SHP-based Rural Electrification in China - Hangzhou Regional ...

SHP in China
Table 3 Electrification of the third batch of 335 counties (1996-2000)
No. Item Before After
electrification electrification
1 Installed capacity (MW) 3,650 5,650
2 Annual generation (10 6 kWh) 14,800 18,000
3 Per capita power use (kWh) 143 208
4 Domestic production value 234,500 477,800
(10 6 RMB Yuan)
5 Financial revenue of counties 15,000 25,500
(10 6 RMB Yuan)
6 Annual mean net income of 1,082 1,914
farmers (RMB Yuan)
km of transmission lines with 110kV volving 24 provinces or cities, nearly
voltage or above were newly set up, 200 million people, and an area of
together with 42,036 km of 35 (63kV) about 2 million km 2 .
transmission lines and 225,000 km of
10 kV distribution lines.
2 Principles and policies of rural
By the end of 2000, there was a electrification
total installed power capacity of 20,
265MW in the 653 hydro-based primary
In order to effectively promote the
rural electrification counties, of development of the pilot rural electri-
which the hydro installed capacity fication counties, the State Council
amounted to 17,697 MW. The generation
issued a special document, which
in 2000 reached 68,250 GWh, defined the policies that the govern-
and 59,770 GWh came from ment would adopt for electrification
hydropower. There were 822 substations
of the pilot rural counties.
of 110 kV and above, with a ca-
(1) Policies for the first batch of 100
pacity of 23,440,000 kVA, and 4,280 pilot rural electrification counties
of 35 (63) kV substations with a capacity
On December 12, 1983, the State
of 21,380,000 kVA. Council promulgated the [1983] 190
Furthermore, there were 30,059 km of Document, which clarified various
transmission lines of 110 kV and questions about relevant policies and
above, 95,253 km of 35 (63) kV, and management systems.
694,100 km of 10 kV distribution lines. In order to help SHP develop continuously
After completing the third batch
and steadily, SHP con-
of primary electrification counties struction carried out at the county
during the “9th Five-year Plan” (1996- level and above shall be listed in the
2000) period, the per capita annual net local capital construction plan in the
income of farmers rose from 1,082 future, so as to ensure the supply of
Yuan to 1,914 Yuan. During the “10th essential goods, materials or
Five-year Plan” (2001-2005) period, equipment. The investment for all
China is going to invest over 70 billion
SHP stations which are collectively
Yuan to build another 400 hydro-
owned or which are self-built, self-
based rural electrification counties, so managed and with self-consumption
as to promote the development of the by the farmers themselves do not
rural economy. 80% of these 400 need to be in the State plan in order
counties will be in the central and to avoid dampening their enthusiasm.
west regions, and 85% belong to the Construction funds for SHP stations
former revolutionary, ethnic, remote
should mainly rely on local
and poverty-stricken districts, in financing, with the central govern-
local people. In those counties with
4 www.hrcshp.org SHP NEWS Autumn 2004
ment offering support as necessary.
From 1985, it is proposed to allocate
100 million Yuan every year from the
power infrastructure investment budget
to support some county-run small
power stations. If these stations are
really profitable, a certain proportion
of profit should be collected to support
SHP construction in other places.
Implement the policy of “Electricity
supports electricity”. The profit
of newly built SHP stations and the
wholesale profit from power grid
sales to counties should not be included
in the local financial budget.
All income, except production costs
(including salary, materials, depreciation
of fixed assets and major repair
costs) and planned loan repayments,
should be used for developing SHP
stations and local small power grids.
Continuously implement the lowinterest
loan policy for SHP
development. From January 1984, the
agricultural loan interest rate was adjusted
to 0.6% per month on average,
and a new monthly interest rate band
was set ranging from 0.36% to 0.72%.
In order to motivate production teams
and rural households to develop
SHP, it is proposed to grant loans for
procuring equipment for newly built
SHP stations at the low end of the
band, i.e. a monthly interest rate of
0.36%. Meanwhile, the loan repayment
time was extended from the originally
stipulated 3-5 years to 10 years
in case of necessity. The profits
should be firstly used to repay loans
according to contract, and the rest
can then be used for “supporting
electricity with electricity”.
Regarding SHP management,
those SHP stations, thermal power
plants, power grids, wind-power
stations, geothermal power plants
and other rural power projects which
are built by local production teams
should be run and managed by the