The Bank of China has approved a USD 440 million loan to the China Hydroelectric Corporation (CHC). The company is planning to acquire small hydroelectric projects.

Given the fact that some Chinese sectors lack debt financing, and the recently announced limitaton of access to debt financing, CHC has everything to cheer about.

Even though there was no mention of further plans for CHC involving small hydro, we can guess the acquisition plans will result in existing small hydropower potential refurbishment and the development of new locations. Small hydro is an ideal source of energy supply in remote areas, where there is significant hydroenergy potential (small river, etc), because it gives a fairly steady supply to the local communities, many of which are still not connecte to the national power grid.

[source: press release]