More Energy News From China: Plans for 4th Generation Nuclear Power Plant and Investing in the U.S.

Last week brought two major energy-related announcements from China. The country announced plans to build the first "fourth generation" nuclear power plant in two to three years time. Second, a Chinese-based wind turbine manufacturer has gained exclusive rights to supply a huge wind farm in west Texas. No one should pretend that China does not face enormous energy-related challenges, but it is also worth bearing in mind that China is hardly standing still when it comes to these challenges.

The potentially more interesting of the two announcements involved the wind farm in west Texas. The U.S. Renewable Energy Group and Cieclo Wind Power LP have signed a joint venture framework agreement with China's Shenyang Power Group, which will supply 240 2.5 megawatt wind turbines that will be manufactured in China. The 600 megawatt wind farm will spread over 36,000 acres in west Texas. The wind farm is expected to generate enough electricity for 180,000 homes. Shenyang Power is expected to begin shipping turbines in the first quarter of 2010.

It is expected that the $1.5 billion project cost will be financed through commercial banks in China.

The historic agreement marks the first time that Chinese and U.S. firms have agreed to jointly develop a utility-scale wind power project. The agreement, as reported in The Wall Street Journal, is "a sign of how Chinese firms are aggressively capitalizing on America's clean-energy push ("Chinese-Made Turbines to Fill U.S. Wind Farm," Oct. 30, 2009)."

While this is the first announcement of its kind, it seems likely that it will not be the last. The need for clean energy knows no political boundaries. And, it is worth noting, clean energy will be at the top of the agenda when President Obama visits China later this month.