Beijing, February 27, 2012 – State Grid Corp. of China is reportedly in talks with U.S. power firm AES Corp. about taking a controlling stake in its U.S. wind power business, three sources said, as China’s state-owned power companies go on an overseas buying spree.
It is unclear how much State Grid would pay for the assets or how the business would be structured after the sale. According to reports, the assets could be worth around $1.65 billion.
The deal involves wind power assets with capacity of around 1,100 MW and would give State Grid about an 80 percent stake in AES’s U.S. wind power business, according to reports.
Specific details of the deal were still under development and not shared with the media. Any deal would need both Chinese and U.S. regulatory approval.
AES Wind Generation, a unit of AES Corp, operates more than 1,800 MW of wind power generation capacity in the U.S., China and Europe. Of that, nearly 1,346 MW is in the U.S. The company has wind power assets in Texas, California, Oregon, Minnesota, Iowa, West Virginia and Pennsylvania.