Case study 9 China’s minigrids for rural electrification

Case study China’s mini-grids for rural electrification Township Electrification Programme Problem  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 Results  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 costbenefit 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