A consortium led by financial group Morgan Stanley has invested US$150 million into China's Zhaoheng Hydropower Holdings Ltd., HydroWorld.com has learned.

The consortium -- which consists of the Morgan Stanley Infrastructure Fund, FountainVest Partners Co. and Olympus Capital Holdings Asia -- doubles a previous investment in Zhaoheng made in 2010.

Morgan Stanley says this investment -- combined with its 2010 investment -- now represents the largest private investment in China's renewable energy and hydroelectric sector with a value of about $300 million.

Zhaoheng says it will use the investment to buy hydropower plants and increase its total generating capacity to exceed 1 GW over the next two years. The company currently operates more than 30 hydroelectric plants in seven provinces, which combine for a total installed capacity of about 650 MW.

The company acquired its first hydropower plant in 2003. Zhaoheng operates mainly in Hunan Province.