|Status of Implementation Progress (Outputs, Activities, and Issues)
The Phase 1 was implemented from July to November 2013 and an innovative financing structure for leveraging social capital to complement limited government funds for financing low carbon development was prepared. This is now being considered for implementation by the Ningbo Municipal government.
The TA completion date was extended until 30 September 2015 to accomplish the work needed for the revised scope of Phase 2.
As a result of Phase 1, the LCDAP has identified, optimizing the energy consumption in the industrial sector, introducing innovative energy management practices, and encouraging distributed energy sources including renewable energy, as some of the key actions to be implemented. The government requested to focus on undertaking a feasibility study for deploying state-of-the-art energy management system to optimize the energy consumption in Ningbo High Tech Industrial Park (NHTIP) as a pilot project on low carbon urban distributed energy systems, and recommend the financing and implementation arrangements for the proposed energy management system for public-private partnership.
The Ningbo government, ADB and the consultants agreed on the scope and approach of the study at the inception workshop for Phase 2 held on 15 September 2014, which include (i) the feasibility of establishing a self-contained energy supply system to meet the electricity, heat, steam and cooling demand of the High Tech Park in an optimum manner, (ii) feasibility of establishing a mini grid within the High Tech Park with distributed CHP to meet the electricity and heating/cooling demand of the park with the Grid Company providing back-up supply, and (iii) identify institutional and regulatory barriers in establishing an integrated energy supply system and provide recommendations to overcome these barriers.
The current energy demand for electricity, heating and cooling in NHTP and the energy demand profile of the different types of consumers have been estimated. A detailed analysis of the performance of an existing natural gas powered CHP plant and steam supply network within the park has been undertaken. Due to the inadequate use of centralized heating and cooling systems, and suboptimal operation of the CHP plant due to inadequate steam demand and restriction on operation of the CHP plant at off peak times, it was proposed to increase the coverage and demand for centralized heating and cooling system by installing distributed CHP plants and lithium bromide absorption cooling units in key locations. The CHP plant objected to the proposal because (i) internal combustion engine based DCHP plants is not possible to be integrated in the existing steam supply network, and (ii) it intends to invest in CHP plants outside the NHTP to operate these CHP plants in an integrated manner to meet the steam demand of NHTP and the Eastern New Town Area. It was also identified that it is technically feasible to establish a microgrid to manage the electricity distribution system within the park.
The final workshop was held in June 2015. The study presented the analysis of the overall energy efficiency of Ningbo High-Tech Park (NHTP), including its major industries, buildings, and energy supply structure. It also determined the supply-side, and demand-side optimization measures and alternative solutions; assessed the feasibility of establishing a micro-grid and its energy management center; and evaluated the financial feasibility and the policy barriers of the proposed technical alternatives.
The main technical outcomes of the project include: (i) energy consumption survey and study on the opportunities of energy saving and peak regulation, including the different technical retrofitting measures, and non-technical measures to improve the energy efficiency; (ii) feasibility study of the application of distributed combined heat and power, comparing two combined heat and power alternative options (Option 1: expansion of the existing CHP capacity to improve its operating efficiency; and Option 2: introducing DCHP units in addition to the expansion of the existing CHP capacity, which identifies targeted cooling, heating, and electricity balance, operating hours, and total operating efficiency); (iii) feasibility study of distributed solar PV power generation; (iv) technical feasibility study of applying micro-grid concept and its energy management center, with recommendations; and (v) evaluation of the potential energy saving and carbon reduction of the overall technical solution.
On policy perspective, it recommended policy regime and incentives concerning the policy barriers to the implementation of the proposed technical solutions, particularly micro-grid establishment and energy performance contracting business model. Micro-grid establishment in the PRC is at immature stage of pilot testing and there are no national laws and regulations or administrative guidelines and standards are in place. The recommendations were: (i) to implement a pilot micro-grid project in NHTP, starting with the implementation of micro-grid concept energy management center; and (ii) financial and tax incentives were necessary to strengthen the regulatory mechanism to drive the development of EPC business model.