Tokyo Electric Power Company (TEPCO) and Guangdong Yudean Shibeishan Wind 
Power Development Co., Ltd. [Note 1] , a Chinese wind power generation 
corporation, entered into an agreement today whereby TEPCO will purchase 
all of the carbon credits (CERs) to be generated by the wind power station, 
in the period between July 2007 (when the project is expected to be registered) 
and December 2012, under the wind power generation CDM project [Note 2] in 
Guangdong province. 

Guangdong Yudean Shibeishan Wind Power Development Co., Ltd. constructs 
and operates a wind power plant with a total capacity of 100,200 kW 
(600kW x 167 units) in the coastal region facing the South China Sea of 
Huilai County, Jieyang City of Guangdong Province. The project provides 
the generated power to the "China Southern Power Grid" [Note 3], which 
supplies electricity to the southern region in China.

With this, part of the electricity generated by the China Southern Power 
Grid is replaced by the wind power generation, and the consumption of 
fossil fuels is reduced. Consequently, CO2 emissions are expected to be 
decreased by about 970,000 tons during the period between July 2007 and 
December 2012. TEPCO plans to purchase all of the CO2 emissions reductions 
as CERs. 
The details are described in the sheet attached herewith. 

The Government of the People´s Republic of China has approved this project 
as a CDM project. TEPCO will take the necessary steps required for the 
generation of CERs, including request for the approval by the Japanese 
government of this as a CDM project.

TEPCO´s management has addressed measures to cope with global warming 
as one of its top priority tasks, and TEPCO continues committed efforts 
at home and abroad by implementing various measures to improve the 
efficiency in supplying and using electricity in Japan and acquiring 
carbon credits through active cooperation in overseas projects.

[Note 1] Guangdong Yudean Shibeishan Wind Power Development Company  
         Company name:     Guangdong Yudean Shibeishan Wind Power Development
                           Co., Ltd.
         Company Location: Jieyang City, Guangdong Province, Peoples Republic 
                           of China
         President:        Mr. Li Zhuo Xian 
         Established:      2004
         Capital:          230 million RMB
         Business Lines:   Wind power generation

[Note 2] CDM: Clean Development Mechanism
         A system under which developed nations or those in transition 
         take part in projects in developing countries to reduce greenhouse 
         gas emissions (or increase carbon sequestration), and acquire 
         credits for emission reduction amounts. Along with JI (Joint 
         Implementation) and ET (Emission Trading), this is one of the 
         initiatives of the Kyoto Mechanism. The Kyoto Mechanism is an 
         economic mechanism, which allows for more flexibility in greenhouse 
         gas reductions as set forth in the Kyoto Protocol in 1997.

[Note 3] China Southern Power Grid
         An electric power system, which provides electricity to the 
         southern region in China, covering four provinces, namely 
         Guangdong, Guangxi, Yunnan, and Guizhou.


Appendix
Project outline (PDF 417KB)