Wind Farm Development in Shandong Province, China

A-Power Energy Generation Systems, a leading provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines, today announced the Company has won a “full-responsibility” contract to develop a 19.5 megawatt wind farm in the Donggang, Rizhao City of Shandong Province, the Rizhao Donggang Wind Farm, in Eastern China, for the Shandong subsidiary of Datang International Power Generation Co., Ltd. The total value of the contract is $36.2 million.

A-Power is to supply the wind turbines, the towers, and the foundations, and oversee the construction, subcontracting, and installation for this project. The estimated cost breakdown is as follows: equipment procurement $33.7 million; construction and installation $1.9 million; miscellaneous $586,000. The project is due to commence November this year and the estimated completion time is November 2010.

The Rizhao Donggang Wind Farm project, owned by Rizhao City Hengyuan Wind Power Co., Ltd., has an initial requirement of eight units of the 2.5/2.7 MW wind turbines, and it is expandable to 100 MW. The project has been approved by the provincial Development and Reform Commission and the National Resources Bureau of Shandong Province and the permit for transmission to the electricity power grid has been issued by the Shandong Electricity Co.

“We are proud to announce our second wind farm full-responsibility project, after our Inner Mongolia project announcement in September,” said Mr. Jinxiang Lu, Chairman and CEO of A-Power. “To be able to work with Datang Power, which is China’s second largest state-owned power producer, speaks volume about our growing expertise in wind farm equipment supply, construction and engineering. We have already assembled teams for construction, installation and testing for the Rizhao Donggang project and will start on it early next month.”

A-Power Energy Generation Systems Ltd., through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25 MW to 400 MW. In 2008, A-Power entered the wind energy market and has built China’s largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German FuhrläNder AG and Denmark-based Norwin, and a total annual production capacity of 1,125 MW. In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies.

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