China has abundant small hydropower(SHP) resources, which are economi-cally feasible for development. The

developable potential amounts to 100 GWand it is scattered over more than 1,500 outof the nearly 2,300 counties in the country.Up to the end of 2002, China has estab-lished 652 Primary Rural ElectrificationCounties. The number of SHP stationsoperating in the country is 42,221 with anaggregate installed capacity of 28,489 MW,accounting for more than one quarter of thecountry's total developable potential. From

the outset, the purpose of SHP developmenthas been to provide electricity for China'srural areas. This ongoing process has wit-nessed large-scale development with aninstalled capacity addition of more than2000 MW annually. China has thus createda new record in world hydropower develop-ment, and the country's SHP practice hasattracted international attention.

SHP classifications anddevelopmentThe definition and classification of SHPvaries from country to country and may varyfrom time to time. In China, hydropowerplants with installed capacity of less than 25MW are currently referred to as SmallHydropower (SHP) and are usually integratedinto the local grid. This definition has devel-oped and changed according to the needs ofthe economy, levels of rural energy consump-tion, and local capabilities. Hydropower sta-tions in China can be further classified intofive basic groups, according to their installedcapacity: I, II, III, IV and V. The classifica-tion standard changes with time as shown inTable 1. Class IV and V usually require lessengineering works and are referred to as Small- I, and Small - II hydropower stations.

In classifying and defining SHP capacityrange, the following factors must be considered:• Electricity Demand: Usually, SHP sta-

tions supply electricity to rural areas andcounty or village-run industries. InChina, the level of rural electricity con-sumption is still low. For instance, aver-age installed capacity required in a coun-ty is about 50 - 100 MW.

• Ability to Develop SHP potential: Themain developers and funders of SHP con-struction are the county, the village orindividuals. For instance, about 100 mil-lion Yuan (US$ 12 million) of investmentis required to build a SHP station with aninstalled capacity of 10 MW. The centralgovernment provides only limited support.

• Selection of Equipment: Ideally, in theconstruction of SHP stations, at leasttwo units of basic equipment areinstalled. When one unit is in repair ormaintenance, the other unit can still gen-erate electricity. If selecting more thantwo units, it will increase the cost of sta-tion construction and operation.

36 reFOCUS November/December 2004 1471 0846/04 ©2004 Elsevier Ltd. All rights reserved.

Small Hydropower

Large scale development of small hydro power in China is provid-ing much needed electricity for rural areas in the region with morethan 2000MW being added annually. Professor Tong Jiandong,Director-General of the International Center on Small Hydropower(IC-SHP), and Charlotte Hicks, China Affairs Division, IC-SHPdescribe how China is attracting international attention with thecreation of a new record in world hydropower development.

SMALLHYDROPOWERIN CHINA A new record in world

hydropower development

Further informationContact: Charlotte Hicks, ChinaAffairs Division, On behalf of Prof.Tong Jiandong Director General, IC-SHP. International Center on SmallHydro Power, Nanshan Lu 136, POBox 202, 310002 Hangzhou,P.R.China.Tel: +86 - 571 - 8707 9113; Fax:+86 - 571 - 8702 3353; E-mail:hicks.charlotte@inshp.org ;www.inshp.org

Powerhouse at Hepan Qiao, lowhead, 4 x 1000kW units

The capacity range of SHP stations areclosely related to development of the nation-al economy. It is especially tied to the levelof development of the rural economy andthe level of rural electricity consumption.For instance, in the 1950s, a hydro stationof installed capacity less than 500 kW wasreferred to as a 'rural hydropower station'.In the 1960s, the capacity range of SHP wasincreased to include stations up to 3 MW.At the end of 1960s, the increase in agricul-tural and industrial activities in rural areas,and the increase in the capability for indige-nous equipment manufacturing saw thecapacity range of SHP expand again. Itincreased to 12 MW with a unified countygrid and voltage was generally less than 35kV. With the introduction of the smallhydro-based National Rural ElectrificationProgram, the capacity range of SHP furtherincreased to 25 MW, with a unified countygrid and voltage less than 110 kV.

