The ancient Buddhist Lepchas, who say they are already marginalized by the growing population of ethnic Hindu Nepalis in the region, strongly oppose the project in Dzongu mountain, which they regard as the abode of their guardian god of the mountains.

"Dzongu is a reserved territory of the Lepchas and we will protect the land of our forefathers with the last drop of blood," said Tseten Lepcha of the Affected Citizens of Teesta.

There are plans to construct at least six hydro power projects along the Teesta river in the tiny Himalayan state of Sikkim to generate more than 3,000 MW of power.

SAN FRANCISCO (Reuters) - The growing U.S. wind power industry is drawing increased scrutiny from states and the federal government over the problem of spinning wind turbines killing birds.

The California Energy Commission last week adopted voluntary guidelines to reduce wind energy effects on wildlife, and Washington state, Montana and Texas among other states are reviewing measures.

The U.S. Fish and Wildlife Service, part of the Department of the Interior, also is developing voluntary procedures for wind projects, a spokeswoman said.

Wind power, which is expected to increase by 26 percent in power generating capacity this year, is mostly unregulated in the United States except by county boards, city councils and local planning commissions.

TOKYO - Japan will start next week the first test sales in a city of gasoline mixed with ethanol to meet Kyoto emissions targets, two months behind schedule due to difficulties in finding a petrol supplier outside the nation's major refiners.  Project manager, the Osaka municipal government, said on Friday it would start selling on October 9 gasoline directly blended with up to 3 percent of ethanol (E3) at two pump stations in suburban areas at a price similar to regular gasoline.

FRANKFURT (Reuters) - Germany's E.ON (EONG.DE: Quote, Profile, Research), the world's largest utility, is taking its first step into the U.S. market for renewable energy with the takeover of wind farms there for $1.4 billion including debt.

With the acquisition of the American division of Ireland's Airtricity, E.ON is buying current and future projects with a total capacity of more than 7,000 megawatts in the United States and Canada, the German company said in a statement on Thursday.

"E.ON is late in renewables, but it makes clear it's strongly committed to picking up," London-based UBS analyst Per Lekander said. "Valuations in the area are high and can only be justified by the expectation of future projects."

NEW YORK (Reuters) - Long-range weather forecasts are predicting a warmer than average winter with less precipitation for much of the United States except the Pacific Northwest.

"It will be a lot like last year but the climate models are even more in agreement now than they were last fall," said Mike Halpert, head of forecast operations at the National Oceanic and Atmospheric Administration's Climate Prediction Center.

"Temperatures will be warmer than average in most places except the northwest of the country, which could see some cold."

Forecasters believe the emergence of a La Nina condition -- unusually cold ocean temperatures in the equatorial Pacific Ocean -- will be the main factor behind the anticipated warmth for much of North America.