(Yicai Global) Dec. 21 -- The renewable energy subsidiary of Chinese hydropower giant China Three Gorges plans to invest CNY41.2 billion (USD6.5 billion) to build three ultra-large, deep-water off-shore wind farms that will increase the firm’s current capacity by two and a half times.

The three plants, each with a power generation capacity of one gigawatt, are the first ultra-large, offshore, deep-water projects by China Three Gorges Renewables Group, the firm said yesterday. They will be built at a depth of between 37 meters and 54 meters below the sea bed and at a distance of up to 85 kilometers from the coast of Yangjiang in southern Guangdong province.

Unit Yangjiang Power Generation will be responsible for the three projects, Three Gorges Renewables said. One farm will be ready by June 2024 and the other two by the end of 2024. Once complete, Three Gorges Renewables will be the world’s largest offshore wind power producer, with a total installed capacity of five GWs.

The said investment does not include the cost of transmitting the power, which will be borne by sister company Yangtze Three Gorges Investment Management, Three Gorges Renewables said. Once up and running, Three Gorges Renewables will pay Three Gorges Investment a power grid fee at an agreed rate.

The Chinese government started offering subsidies on wind power tariffs earlier this year. But even without the subsidies, these projects will be profitable, Three Gorges Renewables said. This is due to the much lower costs of wind turbines and the cost advantage of large-scale development.

Three Gorges Renewables’ share price [SHA:600905] closed up 1.12 percent today at CNY7.23 (USD1.13) today.

Editor: Kim Taylor