China Three Gorges Corp has the edge to by 21 pct of Portugal’s EDP – Energias de Portugal

7 December 2011

Lisbon, Portugal, 7 Dec – The leadership of Chinese power company China Three Gorges Corporation in renewable energy in China and its international expansion project are the trump cards the company has to acquire the Portuguese State’s stake in power company EDP – Energias de Portugal, a spokesman for the group said in Lisbon.

The Chinese group plans this week to hand over its proposal to buy the 21 percent stake owned by the Portuguese state in EDP, similarly to its competitors in the race Germany’s E.On and Brazilian companies Cemig and Eletrobras.

Qin Guobin, who declined to give details of the proposal due to a confidentiality agreement signed with the State, said however that the Chinese company’s interest in EDP, “is part of China Three Gorges strategy for Europe,” where opportunities in renewable energy have increased since several countries decided to step back from their plans to build nuclear power plants.

“The step back in the use of nuclear energy is not only an opportunity for China Three Gorges but for all operators involved in renewable energy,” noted Qin Guobin speaking to Portuguese news agency Lusa.

The CTG spokesman said that, of all the competitors, the Chinese group, “is less well-known because China does not have great visibility in Portugal,” but that this did not prevent the company from making a good proposal.

For China Three Gorges, regulatory changes in the sector, such as the end of regulated tariffs and change to the subsidisation of renewable energy are not a problem as the “trend towards liberalisation is a fact for Portugal and the whole of Europe,” adding that, “it is not a negative argument,” for privatisation “per se.” (macauhub)