URUMQI - Northwest China's Xinjiang Uygur autonomous region plans to spend 20 billion yuan ($3.04 billion) this year to boost its wind power industry, including the establishment of the region's largest production base for wind-power turbines in Hami.

The investment will bring about 20 new wind power projects, or an additional 1.65 million kilowatts of power generation capacity, to Hami Prefecture, Hami's local development and reform commission said in a statement Thursday.

A wind power farm in Turpan, in Northwest China's Xinjiang Uygur autonomous region, June 2, 2010. [Photo/Asianewsphoto]

The potential wind power in Hami is estimated at 75 million kW, accounting for approximately 63 percent of Xinjiang's total. Its resources have drawn a number of Chinese companies.

Xinjiang Goldwind Science and Technology Co Ltd, China's second-largest wind turbine producer, has set up a wholly-owned subsidiary in Hami.

The subsidiary has launched a 200-million-yuan production line that will supply 300 sets of 2.5-megawatt wind turbine generators a year.

The output will increase to 800 sets a year after it starts formal operation.

"... the operation system is mature and the turbine production base will meet the demands for wind power generation in Hami," said the company's project manager Du Wei.

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At least seven other companies plan to launch production lines in Hami for wind-power turbines, the statement said.

The wind power boom is a result of the Chinese government's efforts to use more clean energy and reduce over-reliance on electricity generated by polluting coal.

By 2015, China will build a 10.8-million-kW wind power farm in Hami. China also plans to build another six 10-million-kW wind-power farms by 2020.

The seven bases, including Hami, will have a combined capacity of 90 million kW by 2020, accounting for 60 percent of the country's total.