The Status Quo, Barriers, and Countermeasures to Small Hydropower Development in Rural China...
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Transcript of The Status Quo, Barriers, and Countermeasures to Small Hydropower Development in Rural China...
The Status Quo, Barriers, and Countermeasures to
Small Hydropower Development in Rural
China
Hydropower and Rural Electrification Development Bureau, the Ministry of Water Conservancy
Liu Jinghe
Contents Small Hydropower Resources in
China Achievements Barriers
Internal problems of small hydropower Institutional, market, and policy barriers
Recommendations Prospects
I. The Small Hydropower Resources of China Theoretical potential: 676GW, annual electr
icity generating capacity: 5920TW.h. Technologically exploitable: 378GW, accou
nting for 13.22% of the world total, annual electricity generating capacity: 1920TW.h.
Of which: small hydropower 128GW,annual generating capacity: 640TW.h. Share in China’s hydropower production: 29.7%,ranking No. 1 in the world.
Hydropower Resources of Selected Countries
0
100
200
300
400
Chi na Brazi l Russi a Canada USA
180% 120%
250%210%
Small hydropower 128GW
The Distribution of Small Hydro-power among Different Regions
,东部18. 50%
,中部17. 80%,西部
63. 60%West
East
Central
The Untapped Shares in Different Provinces
0
500
1000
1500
2000
2500
Hebei
Shanxi
InnerMongolia
Liaoning
Jilin
Heilongjiang
Zhejiang
Anhui
Fujian
Jiangxi
Henan
Hubei
Hunan
Guangdong
Guangxi
Hainan
Chongqing
Sichuan
Guizhou
Yunan
Tibet
Shannxi
Gansu
Qinghai
Xinjiang
省份
装机
容量
UntappedExpl oi ted
Province
Inst
alle
d C
apaci
ty
II. China’s Small Hydropower Development Achievements
Development speed: 5% ~ 10% By the end of 2003: there have been 48000 small hydr
opower stations in over 1600 counties, their installed capacity is 31.2GW and annual electricity output 110TW. h , both accounting for 40% of the national total
More than 800 county grids and over 40 regional grids have been built, more than 800 counties mainly rely on small hydropower for electricity supply
Accumulatively, giving electricity supply access to more than 500 million people
Achievements (Contd.) In through phases, 653 rural counties realize pre
liminary electrification; the GDP, fiscal revenue, per capita farmer income, and per capita electricity use are “doubled in 5 years” and “quadrupled in 10 years”
Cultivated thousands of small hydropower experts for 60 countries and regions, participated in the construction of hundreds of small hydropower projects in more than 50 countries
Ecological and environment protection, 100 mt t CO2 of GHG emission reduction
III. Barrier to Small Hydro-power Development in China
1. Inherent problems of small hydropower Small electricity production scale Instable supply: high water seasons and low wat
er seasons, peak and bottom hours Low technology level and efficiency of the gener
ating units Improper operation modes Operation suspension during overhaul and acci
dents
Barriers (Contd.)
2. Institutional, market, and policy barriers The resource administration system is im
perfect, vagueness in responsibility and function division
Electricity sales difficulty– market monopoly
Commonweal nature restriction— policy-based supply is insufficient, without the necessary compensation
Impacts of the Barriers (economic analysis)
Capacity deducted 30%, in some cases even as high as over 50% (Fig.)
The electricity production deduction in 2002 was 41TW.h, in terms of revenue loss, over RMB 10 billion
A comparison of the theoretical and actual electricity Outputof Chinese rural hydropower plants (1998-2002)
0
50
100
150
1998 1999 2000 2001 2002
(Tw.h)
Designed outputActual output
Capacity deductionhigher unit generating capacity construction cost and unit electricity generating costlosses (Fig.)
In 2002, the Chinese small hydropower projects’s actual average generating cost is 0.06 RMB/kW.h higher than the average designed generating cost
Among the 64 small hydropower stations studied: 11 realize some profits; 13 break even; 40 are in the red; namely, 62% of them report losses. The average actual electricity generating cost is 0.05RMB/kW.h higher than the average electricity price
Theoretical and Actual Production Costs of the 64Hydropower stations in 2002
00.10.20.30.40.5
( RMB/kw.h )
理论发电成本 实际发电成本Theoretical
generating costsActual generating
costs
The actual costs and sales price of the 64 small hydropower stations
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65
( RMB/kwh )
实际电价
单位售电成本
Actual power generating cost
Electricity price
IV. Policy Recommendations
Policy Direction: internalize the positive externality costs of rural hydropower through such macroeconomic measures as administrative laws and regulations, preferential electricity price, tax, subsidy so as to bridge the gap between production costs and social costs (Fig.)
Project cost curve
Policy direction
Market quantity
Optimal quantity
Electricity output ( Tkw.h )
Recommendations (Contd.)
Eliminate institutional and market barriers Specify and quantify the market share of
small hydropower Giving priority in grid access and require
the grids to purchase all the electricity output of small hydropower plants
Acknowledge its commonweal nature
Recommendations (Contd.)
Optimize the electricity pricing mechanism Offer market price protection to the grid entry
of rural hydropower ; protect them from direct competition with regular energy sources.
On the above basis, establish a grid entry and price control system to stimulate the development of rural hydropower
Recommendations (Contd.)
Strengthen capacity building on small hydropower enterprises Improve adjustability Optimize operating modes Adopt advanced technologies Intensify management, lay off
redundant workers, and increase efficiency
V. Development Prospects of the Chinese Small Hydropower Industry
Market demand Sustained rural economic growth, urbanization, incr
eases in farmer income, huge potential market. 400kW.h
Market supply Abundant resources, low exploitation rate. 128GW-3
1.2GW=96.8 The Renewable Energy Promotion Law– expected. E
normous financing potential: fiscal support, credit, private enterprises, foreign investment (Fig.)
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
1996 1997 1998 1999 2000 2001 2002 2003
Total National investmentDomestic loans Foreign investment
Local fund-raising (province, prefecture,city, county)
Other fund (electricity sales revenue, electricity construction foundation
Therefore, in terms of demand and supply potential, small hydropower projects have very promising market prospects in China.
~End~~End~
Thanks, Comments Thanks, Comments Welcomed!Welcomed!