China accelerates modernization of aging hydropower stations with policy support, funding

Chinese authorities have issued a series of policies to support the modernization and reconstruction of aging hydropower stations. These measures aim to reduce reconstruction costs, boost market vitality, and help the hydropower sector’s development of greener, more efficient, and more intelligent operations.

In Yunnan Province, in southwest China, many aging hydropower stations have introduced advanced core equipment, including water turbines, electric generators, and smart automation technologies. These upgrades have significantly improved power generation efficiency and operational capacity. The local government has also announced tax relief policies, including reductions in value-added tax and income tax, encouraging further upgrades and reconstruction projects.

"These policies provide practical support for equipment upgrades and reconstruction. They are systematic, easy to implement, and drive the entire project forward," said Gong Tianxiao, Deputy Director of the Institute of Information and Industrialization Integration at the China Academy of Information and Communications Technology (CAICT).

To further advance these efforts, the central government will allocate 8 billion yuan (about 1.1 billion U.S. dollars) to support the transformation of aging hydropower stations into high-efficiency facilities with expanded storage capacity. Local governments and private sector investors will also contribute around 14 billion yuan (about 1.9 billion U.S. dollars) to accelerate the transformation.

For projects that meet the upgrade and reconstruction requirements, the central government will provide direct subsidies to further reduce costs for enterprises.

China accelerates modernization of aging hydropower stations with policy support, funding

Indonesia issued offshore bonds denominated in Chinese yuan, or dim sum bonds, totaling 9.25 billion yuan (about 1.34 billion U.S. dollars) in February, marking its second issuance of the yuan-denominated bonds.

The country issued the RMB bonds for the first time last October, with a total value of 6 billion yuan (about 870 million U.S. dollars).

The bonds were issued with maturities of three, five and 10 years.

Analysts point out that the competitive yield of RMB bonds will help Indonesia further optimize its financing structure and reduce capital costs against the backdrop of high global interest rates and rising financing costs in U.S. dollars.

"At the current situation, the global economies start to change and the financial sector is already evolving, also, and the RMB now is in the internationalization phase. So we see this is an opportunity for the Indonesian government to diversify and further lower the cost of funding," said Fakhrul Fulvian, chief economist and head of fixed income research with Trimegah Sekuritas, a company engaged in the brokerage and underwriting of securities.

"That demonstrates the depth, liquidity and attractiveness of Hong Kong's dim sum bond market, even for tenure as long as 10 years," said Handojo Wibawanto Soetikno, marketing director of Jakarta Branch of the Bank of China.

Dim sum bonds are RMB-denominated bonds issued outside the Chinese mainland, mainly in Hong Kong.

Indonesia issues RMB-denominated bonds of 9.25 billion yuan