Third Asia-Pacific Dialogue on Clean Energy Governance, Policy, and Regulation

Success in Electrification and Transition to Clean Energy (Policies & Barriers Analysis)

Wang Sicheng
Energy Research Institute, NDRC June 4-5, 2012 Manila

China is Facing Problems in Energy Supply and Environment

The Ratio of Exploitation Speed and the Available Resources (year)
250.0

1Sustainable of Energy Supply 2Sustainable of Environment

World China

The Ratio (Year)

200.0 150.0 100.0 50.0 0.0 Coal Oil Gas Uranium

Resources

Problems
1The largest country in GHG emission

2The largest producer and user of electricity

3The largest importer of coal 4The second largest importer of oil 5Serious shortage in energy supply and serious pollution in environment

China Renewable Energy Law

To promote renewable energy development, the RE Law was released by Chinese Government in 2005 and updated in 2009. The main issues are:

1. The RE electricity must be totally purchased by grid company with reasonable FIT; 2. The fund to support RE comes from the surcharge in the level of 0.8 cents/kWh. 22 billion Yuan per year can be collected from all electricity users. 3. The fund will be used to subsidy RE electricity and support rural electrification.

Incentive Policies Specially for RE

22 Billion Yuan per Year

10 Billion Yuan per Year

Un-electrified Households & Population in China - 2006

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Province Yunnan Sichuan Tibet Inner-M Guangxi Chongqing Gansu Henan Qinghai Shaanxi Guizhou Xinjiang Hubei Guangdong Jiangxi Heilongj Army-Xinj Un-Electrified Households 503003 476707 212431 186658 163302 153699 123936 134472 89488 126838 111830 95300 72947 47938 45854 34590 23234 Population 2189361 1939150 1200668 746632 727892 552297 523394 505372 495372 477831 466350 415700 243482 238417 191434 104876 78106 18 19 20_1 20_2 21 22 23 24 25 26 27 28 29 30 31 32 33 Shanxi Ningxia Liaoning Dalian Fujian Hebei Hunan Hainan Jiangsu Anhui Beijing Shanghai Tianjin Jilin Zhejiang Shandong Total N N N N N N N N 2695681 No. Province Un-Electrified Households 12744 12664 10854 9821 4797 2800 31074 8700 Population 50976 49650 33403 44670 20901 11909 124595 35000 N N N N N N N N 11467438

About 2.7 million households with 12 million people without electricity. (1% of total population in China)

The Solution for Rural Electrification

1. Grid Extension: sponsored by National Grid Co. and through commercial way and less subsidy.

2. Small Hydro-Power: sponsored by National Grid Co. and through

commercial way and less subsidy. 3. Renewable Energy (PV and small wind): sponsored by government and 70100% subsidy provided; 4. Moving Away: Moving to better places in case the condition of the original places is not suitable for human living. Financed by government.

Where is the subsidy money come from?

1. Surcharge of RE: 0.008 Yuan/kWh, 22 billion Yuan can be collected each year. Nearly 100 billion Yuan can be collected to support power construction.
2. Special Fund for RE: Ministry of Finance, about 10 billion every Year. 3. Surcharge of Rural Grid Extension: 0.02 Yuan/kWh, 55 billion Yuan can be collected each year;

More than 80 billion Yuan each year to support rural electrification and renewable energy

Government Sponsored PV Projects since 1990

PV Power Electrification for Un-Electrified Counties. 7 unelectrified county towns were powered by PV village power systems and total power is 425KWp (1990-1996 and mainly in Tibet). Pilot Project of Brightness Program Sponsored by NDRC. This project covers 3 provinces (Tibet, Inner-Mongolia and Gansu) and total investment is 20,000,000 Yuan. (2000-2003 and mainly PV and Wind/PV home systems). Tibet Sunshine Project for Arli District, Tibet (approved by Li Lanqing, Vice premier). Total investment is 70,000,000 Yuan to build 11000 SHS and 38 village power systems (2001). Sending Electricity to Villages Program in 2002. 717 PV and wind/PV village power systems were installed with total capacity 18MW, the largest PV village power supply is 150kW. 2006-now: Electrification for Un-electrified Areas headed by National Grid Company (100% supported by government). 510MW every year. Golden Sun Demonstration Program since 2009

Rural Electrification

Solar Home Systems

PV Business

There are more than 100 small companies are selling SHS in western China.

Wind-PV-Diesel-Battery Hybrid Micro-grid at Dongfushan Island, Zhejiang Province

Diesel Generator: 250kW, Wind Turbines: 210kW, PV: 100kW, Battery Bank: 980kWh Voltage of the transmission line on the island: 10kV

Hydro-Power and PV Hybrid Micro-gridQinghai Prov.

Location: Yushu, Qinghai Province System Configuration:

1Hydro-power: 12MW 2PV Plant: 2.0MW; 3Battery: 15.2MWh.

Complete Time: Dec., 2011

International Cooperation
Plug & Play Solar Pumps

PV TV Sets

Solar Schools

Solar Clinics

Chinese Government Announced in 2009 Non-Fossil Energy will share 15% by 2020
Announced by Chinese Government in Nov. of 2009:
1. 40-45% of GHG Emission for unit GDP will be reduced by the year of 2020 comparing with the level of 2005; 2. Non-fossil Energy will share 15% of total energy consumption by 2020. By 2020, total energy consumption in China will reach to 4.6 billion Tce, than the total non-fossil energy should be 0.7 billion Tce.

Non-Fossil Power Target of China

(2011 2015 - 2020) 2011 Type Hydro Wind PV & CSP Biomass Power Nuclear Subtotal Coal Gas Inst.Cap. GW 230.51 47.00 3.30 6.00 11.90 298(28%) 706.67 32.65 2015 Inst.Cap. GW 260.0 100.0 15.0 13.0 40.0 428(31%) 900.00 40.00 Inst.Cap. GW 300.0 150.0 50.0 40.0 70.0 610(36%) 1020.00 50.00 2020 Generation TWh 1000.0 300.0 75.0 200.0 350.0 1925(28%) 4720.00 220.00

Others
Subtotal Total

23.73
763.05 1061.00

32.00
972.00 1400.0

20.00
1090.00 1700.0

90.00
5030.00 6955.0

Case from China

1. The RE Law; 2. The National Plan to set near / long term target of RE; 3. The special fund to support RE and Rural Electrification (80 billion Yuan each year); 4. Government sponsored projects and program; 5. All activities were implemented by the commercial way and market competition. (Business Models).

Thank You for Your Attention!