(Yicai Global) Nov. 23 -- Gepic Energy Development’s shares climbed after the Chinese power producer said it plans to invest CNY2.4 billion (USD376 million) to build two solar power plants in China’s northwestern Gansu province.

After earlier gaining as much as 9.8 percent, Gepic Energy’s stock price [SHE: 000791] closed up 3.2 percent at CNY5.77 (90 US cents) today.

Gepic will invest nearly CNY1.5 billion to build a 300 megawatt plant in Yongchang county and CNY980 million (USD153.5 million) on a 200 MW plant in Guazhou country, both to be completed in eight months, the Lanzhou-based company said late yesterday. Preliminaries such as government paperwork have been completed, but other procedures including land acquisition have yet to be finalized, it said.

The after-tax payback period of the Yongchang project is 12.07 years, based on a CNY0.3028 per kilowatt-hours (4.743 US cents/kWh) on-grid tariff, while the pre-tax payback period of the Guazhou project is 11.35 years, based on an on-grid tariff of CNY0.2878/kWh. Gepic did not explain why the on-grid tariffs of the projects are different.

Founded in 1997, Gepic is a renewable energy investment and development company focused mainly on hydropower projects. Its power generation and related revenue fell in the first three quarters from a year ago as the river basin where its hydropower plant sits is drying up, according to its earnings report. Net profit fell 36 percent on a 13 percent drop in revenue.

Gepic has installed capacity of hydro, wind, and solar power of 1.7 million kW, 818,100 kW, and 136,000 kW, respectively, according to its website.

As Gansu is rich in solar and wind resources, Gepic announced in late October that it would spend CNY1.2 billion to build a 200 MW wind power generation project and CNY223 million for a 50 MW solar power project in the province.

Editor: Futura Costaglione