(Yicai Global) March 29 -- China Three Gorges Corp., a large state-backed hydropower firm, will build an offshore wind farm in the Tianjin Economic-Technological Development Area (TEDA) on China's northeastern coast, with a total investment of CNY18 billion (USD2.9 billion).

The completed project is expected to generate 2.4 billion kilowatt-hours of electricity and CNY2 billion in annual operating income.

Three Gorges Corp.'s wholly-owned unit China Three Gorges New Energy Corp. signed a cooperative agreement with TEDA Management Committee, China National Radio reported. CNY5.2 billion of the total of CNY18 billion will go to first-phrase construction, with the plan to cover 20,000 square meters and install 70 wind turbines with individual capacities of 5 megawatts.

The project is expected to get government approval next year and start construction in 2020. All turbines will be in operation by 2022, at which time the wind farm will supply the great demand for electricity of the petrochemical sector in the Development Area and slash coal and gas use.

Offshore wind power has a promising future. The individual capacity of onshore wind turbines is only about 2MW, while offshore ones are 5MW. The company is developing turbines with individual capacities of 8MW and 10MW, said Li Bin, chairman of Three Gorges New Energy.

Three Gorges Corp. formed in 1993. It is the main player in the Three Gorges project on the Yangtze River, which consists of the Three Gorges Dam, Reservoir and Hydropower Station, is world's largest water conservancy and hydropower project, as well as one of the most massive engineering projects in China and anywhere. All three phases were completed in 2009. It is of signal significance in flood control, navigation and hydropower development in the Yangtze River Basin.