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Hototc Featured Company: A-Power Energy Generation Systems Ltd. (APWR) Signs Two New Construction Contracts While Looking to the Future

Many electric power generators and distributors are fighting off those that find coal fired power plants unacceptable. Companies that work with the system, however, are finding favor as they provide for fast growing markets and their own future. Those that play now while looking forward in the power markets will be well prepared for whatever the future may bring.

A-Power Generation Systems Ltd., a Chinese power generation/distributor, is the largest power distributor in China through its Liaoning GaoKe Energy Group Company Ltd. subsidiary. The company is a full service energy company offering energy services in planning, construction and alternative sources of energy production. Currently, the company is ramping for its entry into the Chinese market for wind power and the construction of two power facilities.

Clearly, the company is a dominant provider in the Chinese marketplace for power generation and distribution. It is, however, aware of the status quo with regards to energy generation and not standing still in terms of how it generates and obtains power. Alternative sources of energy, such as wind power, are now beginning to be addressed by the company as future energy generation sources. This future looking strategy is being put in place even as other feedstock type power plants are constructed around the country under a somewhat wary international eye.

The wind power strategy being addressed by the company may well pay off if other pilot projects around the world are used as a template. West Texas (USA), for example, has become a very good project for comparison as cattle ranchers supplement their incomes by leasing land for wind power turbines. All indications point to these types of projects adding significant low cost power to a company’s distribution grid as technology continues to advance in turbine efficiencies.

A-Power, however, does not see this portion of its business as a major component over the shorter term. It has recently announced that it has signed two power generation construction contracts totaling over $60 million. Completion of the contracts is slated for one year so income for the company appears solid near term. If these contracts, and several other positive technical financial dealings, are any indication of the company’s potential the future looks to be charged.

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