Yesterday, we reported our second quarter results and provided an update on our development projects in Du Mon County. While our financial results for the quarter were impacted by a major maintenance completed during the month of August, our results for the year-to-date are well ahead of the same time a year ago.
It is important to point out that only our Phase 1 wind farm is currently generating revenue. With an installed capacity of 49 MW, Phase I is just a fraction of the total 800 MW development we have planned for Du Mon County. We thought it would be helpful to provide an update on all of our development phases to help provide more visibility to our growth plans and future results. The chart below provides a summary of each of our development phases, and the commentary below the chart explains the current status of each development phase in more detail.
Phase 1 generated approximately 14.5 million KWh of electricity for the three months ended September 30, 2011, and 11.2 million KWh in the month of October, for an aggregate production to date of 187 million KWh.
We expect Phase 2 to be substantially completed by the end of this calendar year. Upon completion, Phase 2 is expected to run at approximately 60% production capacity for the first year of operations due to tuning and calibration, and is expected to reach optimal production capacity starting from the second year of operations.
Our 198 MW Phase 3 wind project started construction in September 2011. It is being constructed under an engineering, procurement and construction contract with China Ming Yang Wind Power Group Limited (NYSE: MY) (“Ming Yang”), a world-leading turbine manufacturer in China. As we had previously disclosed, no payments for construction, turbines and installation are due until one year after completion. Phase 3’s construction is expected to be completed by the end of the second quarter of calendar 2012. By then, we expect to have approximately 300MW of wind farms in operation.
We have submitted approximately 300 MW of wind farm projects (“Phase 4”) for government approval in calendar year 2011, which are planned to be built commencing in 2012 and expected to be completed by mid-year 2013.
In addition, we are conducting a feasibility study on for Phase 5. Our plans for Phase 5 are to build approximately 200 MW of wind farms commencing in 2013, with an expected completion by mid-year 2014.
The above represents our current plans to build out approximately 800 MW over five development phases. However, our long-term potential for wind power in the area is greater, representing approximately 1,150 MW.
Disclaimer: This blog post contains forward-looking statements. Please read our full disclaimer regarding forward-looking statements on our website.
