Europe’s second largest utility Enel Group has signed a memorandum of understanding with the State Grid Corporation of China (SGCC), to collaborate on renewable energy and smart grid projects.
Enel’s CEO Fulvio Conti signed the MoU earlier this week with Liu Zhenya, chairman of SGCC, the world’s largest state-owned utility company.
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The MOU will cooperation and an exchange of information on renewable energy and Enel helping SGCC work towards China’s sustainable development.
A spokesman for Enel confirmed to PV Tech: “Enel and SGCC are discussing during the next three months about the setting up of a joint venture to help cut pollution in China and tackle Asian emerging markets.”
Conti said Enel hopes the new co-operation agreement would “create value and opportunities for everyone involved”.
Enel also has a ‘cooperation framework agreement’ with another Chinese state-owned utility, Huaneng Group – the agreement is for joint technology development, power sector investment and academic exchanges, and is to be finalised by summer this year.
The Huaneng agreement is in support of new government policies in China to develop industry in nuclear, solar, wind and biomass technologies, as well as promoting electric vehicles, energy efficiency and environmental protection technologies, as the China’s electricity demand is expected to climb to 31% of global demand, according to the International Energy Agency.
Last month, Enel released its 2014-2018 business plan, including a pathway to increase its renewable energy capacity from 8.9GW in 2013 to 13.4GW by 2018.