Shanghai Electric Power (600021.SH) announced that its holding subsidiary Guodian Investment (Binhai) Power Generation Co., Ltd. (...)
According to the announcement by Shanghai Electric Power (600021.SH), the company's controlling subsidiary, State Power Investment Corporation (Binhai) Power Co., Ltd. (referred to as 'Binhai Project Company'), intends to entrust the investment, construction, and operation of the desulfurization, denitrification, and dust removal systems for the State Power Investment Corporation Binhai 2×1 million kilowatt expansion project (referred to as 'the Project') to Chongqing Yuanda Flue Gas Treatment Franchise Co., Ltd. (referred to as 'Franchise Company'), and plans to sign a flue gas treatment franchise contract and related agreements for the Project. The Project was approved in November 2023 at the 11th meeting of the 8th Board of Directors of Shanghai Electric Power. Currently, the Project has entered the construction phase, with a planned production date in 2026.
In line with the actual situation of the electrical utilities market in Jiangsu Province, Binhai Project Company and the Franchise Company agreed on the settlement model for the eco-friendly service fee based on the actual operating situation of the power plant in that year. The settlement of the flue gas franchise eco-friendly service fee consists of three parts: fixed asset depreciation and financial costs, operation and maintenance costs, and investment return fees, with the eco-friendly service fee during the franchise period expected to be approximately 0.162 billion yuan per year.