China, People's Republic of: Renewable Energy Development in Qinghai

Sovereign Project | 44016-012

Summary

With a view to utilizing large potential of solar energy source in the province, the Qinghai provincial government sought Asian Development Bank (ADB) assistance. The proposed TA is included in the Aide Memoire of 2010 PRC Country Programming Midterm Review Mission as a firm 2010 TA. The proposed TA is aligned with ADB's Energy Policy in 2009 in terms of greater use of renewable energy. It also addresses the key pillars of the Country Partnership Strategy (2008-2010).

The impact of the TA will be lowered capacity barriers in the planning, design, construction, and O&M of grid-connected solar PV development in Qinghai Province.

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Project Name Renewable Energy Development in Qinghai
Project Number 44016-012
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7643-PRC: Renewable Energy Development in Qinghai
Technical Assistance Special Fund US$ 500,000.00
Clean Energy Fund - Multi-Donor US$ 200,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description

With a view to utilizing large potential of solar energy source in the province, the Qinghai provincial government sought Asian Development Bank (ADB) assistance. The proposed TA is included in the Aide Memoire of 2010 PRC Country Programming Midterm Review Mission as a firm 2010 TA. The proposed TA is aligned with ADB's Energy Policy in 2009 in terms of greater use of renewable energy. It also addresses the key pillars of the Country Partnership Strategy (2008-2010).

The impact of the TA will be lowered capacity barriers in the planning, design, construction, and O&M of grid-connected solar PV development in Qinghai Province.

Project Rationale and Linkage to Country/Regional Strategy

The 14th Session of the Standing Committee of the 10th National People's Congress in February of 2005 enacted the Renewable Energy Law of the People's Republic of China (PRC) that provides feed-in tariff for some renewable technologies, specifies grid-feed in requirements and standard procedures, and establishes incentives and supervisory measures for promoting renewable energy development. Both the 11th Five-Year Plan (FYP) for National Economic and Social Development and the 11th FYP for Energy Development also confirm to encourage the diffusion of renewable energy and increase its share in the total primary energy mix. In 2007, National Development and Reform Commission (NDRC) issued the Medium and Long-Term Development Plan for Renewable Energy in the PRC targeting to raise share of renewable energy in primary energy to 10% by 2010, and to 15% by 2020. In November 2009, State Council of the PRC announced voluntary action for climate change mitigation to reduce the intensity of carbon dioxide emission per unit of gross domestic product (GDP) by 40-45% by 2020 compared with the level of 2005. Raising the share of renewable energy to attain targeted energy mix by 2020 is also an integral measure for reducing carbon dioxide emission. Share of renewable energy in the total electricity generation has steadily increased from 7% in 2005 to 9% in 2008, and is likely to attain the target of 10% in 2010. However, the growth of all renewable energy sources have not shown uniform trend. While wind power has grown fast increasing from 1.3 gigawatt (GW) in 2005 to 25GW by 2009, the solar power has grown rather slowly.

The PRC has rich potential of solar energy with more than 5,000 mega joule per square meter (MJ/m2) of annual solar radiation and more than 2,000 hours average of sunshine in two-thirds of the country. Solar cell production in the PRC has been rapidly growing since 2004 and reached 4,100 megawatt (MW) in 2009 making it the largest in the world. However, installed capacity of solar photovoltaic (PV) is still 1.5 % of 20 GW target by 2020. Because of the small size of domestic solar PV market, more than 98% or 4,011 MW of solar cell production in the PRC has been exported to other countries. Creating domestic market for solar PV remains a challenge to attain the 20 GW national target by 2020. Developing grid connected renewable energy system is another huge challenge in the PRC. Only 72% of total wind capacity of PRC is connected to the grid due to power output variation being derived from intermittent nature of wind. Solar energy having similar fluctuated natural cycles over short time scale will also face output variation problem. Controlling power output variation effectively however remains a challenge for large scale grid integrated solar PV.

Qinghai province which is located in the north east of the Qinghai-Tibetan plateau in western part of the PRC has rich abundant mineral and natural resources, while its gross regional domestic product (GRDP) is the second lowest in all provinces in PRC. To enhance economic development utilizing rich mineral and natural resource endowments in environmentally sustainable manner, Qinghai provincial government has set a development agenda for promoting solar energy which supplies clean electricity to the load center in eastern part of the PRC and for developing solar PV related supply chain industry, utilizing more than 20GW solar power resource potential and rich silica resources in the province.

Qinghai province launched large scale grid connected solar PV development program in 2009. However, limited access to advanced technology solutions, lack of personnel experience in grid connected solar PV system design, limited incentive measures to expand large scale solar PV plant investment, has led to slower development of the solar power. The proposed TA aims at enhancing capacity on grid-connected solar PV system development in Qinghai, by (i) building solid planning, design, and management methodologies, (ii) introducing applicable advanced technologies (power conditioner technology including inverter and energy storage), (iii) providing technical guidance for 10 MW class pilot grid connected solar PV system design, and (iv) identifying cost barriers and mitigation measures.

Impact The impact of the TA will be accelerated deployment of grid-connected solar PV plants in Qinghai province.
Project Outcome
Description of Outcome Lowered capacity barriers in planning, design, and management of grid-connected solar PV development in Qinghai Province
Progress Toward Outcome To early to assess. The project is on-going, and is scheduled to be completed June 2012.
Implementation Progress
Description of Project Outputs

Seminars to introduce advanced technologies for grid-connected solar PV systems

Technical guidance note to strengthen capacity in planning, design, construction, and O&M of grid-connected solar PV system

Improved design of pilot 10 MW grid-connected solar PV power plant

Policy note and workshop to disseminate information about grid-connected solar PV system development to relevant provinces

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Status of Implementation Progress (Outputs, Activities, and Issues) The TA implementation has been on schedule to date. Inception workshop and seminor were held on 28 April 2011, study tour was completed in October 2011, and interim workshop and seminor were held on 7 December 2011. Submission of draft final report and final workshop will be in April 2012.
Geographical Location
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 The technical assistance (TA) will be implemented over a duration of 14 months. It requires 12 person-months of international and 32 person-months of national consulting services. The consulting firm (including international and local consultants) will be recruited by ADB in accordance with the Guidelines on the Use of Consultants (2007), as amended from time to time) through quality-and cost-base selection to provide the services for implementation, management, and progress monitoring of the TA.
Responsible ADB Officer Shigeru Yamamura
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Qinghai Provincial Finance Bureau30 Huanghe Road, Xining, Qinghai
Timetable
Concept Clearance 01 Sep 2010
Fact Finding 17 Sep 2010 to 20 Sep 2010
MRM -
Approval 10 Nov 2010
Last Review Mission -
Last PDS Update 12 Dec 2011

TA 7643-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2010 07 Dec 2010 07 Dec 2010 29 Feb 2012 31 Oct 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 200,000.00 140,000.00 0.00 0.00 0.00 840,000.00 10 Nov 2010 682,995.80
Title Document Type Document Date
Renewable Energy Development in Qinghai TA Completion Reports Mar 2014
Renewable Energy Development in Qinghai: Final Report Consultants' Reports Oct 2012
Renewable Energy Development in Qinghai Technical Assistance Reports Nov 2010

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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