China Datang Corp. has won the right from the Shanghai government to build China’s first offshore wind farm.

Datang led a consortium made up of China Guangdong Nuclear Power Holding Co, China Power International Holding Ltd and a local energy engineering company in outbidding over 10 bidders which included China National Offshore Oil Corp and China Three Gorges Project Corp.

The project will be located near Donghai Bridge, in the southeast of Shanghai. It is scheduled to be completed before 2010, and will have a capacity of 100 megawatts, enough to power 200,000 households in Shanghai.

The project is estimated to cost more than RMB 2 billion.

China is stepping up efforts to reduce dependence on coal for its booming economy and is focusing on renewable energy. The nation announced plans last month to build the world’s largest solar power station in Gansu province.