CGN signed an agreement with Italian energy giant Enel for a 100 percent equity purchase of its Gamma new energy project in Brazil on June 24 to enter the South American clean energy market. A plaque was unveiled for CGN Brazil Energy Holding Co Ltd.
2019 marks the 45th anniversary of the establishment of diplomatic ties between China and Brazil, and the first year of BRICS’s second golden decade. The launch of CGN's first project in Brazil represents another solid step for the Belt & Road Initiative in Brazil, said He Yu, chairman of CGN.
The Gamma project, which was put into operation in the second half of 2017, is located in northeast Brazil. It encompasses two in-service solar power projects with a combined installed capacity of 450 MW and a 90 MW in-service wind power project.
Another CGN-acquired Brazilian clean energy project will complete equity transfer soon, making the company the fifth largest clear energy power generator in Brazil.
Brazil has a vast territory and abundant renewable energy resources. Currently, the country focuses on hydropower, which is limited in its further development. It will shift its focus to wind power and solar energy in the future.
According to the 10-year plan released by Brazil in 2016, the installed capacity of wind power and solar power will reach 26 GW and 13 GW respectively by 2026. As of the end of 2018, the installed capacity of wind power was 14.6 GW and solar power was 2.06 GW. Brazil's electricity market is mature, and its national power grid has no curtailment on wind and solar power.
China and Brazil are the largest developing countries in the eastern and western hemispheres respectively. Brazil is China's largest trading partner in South America. The Chinese government regards Brazil as an important fulcrum of the Maritime Silk Road stretching to South America. Investment and cooperation have become new driving forces for the development of bilateral relations.
Yang Wanming, Chinese ambassador to Brazil, noted that the high-level economic cooperation between the two countries has been mutually beneficial. The acquisition of the Gamma project by CGN and the establishment of CGN Brazil Energy Holding Co Ltd is an important step forward for China and Brazil in new energy investment and cooperation.
With this as a starting point, CGN will expand its clean energy business from Brazil to its neighbors such as Mexico, Argentina, and Chile before covering the whole of South America. In addition, the company will also fulfill its social responsibilities in environmental protection, community construction, non-profit organizations, business integrity, and charity activities, He said.
CGN is China’s largest and world’s third largest nuclear power enterprise that has made great contributions to the Belt & Road construction. Not only has it made major breakthroughs in the fields of nuclear power, nuclear fuels, and new energy, but it has also seen its nuclear power plant digital I&C system and non-power nuclear technology go global.
So far, CGN has operated its business in more than 20 countries. As of the end of 2018, the proportion of its overseas assets has reached 18 percent, and its number of overseas employees has exceeded 4,000. This puts it in first place among state-owned power enterprises by internationalization.
New energy, including wind power, solar power, gas power, combined heat and power, biomass energy, as well as fuel cell, is an important business sector of CGN. The company has been exploring overseas clean energy markets since 2010, and now possesses market share in Southeast Asia, Egypt, Bangladesh, France, South Korea, Brazil, and other countries and regions.
To date, the installed capacity of CGN-held projects under construction or in operation had reached 13.91 GW, making the company the largest independent power producer in Malaysia and Egypt, the fifth largest clean energy operator in France, as well as one of the largest Chinese energy companies in terms of overseas installed capacity.
CGN will make full use of its experience accumulated in the nuclear power, new energy, and environmental protection industries over the past 30 years and actively participate in the clean energy development and environmental protection in countries along the Belt & Road Initiative, with the goal of building a community with a shared future for humanity, said He.
Its clean energy projects in Malaysia, Egypt, and Bangladesh provide nearly 1,200 jobs for these countries. Additionally, it provides financial support and donations to improve education and medical treatment in impoverished communities, help the underprivileged start businesses, as well as support cultural and sport undertakings.
In Malaysia, CGN has set up scholarships at Tenaga National University and several public universities to support excellent students from low-income families. A total of 120 students received the scholarship and obtained job opportunities by the end of 2018. It has also teamed up with Women of Will to assist women in obtaining the necessary skills to start up a business.
In May, CGN’s first overseas training institute was established in Malaysia, with more to be built in countries and regions such as Europe, South Korea, and Brazil. The Brazilian training center will cultivate clean energy talents and contribute to the clean energy development in South America.