Jan. 31, 2012 (China Knowledge) - Guangdong Electric Power Development Co<000539><200539> said yesterday that it will spend RMB 90 million to acquire a 10% stake in an onshore wind power project in Zhuhai, Guangdong Province.

The project will be developed by a consortium led by China Southern Power Grid, the country's second-biggest power transmission company, said a person familiar with the matter, adding that the joint operator will have a registered capital of RMB 900 million.

The onshore wind power facility, which is expected to cost RMB 4.45 billion with a designed installed capacity of 198 megawatts, will start construction in 2012 and go into operation in 2014.

Shenzhen-listed Guangdong Electric Power Development also estimated that its net profit attributable to shareholders for 2011 might have reached between RMB 306 million and RMB 459 million from RMB 766 million in 2010, representing a plunge of 40% to 60%.  

The company attributed the sharp decline principally due to increased coal prices, which caused low profit margin in several thermal power plants.