Second Chinese wind energy giant plots IPO

Just days after reports emerged that China's Huaneng Group is considering a $1bn IPO for its wind energy arm, rival energy firm China Datang Corp appears to be following suit with plans for a $1bn Hong Kong IPO for its own renewable energy division.

News agency Reuters, which also broke the news that Huaneng was preparing to float its wind energy unit, said sources close to Datang had revealed the company has held talks with several banks about underwriting the planned IPO of its wind and hydropower subsidiary, China Datang Corp Renewable Power Co Ltd.

Sources said the company had not yet decided whether to include further assets in the IPO, although one hinted it could raise more cash than Huaneng through the listing, noting that "the scale of Datang's assets is bigger than Huaneng".

According to the China Wind Energy Association, Datang boasted 1,521MW of wind energy capacity at the end of 2008, making it the country's second-largest provider of wind energy.

Analysts told Reuters that further wind energy IPOs could be on the cards in China, highlighting China Huadian Group and Shenhua Group as prime candidates.

Last week new data from the Global Wind Energy Council confirmed China is now the world's fastest-growing wind energy market, accounting for around a third of all new capacity added last year.

The sector is also enjoying high levels of investor confidence compared with the solar sector, which has faced concerns that the sector's rapid expansion could slow as governments begin to scale back incentive schemes.