China Energy Investment and Electricite de France Group (EDF Group) have signed a deal to jointly develop an offshore wind power project in China’s eastern Jiangsu province, People’s Daily reported.

The project is the first offshore wind power venture with both domestic and foreign investment in China. A total of 7.94 billion yuan (US$1.18 billion) will be invested, with EDF holding a 35 percent stake, it said.

The project in Jiangsu Dongtai city will have an installed capacity of 500,000 kilowatts. The first phase of the project, with a capacity of 300,000 kilowatts, has been under construction and will be connected to the grid by the end of this year. The second phase of a capacity of 200,000 kilowatts will start construction soon and be put into operation by 2020.

EDF and China Energy Investment will team up for the investment, construction and operation of the project.

China is a hot market and holds huge potential for wind power, it said. In 2018, China added about 1.8 million kilowatts of offshore wind power capacity and market estimates indicate China will have the world’s largest offshore wind power market by 2030.

Industry insiders say the joint venture of China Energy Investment and EDF offers a prime example of China’s openness toward foreign investment in the wind power industry.