A-Power Energy Generation Systems Ltd., the largest provider of distributed power generation systems in China, announced today a $90.5 million contract to develop a 49.5 Megawatt wind farm in the township of Saiwusu, Guba County in Inner Mongolia. The project, the Saiwusu Wind Farm, is for the Jihe Orient Wind Energy Company Ltd., and calls for A-Power to supply the wind turbines, towers, and foundations, as well as oversee all construction, subcontracting, and installation.

Equipment procurement alone is expected to be $84.2 million, with construction and installation another $4.8 million, and miscellaneous costs adding $1.5 million. The project is due to begin in early October, with completion planned for June of 2010.

Inner Mongolia is actually a Chinese province in northern China, on China’s border with the Mongolian People’s Republic. It’s basically an inland plateau, consisting largely of vast flat prairie grasslands, conducive to wind power generation.

Mr. Jinxiang Lu, Chairman and CEO of A-Power, commented on the project. “We are truly excited to embark on our first wind farm full-responsibility project. Inner Mongolia as we all know has the most promising wind energy potential among all of China’s provinces. Among the 787GW estimated exploitable wind power, only 1.6GW in capacity had been developed and installed as of September 2008, according to the Chinese Renewable Energy Industry Association. A-Power is very proud to set its foot in a region with such vast resources. We look forward to leveraging our superior wind turbine technologies, our engineering and construction expertise and our excellent relations with local governments, and making headways as a participant in the robust growth of the wind power market of China.”

A-Power has a lot of experience with the wind power industry in China, and built the country’s biggest wind turbine manufacturing facility, located in Shenyang, Liaoning Province. The operation has a total annual production capacity of 1,125 Megawatts. Earlier this year, A-Power entered into an agreement to establish a joint-venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. The company also has strategic relationships with Tsinghua University in Beijing, as well as the China Academy of Sciences in Guangzhou, to develop and commercialize other renewable energy resources.