People’s Republic of China: Guangdong Energy Efficiency and Environment Improvement Investment Program, Tranche 1

Guangdong was the largest and fastest-growing province in the People’s Republic of China (PRC), with gross domestic product growing at a rate of 14% per annum since 1995. Electricity consumption was dominated by energy-intensive industries such as cement, iron and steel, petrochemical, chemical, clay and porcelain, glass, paper and paper products, metals, and textiles, which represented 73% of total electricity use. The demand for power grew 13% annually since 1995, outpacing capacity addition. Thus, Guangdong experienced severe power shortages since 2002, with supply curtailed to many industrial consumers. The rapid increase in electricity demand also increased the reliance on imported energy, thus, affecting overall energy security in the country.

This report validates the completion report’s assessment of the project, which aimed to improve energy efficiency in the industrial and commercial sectors in Guangdong province in the People’s Republic of China. IED overall assessment: Successful.