Although China now classifies SHP as upto 25 MW, the State Planning Committeeand the Ministry of Water Resourcesdeclared in the 1990's that all hydropowerstations with installed capacity less than or

equal to 50 MW should also benefit fromthe SHP preferential policies. A number oflocal grids with a capacity of several hun-dreds of kVA have also been built. In addi-tion, the manufacturing industry and equip-ment specifications define SHP ashydropower stations with less than 12 MWinstalled capacity, including two units of 6MW each. In China, the continuing growthof the national economy and rural energyconsumption ensures that the definition ofSHP capacity range is always increasing. Asin other countries, the classification of SHPcapacity should aim at promoting the devel-opment of SHP, and should be based on aproper assessment of indigenous capabili-ties, local electricity consumption, and theability to manage rural economic develop-ment. In addition, given increasing environ-mental concerns, most countries have decid-ed to fix the definition of SHP capacity at10 MW. The 1st and the 2nd SHP interna-tional conferences held at Kathmandu in1979, and at Hangzhou and Manila in 1980defined SHP as follows: 1001 - 10,000 kWas Small; 101 - 1,000 kW as Mini; less thanor equal to 100 kW as Micro.

Table 2 shows the progress of recent SHPdevelopment in China. Its rapid develop-ment is mainly located in southeastern andsouthwestern parts of China. The SHPinstalled capacity in the 15 provinces (of atotal of 30), accounts for about 91.6% ofthe total installed capacity in China. As of2002, SHP installed capacity (in MW) alsostood at 33.7% of the installed capacity oflarge hydropower (LHP).

This rapid rate of SHP development has helped China to accumulate valuableexperience, and to establish its own unique SHP development managementsystem. The main features of this systeminclude:• A decentralized approach for SHP

development• The use of special policies and strategies • Close integration with rural

electrification construction• Various channels of capital investment• Cost-effective SHP technology• Indigenous equipment manufacture• Development of local grid for SHP

projects• Prioritizing training

www.re-focus.net November/December 2004 reFOCUS 37

Small Hydropower

Unit: 10 MW

Class Before 1959 In 1959 In 1964 SDJ12/78 SDJ217/87 GB5020/94I ≥ 25 ≥ 50 ≥ 25 >75 - ≥ 120II 25-2.5 50-5 25-2.5 75-25 - 120-30III 2.5-0.1 5-0.5 2.5-0.3 25-2.5 25-2.5 30-5IV 0.1-0.01 0.5-0.05 0.3-0.05 2.5-0.05 2.5-0.05 5-1V <0.01 <0.05 <0.05 <0.05 <0.05 ≤ 1.0

Table 1: Definition and classification of Small hydropower in China over time

A hydropower installation in China

These features form an SHP sustainabledevelopment mechanism that stimulates theChinese government, public utilities, invest-ment groups and local people to maintain astrong interest in SHP activities, and to con-tinue to develop SHP potential with strongannual investments.

Ecology-oriented SHPdevelopmentAccording to published information, theworld's hydropower potential providesroughly 19 % of global electricity genera-tion, and reduces 539 million tons of CO2emissions. However, in previous centuries,the overall aim of most hydropower devel-opment was only electricity generation,with little concern for its impact on theenvironment. In order to achieve the sus-tainable development of hydropowerresources, full attention should be paid toits effects on the surrounding environment,forests, and climate change, rather thanonly considering the exploitation ofhydropower potential.

Apart from its mature and proven tech-nology, low investment risk, easy mainte-nance and low operation cost, the followingreasons further encourage the use of SHP as a sustainable energy source for ruraldevelopment:

1) SHP can provide electricity genera-tion, sustainable economic developmentand environmental protection. BecauseSHP projects are small-scale with a shortconstruction period, they have feweradverse effects on the environment, and caneven improve the local environment afterthe station is built. Further, SHP hasnumerous social, environmental and eco-

nomic benefits. Therefore, SHP construc-tion can meet the needs of rural economicdevelopment without having a negativeinfluence on the development needs offuture generations.

