The company’s AES Wind Generation unit, formed in 2004, operates more than 1,300 megawatts of generation capacity in the US, Europe and China and has 525MW under development. It also develops, finances and manages wind projects.

The proposed transactions are the latest signs of China’s determination to become a major player in the global wind power market.

In September, AES brought the 49.5MW Huanghua I wind farm in China on line. Located in Hebei Province, a second phase is expected to reach commercial operation in 2010, boosting total output to 98MW.

Separately, AES entered into a binding stock purchase agreement with a wholly-owned investment subsidiary of CIC to raise $1.58bn of new equity to fund growth opportunities and extend its global presence in the power sector.

AES, based in Arlington, Virginia, will sell 125.5 million shares of stock for $12.60 a share, giving CIC a 15% stake in the company. AES had $16bn in 2008 sales and also operates 32MW of solar power.

CIC is a long-term institutional investor operated on a commercial basis. Following the closing, CIC will nominate a director to join the AES board, which currently has ten members.

“Having CIC as a partner will enhance our financial flexibility, provide capital needed to move more quickly on our project development pipeline, and offer broader access to high quality investment opportunities,” says Paul Hanrahan, chief executive of AES.

“We see tremendous potential for growth in meeting demand for affordable and sustainable power throughout the world,” he adds..

The proposed deals are subject to completion of regulatory reviews and receipt of applicable approvals, including the Committee on Foreign Investment in the United States (CFIUS) and the antitrust review under Hart-Scott-Rodino Act.

Approvals are expected to be completed during the first half of 2010, according to AES.

AES owns and operates a diverse portfolio of power generation and distribution businesses in 29 countries. More than two-thirds of AES’ revenue is generated outside of the US.

AES seeks to invest in high-growth areas of the power sector, including renewable energy and emerging markets.