WSHPDR_2013_Final_Report-updated_version

In addition to the investment made by the Chinese
Government, over time many private investors have
become more involved in hydropower development.
Over a 10-year period, small hydropower investment
specifically experienced a gradual transition away
from central and local governments and towards
corporate enterprises (including those of foreign),
with joint ventures and private hydropower plants
accounting for an increasing proportion of the newly
installed capacity.
Moreover, a set of technical standard systems,
including a small hydro programme encompassing
design, construction, installation, experiment,
operation and equipment manufacture was set up to
provide technical support and service for small
hydropower development. 7
SHP installed capacity (up to 10
MW)
SHP potential (up to 10 MW)
SHP installed capacity (up to 50
MW)
SHP potential (up to 50 MW)
36 889 MW
63 492 MW
65 680 MW
128 000 MW
0 50000 100000 150000
Figure 2 Small hydropower capacities in China
Source: China Ministry of Water Resources 6
Table 2
Ownership of rural hydropower units in China
Type
Number of
SHP units
Proportion
(%)
Non-enterprise 2 217 8.94
Enterprise (all) 22 585 91.06
Wholly state owned 1 972 7.95
Holding state owned 1 003 4.05
Joint venture state owned 213 0.86
Collective 2 702 10.89
Private and others 16 695 67.31
Total 24 802 100.00
Source: Ministry of Water Resources 11
Note: Data from 2009.
In 2012, the unit cost of building new small
hydropower stations was about 8,000-10,000
yuan/kW (about US$1,305 to US$1,630/kW) while the
unit cost of refurbishment and efficiency expansion of
old stations was only one third at about 3,000
yuan/kW (about US$489/kW). The refurbishment and
efficient expansion of old stations generally do not
take longer than one year and do not cause migration
or environmental problems, hence they bring
technical, economic and environmental benefits.
Further progress can be made in the field of water
resources planning to maximize the use rate of
hydropower, to enhance the protection of the
environment, to minimize any negative impact caused
by hydropower development and to establish a
benefit-sharing mechanism for the displaced
population as well as by accelerating the development
of pumped storage stations.
Renewable energy policy
Under the 12 th Five-Year-Plan (FYP) there are aims to
achieve an 11.4 per cent share in non-fossil fuel
consumption and a 30-per cent share in non-fossil
fuel installed capacity by 2015. The hydropower
installed capacity will reach 290 GW, a 5.7-per cent
increase from 2010, wind to reach 100 GW, a 26.4-per
cent increase; solar energy to reach 21 GW, a 89.5-per
cent increase from 2010. 3
Legislation on small hydropower
The Chinese Government has passed a series of
policies to support and encourage local governments
and local people to develop their nearby, rich small
hydropower resources. ‘Self-construction, selfmanagement
and self-consumption’ has been a wellknown
policy guiding small hydropower development
in China since the early 1970s. As for the taxation
policy, value added tax for small hydropower has,
since 1994, stood at 6 per cent – much more favorable
than the 17 per cent tax on large hydropower stations.
The relevant Chinese authority is working to
promulgate a specialized regulation on rural
hydropower development and management in China.
The Chinese Government continues to support the
small hydropower sector in its 12 th FYP (2011-2015).
The first objective is to fully complete the National
Planning of New Rural Electrification i.e. to invest
43.52 billion Yuan (about US$7 billion) to build small
hydropower plants in 300 new rural electrification
counties, with a planned new installed capacity of
5,156 MW. This is expected to provide an energy
output of 19.16 TWh. 8
The second objective of the 12 th FYP is the wider
implementation of the tasks covered by Hydropower
for Fossil Fuel Power Plan 2009–2015 which aims to
solve, through firewood substitution, the fuel
concerns of 6.78 million rural residents and to protect
a forest area of 1,593,333 hectares, by constructing
1,022 small hydropower stations with an installed
capacity of 1,705.6 MW. 9
The third objective of the 12 th FYP is to carry out small
(rural) hydropower efficiency and capacity expansion
projects. A total investment of 3.75 billion yuan (about
US$600 million) has been planned for the
refurbishment of 620 rural hydropower stations with
a total capacity of 880 MW within a two-year period
233