2) Replacing fuel wood with SHP-basedelectricity has increased the proportion ofclean energy in the rural energy structure. Inmany countries, fuel wood and forestresources are regarded as "free for all" energyresources. Over exploitation has caused soilerosion, desertification and flooding.According to the statistics of the Food andAgriculture Organization (FAO), about 100million people globally are almost withoutfuel wood, and 1 billion people have accessto only inadequate quantities. An over-dependence on fuel wood will furtherdestroy the surrounding environment andobstruct clean power generation in ruralareas. Therefore, replacing fuel wood withSHP-based electricity can positively reformthe rural energy structure, reduce theexploitation of forests and improve environ-mental protection.

3) SHP-based rural electrification con-struction has the additional advantages offlood control and improvements to therural ecology. According to the experienceof some areas, multipurpose SHP develop-ment can combine station constructionwith small river basin development, andwater and soil conservation. This can effec-tively improve the surrounding environ-ment. For example, in Dehua County inFujian Province, through the primary ruralelectrification construction, more than 100SHP stations were built with a totalinstalled capacity of 30,000 kW. All townsand villages in the county were electrified

and the rural energy structure was trans-formed. Before the rural electrification con-struction, the use of firewood accounted for66.5 %, coal for 10.4 % and electricity foronly 7.7 % of energy consumption. Fiveyears later, electricity accounted for 68.5 %,coal for only 4.8 % and fuel wood for 12.5% of energy consumption. The forest cov-erage increased from 50 % to 72 % within10 years, demonstrating the dual advan-tages of SHP development and environ-mental protection.

4) In recent years, the attention given toglobal environmental protection and climatechange has increased. Consequently, theinternational community is now attachinggreater importance to the development ofenvironmentally friendly energy sources,such as renewable resources. SHP develop-ment has become an important measure insolving environmental problems and indeveloping clean power generation, and iswidely accepted all over the world.

However, SHP has not always been acompetitive option. First, it has higher unitcost in the small rural electricity market.Second, its size was considered too small,with less electricity generation but a highinitial investment. Third, under the marketeconomy system, the prices of other conven-tional resources were unreasonably low withgovernmental subsidies. Therefore, govern-mental commitment and encouragementwas needed to ensure SHP development. Insome counties, local governments haveraised the price of electricity, guaranteed aproportion of SHP, and provided subsidiesand tax exemption for research and develop-ment, as well as for development of renew-able energy sources.

38 reFOCUS November/December 2004 www.re-focus.net

Small Hydropower

Year SHP SHP/LHP

Installed Annual MW Ratio TWh RatioCapacity(MW) Output(TWh) (%) (%)

1970 1019.0 - 16.4 -1975 3083.2 6.7 23.0 14.11980 6925.5 12.7 34.1 21.91985 9521.0 24.1 36.0 26.11990 13180.0 39.3 36.6 31.11995 16646.1 55.4 32.7 32.62000 24851.7 80.0 31.3 33.82001 26262.4 87.1 31.7 32.92002 28489.3 94.7 33.7 31.1

Table 2: Recent SHP development in China.

Clean generation inrural areasThe majority of people in China live in ruralareas. In recent years, increases in populationand environmental damage have caused cli-mate changes, natural disasters, inadequateenergy supply, deforestation and soil erosion.In most rural areas, because of lack ofpotable water, electricity and convenienttransportation, the local economy remainedunderdeveloped and people were very poor.In some areas, hygienic conditions and med-ical facilities were deficient, and the educa-tional situation was unacceptable, with anincreasing rate of illiteracy every year. Inother areas, people were over-exploiting theforests for fuel wood, causing environmentaldamage leading to desertification. Theseproblems were particularly common in thewestern parts of the country.

