Atlanta-based Southern Electric International, Inc. (SEI) might reconsider its development plans for China should Beijing’s central government adopt proposed caps on return on investment for power generation facilities, Globalfax has learned.

“China is the world’s most promising power market,” said SEI spokesman David Mould.  “They have a great need.  They could build added capacity to generate 15,000 megawatts per year for the next few years and that might not be enough.”

SEI, the international power generation subsidiary of the Southern Company, has been negotiating with several provincial governments to develop power plants in southern China.

If the central government does decide to cap return on investment, Mr. Mould said SEI as well as other utilities would probably reconsider their China strategies.  “We certainly hope they don’t do that, especially in light of their overwhelming need for electricity.  It could be a factor in discouraging investment in China.”

Should SEI seek other markets, it might follow the lead of Hong Kong financier Gordon S. Wu, who reportedly has canceled a $2 billion power plant project in China for a project in Indonesia.  India would be another possibility, said Mr. Mould, adding that China is such a huge potential market, most companies will think twice about abandoning their efforts there.

With industrial centers in the southern coastal regions currently suffering from occasional brownouts, provincial governments have been seeking to add electrical generating capacity.  Future economic development of the area depends on the region developing additional power capacity, Mr. Mould said.  “I think that it is more than obvious that industrial development depends on electricity,” he added.

A Spanish delegation from Salamanca will be in Atlanta Monday, Sept. 19 to promote the city as a tourist destination and to meet with local food distributors and brokers.

For more information, call Maria Balais of Zamarripa Consulting Group at (404) 614-0400; fax, (404) 614-0410.