(Yicai Global) Oct. 11 -- Shares of Shenergy, which mainly focuses on energy supply services in east China, rose more than 5 percent today after regulators approved the company’s plan for a large offshore wind power project in southern island province of Hainan.

With an overall installed capacity of 1.2 gigawatts, Shenergy will invest a total of CNY15 billion (USD2.1 billion) on the project.

Shenergy [SHA: 600642] shares closed up 5.41 percent at CNY6.04 (84.11 US cents) today, with the Shanghai Composite Index staying flat.

The company’s plan to build an offshore wind power project in the northwest coastal city of Danzhou has been approved by Hainan’s provincial development and reform commission, Shenergy noted in its statement last night.

A wholly-owned subsidiary set up by the company locally will be in charge of the project’s investment and construction, it added.

The statement did not reveal more details, only saying that apart from the project company’s CNY3-billion (USD417.8 million) capital, the rest of the investment will be from bank loans.

According to local media, the project plans to install offshore wind turbines with power generating capacities of more than 8 megawatts each, and will also support the construction of two offshore booster substations and an onshore control center. It is scheduled to start construction at the end of this year.

Along with Shenergy’s project, the local regulatory body also approved another 1.2GW offshore wind power project in Danzhou, which will be invested and built by rival power supply titan China Datang Corp., according to local media reports.

Based in Shanghai, Shenergy is an energy service provider mainly serving customers in east China and focusing on power supply.

The company’s annual earnings report for last year showed that within the reporting period, its coal-fired power’s installed capacity totaled 7,050MW, accounting for 50.63 percent of the company’s overall installed capacity for various types of generator sets. And that of its wind-power devices tallied 2,088MW, taking up 14.99 percent of the total.

Shenergy’s offshore wind power projects in eastern Jiangsu province generated only 64.28 million Kwh of electricity last year, with the rest of its wind power projects in inland provinces.

Editor: Peter Thomas