With the development of the rural econo-my and society, the need for better qualityrural energy also increased. Economic devel-opment and consequent improvements inliving standards not only required anincreased energy supply, but also a properenergy structure. The current level of energysupply is not able to sustain the growingeconomy in a sustainable manner, and thisdemands that more attention should begiven to SHP development.

From 1992 to 2001, the amount of elec-tric equipment for agriculture and agro-pro-cessing, and irrigation and drainage, onlychanged very slightly. But electric equipmentused for agricultural production, countyindustry, and town and village enterprisesincreased by 1.7 times, 1.4 times and 1.8times respectively. The household sectorexperienced the fastest rate of increase of thecapacity of electrical appliances, at 2.4 times.The growth rate of electricity consumptionwas also faster than that of equipment capac-ity. From 1987 to 1996, electricity consump-tion for production increased 2.6 times andelectricity consumption for household use

increased by 35.9 times. This shows that thedevelopment of rural electric power is close-ly related to the rural economic structure andto people's living standards.

With the development of SHP, the elec-tricity consumption has increased rapidly.The electricity consumption in rural areas ofChina increased from 51 billion kWh in1978 to 408.8 billion kWh in 1996. In2001, only in SHP supplied rural areas, itreached 398 billion kWh, with per capitaconsumption of 526 kWh. The proportionof rural electricity consumption to thenation's total consumption has alsoincreased, from less than 1 % in 1949 to 37% in 1996. By the end of 2001, the house-hold electricity consumption accounted for8.6 % of total rural energy consumption,and rural industrial production consumptionwas 21.5 %. In the past, electric power wasmostly used for irrigation and drainage,accounting for 65 % of total electricity con-sumption. After 1979, town and village runindustries developed rapidly, accounting for58.7 % of the total rural electricity con-sumption by the end of 2001.

With the development of the economyand the improvement in living standards,electricity consumption for household usealso increased. In 1985, the rural householdper capita electricity consumption was 15kWh. This increased to 36 kWh in 1991. In1996, the household electricity consumptionin rural areas accounted for 24.9 % of thetotal. With the economic development andpopularization of electrical appliances, theannual per capita household electricity con-sumption increased to 200-600 kWh. Theelectricity consumption for more than 10 %of households was more than 1000 kWh perhousehold annually. The increase of electric-ity consumption for household was related toincreases in income, adequate and regularelectricity supply, and increases in electricalend-use devices. At present, China's house-hold electricity consumption is still lower

than in developed countries, where itaccounts for 23-37 % of the total.

In order to promote clean energy genera-tion in rural areas and improve environmen-tal protection, plans are made to developmore ecology-oriented SHP with the aim ofreplacing fuel wood with electricity in areaswhere abundant small hydro resources exist.The situation of these areas can be seen inTable 3 . According to the national plan,28.3 million households would require33.95 billion kWh of electricity to replacefuel wood for cooking and heating, needinga further 24,038 MW of installed capacity.The required investment reaches 127.26 bil-lion Yuan (ca. US$15.4billion). Out of this,122.60 billion Yuan will be used for powerstation construction and 4.66 billion Yuanwill go towards the construction of transmis-sion lines. The majority of these funds willbe in the form of grants from China's centralgovernment. China's commitment to thedevelopment of SHP resources indicates abroad recognition of its benefits and its wideacceptance in society.

Penstock for an SHPstation in China

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Small Hydropower

Scale Returned Farmland Natural Reserve Natural Forest Soil Erosion Totalto Forest Areas Protection Zone Controlled Area

Area(m. hec) 0.74 56.15 39.91 51.57 148.37Households (M) 6.97 2.44 6.63 12.27 28.31Population (M) 26.25 8.89 23.57 45.24 103.95

Table 3: The planned areas to replace fuel wood with SHP

According to economic analysis, the perkW investment for these SHP stations wouldbe 5,100 Yuan (ca US$620), the annual elec-tricity usage would be 3,250 hours and elec-tricity consumption would be 1200kWh/capita. Bank loans will account for 50% of the total investment, and the deprecia-tion limit of these power stations is 20 years.Therefore, the electricity price of 0.23 Yuanper kWh is acceptable, showing that the con-struction of SHP stations will be economi-cally viable, as well as providing significantenvironmental benefits. This will provide afurther stimulus for expanded SHP develop-ment in China.

