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China's Electricity Council announced Friday that wind-generated power in China grew at a record rate last year, beating the 73% expansion from 2005 to 2006. This is one of the hottest sectors in alternative energy today, as evidenced by the proliferation of OTCBB companies scrambling to grab a piece of the pie. I want to add at least one of the following companies to the C.O.P. Index:

1) China Wind Energy (OTC:CWEY): CWEY is an emerging company currently offering consulting and management services to wind energy operators in China. Its sole client is Lian Chuang in Harbin (in northern China), where it is helping with R&D, production and sales of wind turbine blade products. This contract with Lian Chuang will end in 2010.

2) China Wind Systems (CWSI.OB): CWSI is positioning itself to be a significant manufacturer of forged rolled rings and other components for the wind industry in China. For FY2007, the company anticipates revenues of $23 million and recurring net income of $3.6 million. For FY2008, the company is projecting revenues of $40 million and net income of approx. $7 million.

3) Welwind Energy [WWEI.OB]: WWEI is positioning to be a wind farm operator in China. Its first two projects are located in Yangxi and Zhanjiang in Guangdong Province, where it is currently doing feasibility studies. The company recently completed a $0.5 million financing to fund these projects, and already has a commitment from Guangdong Power to be connected to its grid.

China currently ranks fifth in the world in terms of wind power installed capacity (with 6.1 million KW), still far behind Germany, which is the top wind power producer with a total installed capacity of 20.6 million KW. However, China plans to increase its capacity to 10 million KW by 2015, and 30 million KW by 2020.

With energy consumption spiking, the Electricity Council has been instituting measures to support the growth of wind-generated power. These have included conducting survey of wind resources, organizing biddings for franchise of large wind power projects, and promoting localization of domestically produced wind power equipment. So far, these policies appear to be paying off.

My Position: None.

Source: 2 Wind-Generated Power Companies to Consider