Hydro Resources Development Strategy

Based on an in-depth analysis of the nation’s power grids development and West-to-East power transmission strategy, the common rule for growth of independent power producers, and Sichuan’s economic development trends as well as the need to boost the economy in minority areas, a Four-stage Strategy was formulated for development of the hydropower resources of the Yalong River, which is:

Stage 1: Before 2000, achieve an installed capacity of 3,300 MW by building Ertan Hydropower Station to establish a foundation for basin development.

Stage 2: Before 2015, build Jinping-I, Jinping-II, Guandi and Tongzilin projects to fully complete cascades development of the lower reach. The company owns an installed capacity of 14.70 GW, starting to benefit from asset scale and mutual compensation, with an initial setup shaped for modern management of cascade power stations. The company becomes a significant independent power producer in the regional power market.

Stage 3: Before 2025 or so, further develop the hydro resources by constructing 4 to 5 major projects, including Lianghekou, in the middle reach of the river. By then the company will increase its generation capacity by another 8,000 MW up to 23 GW, and will step into the line of the world’s first class power producers.

Stage 4: Finish the remaining projects to complete the full basin development, raising the company’s generation capacity to approx. 30 GW.

Diversified Development Strategy

Based on the primary business of building and operating the cascade power stations, Yalong Hydro actively explores and expands its business scopes to cover new energies including wind power and photovoltaic power, and other areas like ecological agriculture, modern services, high-efficiency energy storage, and electric power conversion. While keeping itself focused on basin development, it will begin acquisition and financial business at appropriate time, and start international business. Priority will to be given to push ahead construction of a demonstrative base of clean energy with complementary hydro, wind and solar power to make it a State-level clean energy base.