(Yicai Global) Sept. 14 -- Guidong Electric Power's stock price rose by the daily limit after the Chinese hydropower firm said it will spend CNY11 billion (USD1.7 billion) on new green energy projects.

Guidong's share price [SHA: 600310] surged 10 percent to CNY5.16 (80 US dollar cents). The stock price is more than 15 percent up this year.

The power generation firm intends to develop a series of wind and solar power, as well as energy storage projects in its hometown, the Hezhou-based company said in a statement yesterday.

The expansion should improve Guidong's asset structure and profitability, it said, without disclosing details about the origins of the funds.

More than a third of the investment will target wind power. Guidong will invest CNY2 billion (USD310.2 million) to build two wind farms with a total annual capacity of more than 300 megawatts. A similar sum will be earmarked to build projects with a capacity of more than 500 MW in different places such as abandoned mining areas and agricultural production bases.

Moreover, the firm plans to invest CNY6.5 billion to construct a pumped hydroelectric energy storage with a designed capacity of about 1,200 MW. Finally, some CNY500 million (USD77.6 million) will be poured into upgrading the technology used in the company's existing thermoelectric projects.

The big investment plan should significantly increase Guidong's output. Currently, the firm can generate 857.6 MW of hydroelectric energy, 700 MW of thermal power, and 20 MW of solar energy each year, according to its website.

Editor: Emmi Laine, Xiao Yi