22 Apr 2012
Everbright International to Benefit from NDRC's Upward Adjustment to the Waste-to-energy Power Tariff
National Policies to Favour the Development of the Group's Environmental Protection BusinessChina Everbright International Limited ("Everbright International" or the "Group") stated that it will benefit from the policy recently launched by the National Development and Reform Commission ("NDRC") of the PRC for raising waste-to-energy power tariff. This policy is expected to boost the revenue stream from a new growth driver for the Group.
On 28 March, the NDRC issued a "Notice in Relation to the Optimisation of Waste-to-energy Power Tariff Policy", which sets the power tariff benchmark of all waste-to-energy projects across the country at RMB0.65/kWh, effective from 1 April, 2012. The notice may facilitate the optimisation of the waste-to-energy power tariff policy and the healthy development of the industry while foster resources saving and environmental protection.
The Group has currently secured 15 waste-to-energy projects, mainly in Jiangsu, Shandong and Guangdong Provinces, with a total designed daily processing capacity of approximately 14,600 tonnes. The total investment of the projects is RMB7.308 billion. The adjustment of the power tariff of the waste-to-energy projects is expected to benefit the Group's related business. Currently, the average on-grid power tariff of the project in Shandong is less than RMB0.6/kWh, while that of the 13 projects in Jiangsu ranges from RMB0.6 to RMB0.65/kWh. Unifying the power tariff at RMB0.65/kWh will result in a considerable increase of earnings to the Group.
Mr Chen Xiaoping, Chief Executive Officer of Everbright International, said, "Waste-to-energy projects have always been our leading business. The favourable national policy to raise the power tariff will generate added impetus to our continuous development of waste-to-energy business. Everbright International will seize the opportunities provided by the support from the Central Government to the environmental protection industry by continuing to build and operate each of our projects according to the highest standards. In this way we can consolidate our leading presence in the PRC's environmental protection industry while making greater contributions to energy conservation and emissions reduction in China."