AES to sell stakes in coal-fired power plant, wind projects for $134mn

AES Corp. (NYSE: AES) will sell 2,727 MW of coal-fired capacity in China for $134 million because it is unable to pass on higher coal costs to customers, according to Reuters. The deal is expected to close in the second half of 2012.

Sembcorp Utilities, a subsidiary of Sembcorp Industries, will acquire some of the assets for $85.5 million. The deal includes a 49 percent stake in four wind power assets with a total generating capacity of 247.5 MW owned through AES Huanghua, AES Hulunbeier Wind Power Co., AES Xinba’erhu Wind Power Co. and AES Chenba’erhu Wind Power Co., also known as the China Wind joint venture, as well as a 25 percent stake in the 2,100 MW Yangcheng coal-fired power plant owned through AES China Corp. The remaining 51 percent stake in the wind projects are owned through joint venture partner Guohua Energy Investment Co.

AES also plans to sell its 49 percent interest in Jianghe Rural Electrification Development Co. Ltd. to its joint venture partner China Three Gorges New Energy Corp. for $48 million, according to Reuters.

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