The Tokyo Electric Power Company, Inc. (TEPCO) has signed an agreement with 
Gansu Mingzhu Hydropower Development Co., Ltd. *1 today for the purchase of 
carbon credits to be generated during the period between November 2007 (scheduled) 
and December 2012 from a hydropower CDM project in Yongdeng County, Lanzhou City, 
Gansu Province *2. 

This project, implemented by the Gansu Mingzhu Hydropower Development Co., Ltd., 
will construct a run-of-river hydropower plant with a design capacity of 51,500 kW 
(one 8,000 kW and three 14,500 kW generators) and the generated electricity by 
this project will be sold to Gansu Power Company *3. With this project, a part of 
the local power demand will be met by renewable energy, which, in turn, will 
mitigate the consumption of fossil fuels. TEPCO, plans to purchase carbon credits 
worth about 920,000 tons of the CO2 emission reductions as CERs generated during 
the period between November 2007 (scheduled) and December 2012 (see Appendix for details). 

The Government of the People’s Republic of China has approved this project as CDM 
activities. TEPCO will take the necessary steps required for the generation of CERs, 
after approval by the Japanese government of this as a CDM project is granted. 

TEPCO’s management has addressed measures to cope with global warming as one of 
its top priority tasks. TEPCO continues to launch committed efforts to cope with 
global warming 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.

*1: Gansu Mingzhu Hydropower Development Co., Ltd.
Corporate Name: Gansu Mingzhu Hydropower Development Co., Ltd.
Corporate Location: Lanzhou City, Gansu Province, China
President: Cai Zhonghe
Establishment: 2006
Capital: 350 million RMB
Business Field: Hydropower generation, etc.

*2: CDM: Clean Development Mechanism
A system under which developed nations and economies in transition participate 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 (Emissions 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.

*3: Gansu Power Company is an electric power company that engages in the transmission 
and distribution of electricity in Gansu Province.

Appendices
Overview of the Hydropower CDM Project in China
Case examples of CDM project in China