the main winners of the change in the energy mix. China plans to have available an installed wind power capacity of up to 150 gigawatts by 2020.