China, People's Republic of: Development of Biomass Power Generation in Rural Areas

Sovereign Project | 40637-012

Summary

The proposed TA will assist in the utilization of biomass energy resources in rural areas of the poorer western, central and north-eastern provinces. The TA will analyze the optimal utilization of existing biomass technologies in 2-3 targeted poorer provinces. The TA will also assist PRC achieve the 11th five year plan target for reduction of SO2 emissions by 10%, through diversification of energy supply away from coal fired generation.

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Project Name Development of Biomass Power Generation in Rural Areas
Project Number 40637-012
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7006-PRC: Development of Biomass Power Generation in Rural Areas
ATF Second Denmark Renewable Energy US$ 600,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Energy - Renewable energy generation - biomass and waste
Gender Equity and Mainstreaming No gender elements
Description The proposed TA will assist in the utilization of biomass energy resources in rural areas of the poorer western, central and north-eastern provinces. The TA will analyze the optimal utilization of existing biomass technologies in 2-3 targeted poorer provinces. The TA will also assist PRC achieve the 11th five year plan target for reduction of SO2 emissions by 10%, through diversification of energy supply away from coal fired generation.
Project Rationale and Linkage to Country/Regional Strategy

The rapid increase in energy demand to fuel the economic growth of the PRC economy has contributed significantly to increased environmental pollution. These impacts include acid rain, impact to public health, and global climate change through increased release of greenhouse gases. In recognition of the adverse environmental impacts from the increase in coal fired electricity generation and response to issues of energy security, PRC has identified development of renewable energy as a strategic priority under the 11th five year plan. In rural areas of PRC, biomass represents an under utilized resource which is often burnt in the fields or left to decompose, thus contributing to emission of greenhouse gases (carbon dioxide and methane). Biomass projects that generate electricity will have significant poverty alleviation benefits, they will develop a market for previously unutilized agriculture biomass, and improve energy services to predominantly rural areas.

In order to promote biomass projects, National Bio Energy Corporation Limited (NBE), a majority government owned corporation, was created specifically to promote biomass generation projects. Where appropriate, ADB will coordinate with NBE to facilitate development of biomass projects.

The TA will assist in the utilization of biomass energy resources in rural areas. The TA will analyze the optimal utilization of existing biomass technologies. The TA is consistent with PRC objectives to develop renewable energy resources and address development of poorer western provinces. The TA will support efforts in achieving the 11th five year plan target for biomass electricity generation of 5,500 MW by 2010. The TA will also assist PRC achieve the 11th five year plan target for reduction of SO2 emissions by 10%, through diversification of energy supply away from coal fired generation. The Renewable Energy Law, that came into effect on 1 January 2006 promotes power generation from biomass, and a subsequent decree provides the basis for determining the power tariff which is about 25 fen more than power generated from coal fired generation. The proposed TA is consistent with the ADB (i) Medium-Term Strategy II, 2006?2008 strategic priority of managing the environment, and (ii) PRC Country Strategy and Program strategic development objective of improving the environment.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location PRC
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

International and national consultants will be selected and engaged in accordance with ADB Guidelines on the Use of Consultants. The services of consultants will be provided through a consulting firm selected after the submission of simplified technical proposals and the use of quality and-cost based selection methods.

The estimated allocation of consulting services will be 4 international consultants (combined 9 person months), and 9 national consultants (combined 38 person months). International consultants will include (i) Biomass Power Generation Expert, (ii) Biomass Power Generation Financial Specialist, (iii) Cellulosic Ethanol Specialist, and (iv) Biomass Resource Assessment Specialist. National consultants will include (i) Biomass Energy Specialist, (ii) Biomass Power Generation Process Engineer, (iii) Financial Specialist, (iv) Environment/Social Impact Specialist, (v) Cellulosic Ethanol Specialist, (vi) Biomass Financial Analyst, (vii) Biomass Resource Specialist, (viii) Renewable Energy Planner, and (ix) Workshop/Conference organizer.

Responsible ADB Officer Merlita Pajarillo
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
National Bio-Energy Co. Ltd.Mr. Zhuang Huiyongzhy@nbe.cnFloor 9, Huashi Building, No. 26B Financial Street, Xicheng District Beijing 100032, P.R. China
Timetable
Concept Clearance 23 Feb 2007
Fact Finding 06 Aug 2007 to 11 Aug 2007
MRM -
Approval 10 Dec 2007
Last Review Mission -
PDS Creation Date 23 Mar 2007
Last PDS Update 14 Jan 2010

TA 7006-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2007 28 Mar 2008 28 Mar 2008 31 Jan 2009 31 Jan 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 600,000.00 200,000.00 0.00 0.00 0.00 800,000.00 10 Dec 2007 501,825.67

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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