SHP protects Giant PandasWolong Natural Reserve of Fenchuan inSichuan Province is home to Giant Pandas.The county is located in Weishan town andis surrounded by large valleys. In the past,the residents of this area relied heavily onfirewood for fuel. With the growing need forlumber, large areas of forest were destroyed,leaving only barren hills. Consequently, thelack of firewood tackled was not the onlyproblem requiring attention, but also soilerosion, debris flows, droughts, and sandstorms. Since 1958, the county governmenthas been taking several measures to restorevegetation, such as a program to 'stop farm-ing along the hills', tree planting, forest plan-tation, and so on. These measures aimed atpreventing the local people from gatheringfirewood from the forests, and since there areno fossil fuels in these areas, the only optionleft was the development of SHP stations.

In 1960, the prefecture government estab-lished the first hydropower station of 4000kW in Wenchuan. Initially, there was verylittle industrial load demand, and so the

abundant water flow during the wet seasonwas not fully utilized. To build up consump-tion during this season, the local governmentprovided subsidies to the local people to pur-chase electric stoves, enabling them to cookwith electricity. Each household only paid afixed monthly amount of 1 Yuan (caUS$0.12) for all the electricity they con-sumed. Eventually, the local people devel-oped the habit of cooking and heating withelectricity due to its the convenience, and thedemand for electricity increased rapidly inthis county. According to statistics, the num-ber of households who used electricity forcooking reached 55,000 or 30 % of the total,in 1992. In the centre of the county andwithin the neighbouring towns, the figurereached 72 % and the average per capitahousehold electricity consumption rose to744 kWh.

The Primary Rural Electrification Countyprogram has gradually reduced the rate ofdeforestation and has effectively protectedthe natural forests of Wolong Natural ForestReserve. Wolong Natural Forest Reserve,which occupies 200,000 hectares of land, isthe largest Panda Reserve in China. Itincludes both the UNESCO Human and

Bio-diversity Programs and the PandaResearch Center. With more than 100 raremammal species such as Pandas, andGolden Monkeys, more than 2,000 kinds ofinsects, more than 300 kinds of birds andmore than 100 varieties of medicinal plants,the Natural Reserve has become a moun-tainous ecosystem with rich biologicalresources for genetic research. In order toprotect this ecosystem, five micro hydropower stations have been constructed toprovide power for thousands of people liv-ing in the surrounding area. The countygovernment subsidized one third of themoney needed by the local Qiang minoritypeople to buy electric cookers and otherappliances, with the aim of discouragingthem from using firewood for cooking andprotecting the forest effectively.

According to the statistics for the periodfrom 1982 to1989 (although data is missingfor some years), a total of 32 million kWhhas been used in the county to replace fuelwood, and thus saving a total of 1,100hectares of forest from destruction. This areais actually equivalent to three times that thearea serviced by the County Forestry tree-planting program since 1958. These remark-able ecological benefits will provide futuregenerations with a long-standing treasure. By1996, the total installed capacity of SHP inWenchuan rose to 36.8 MW and the annualelectricity output reached 170 million kWh.If all the power were used for cooking, about0.15 million m3 of timber would be savedper year. By the end of 2001, with more SHPstations built by local government and morerecognition by local people of multiple ben-efits of SHP, the total installed capacity was218.6 MW with annual electricity output of711.4 million kWh, signaling a new stage inlocal SHP development.

40 reFOCUS November/December 2004 www.re-focus.net

Small Hydropower

SHP Plant in Jinhua, Zhejiang Province

Francis turbines in an SHP plant