Case study 9 China’s minigrids for rural electrification

Case study 9China’s mini-grids for rural electrification Township Electrification Programme...  In 2008, there were still an estimated two million households, or nine to ten million

Case study 9

China’s mini-grids for rural

electrification

Township Electrification

Programme

 In 2008, there were still an estimated two

million households, or nine to ten million

people, primarily in villages and farming areas

in western China, lacking electricity, according

to the National Energy Administration

How to solve?

 Township Electrification Programme

 From 2001 to 2005

 100% renewable energy system for village power

 688 villages: PV-battery mini-grids

 337 villages: small-scale hydro mini-grids

 Expand to 20,000 villages in 11 provinces

 Increased electricity access in

western provinces: provide electricity

to 1.3 million people

 Electricity for basis services but not

productive uses: improve quality of

life and economic development

 Stimulated solar PV production

A PV module in rural area in China

Lesson learned

A site-specific

cost-benefit analysis is

required

Tibetan home with 20-watt PV panel and 500-watt wind turbine

Success factors

 Public financing: US$ 293 million from central government and US$ 437 million from provincial government

 Government-led implementing: National

Development and Reform Commission (NDRC)

 Site assessment of energy resources: high solar insolation, good wind speeds, biomass resource

 Preference for local production: System

integrators responsible for design, installation, operation, maintenance

 Focus on capacity building: US$ 100 million for training and institutional development.

Considerations for replicating

 Ability to pay: gauge the ability, willingness and reliability of customers to make payments to

cover operation costs

 Supply and demand balancing: Pricing too low could lead to excessive demand whereas pricing too high could lead to non-use

 Operations and maintenance know-how: local technicians capable or operating and maintaining the mini-grids to maximize efficiency