Shares of Renewable Energy Asia Group (REA Group) (REAG.SI) rose as much as 4.8% on Tuesday after it said it had received approval to build a 10 megawatt (MW) solar energy farm from Inner Mongolia authorities.
At 11:38 a.m., REA Group shares were up 2.4% at $0.215 on a volume of 560,000 shares.
REA Group will invest around 190 million yuan ($36.8 million) in the solar energy farm. In addition, the firm will develop a 250 MW wind farm and a 25 MW bio-fuel plant in the Green Energy Park in Zhenglanqi, Inner Mongolia.
"The Chinese government is supportive of the renewable energy industry in terms of subsidizing and making sure that their pricing is favourable," said Ng Kian Teck, an investment analyst at SIAS Research.
"But the bulk of the solar energy farm will be outsourced to a specialized party as REA Group is predominantly in the wind energy segment," he added.
China is planning to pump in some 5 trillion yuan between 2011 and 2020 to promote the development of its renewable energy industries, REA Group said in a statement.
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