(Yicai Global) Jan. 19 -- Shares in Yunnan Energy Investment surged as much as the exchange-imposed daily limit of 10 percent today after the Chinese operator of natural gas, hydropower and other energy projects said it will invest CNY7.1 billion (USD1.1 billion) to build two large wind farms in high-altitude regions of southwestern Yunnan province.

Yunnan Energy’s share price [SHE: 002053] closed up 5.94 percent at CNY9.45 (USD1.50). Earlier in the day it had hit CNY9.81.

Yunnan Energy will spend CNY4.7 billion (USD740 million) to construct a 750 megawatt wind farm in Luxi county and CNY2.4 billion to build a 350 MW wind farm in Huize county, the Kunming-based company said yesterday.

The power plant in Luxi will generate 1.86 billion kilowatt hours of on-grid electricity a year and will take 18 months to complete, it said. The Huize facility will have an annual output of 883 million kWh and should be finished in 19 months.

The two large wind power projects will reduce carbon dioxide emissions in the region and help solve a local power shortage, it added. They are expected to become demonstration projects of wind power generation in high-altitude areas.

A fifth of the construction funds will come from company funds and the rest will be raised through debt financing, it added.

Editor: Kim Taylor