China, People's Republic of : National Biomass Heat Supply Development Strategy

Energy / Renewable energy generation - biomass and waste

The proposed technical assistance (TA) aims to assist in developing a clear strategy, policy framework and specific measures to advance the commercialization of untapped biomass-based heat sources in the PRC. It will conduct an in-depth assessment of the current biomass-to-heat market in the People's Republic of China (PRC), in general; and will identify the different challenges and opportunities for a successful commercialization faced by the entire chain of a biomass-to-heat system, in particular. The TA also includes the production of a sourcebook on biomass-to-heat commercialization to broaden the knowledge dissemination on worldwide biomass-to-heat technology advancement and valuable lessons from international experiences on biomass-to-heat markets and systems. International workshops, conferences, and technical trainings will provide opportunities for key stakeholders to gain hands-on learning experiences from international and domestic technical and policy experts on biomass-to-heat chains.

Based on all these elements, the TA will prepare a policy note that formulates the national strategy to advance biomass-to-heat commercialization in the PRC. This policy note will discuss broad policy objectives, realistic mid- and long-term targets of biomass share in the heating sector, and quantified greenhouse gas emissions reduction associated with these targets. It will also detail (i) the proposals of technical standards for various forms of biomass-based heat sources in commercialization; (ii) adequate subsidy schemes; (ii) biomass collection policies; (iv) environmental standards for various biomass-heat generation technologies and equipment; and (v) research and development as well as technology transfer support to advance biomass-to-heat technologies domestically.

Providing heating to the population residing in the northern part of the PRC has posed a challenge to the low-carbon development, an important component of the PRC's ecological civilization process. The municipal governments of major cities address this challenge by banning the use of coal for heating in order to mitigate poor air quality and encourage the use of low-carbon and renewable energy sources. Yet, many institutional and financial barriers exist for clean and renewable heat sources to compete with cheap and abundant coal. The Government of the PRC therefore aims to create enabling policy and market conditions for renewable energy sources. One of the most promising and widely available renewable resources is biomass. Other renewable energy sources such as photovoltaic, water, and wind are already gradually adopted in the PRC's energy system, whereas biomass remains underexploited despite its potential to replace significant amounts of coal-based heating.

The PRC's forestry waste for biomass production potential is at about 300 million metric tons (MT)/year, that for animal waste between 135,170 million MT/year, and of the 179 million MT/year of municipal solid waste, about 60% is organic waste. The agricultural sector can supply about 250 million MT/year of crop residues for biomass-based energy production provided the prices for such residues are attractive enough.

In the European Union, the technological leader in biomass energy, almost half of the 2014 renewable energy consumption came from biomass. Germany, France, and Sweden are the leader in biomass-to-heat systems. With a turnover of close to 42 billion (est. $47 billion) in 2013 and employing 380,200 people of which many are in rural areas, the European biomass and biogas sectors are providing a good example for successful commercialization. Yet, current biomass utilization in the PRC is mostly small household- and/or community-based and lacks a supportive institutional framework that could boost its commercialization to reach its full potential. Weak enforcement of environmental standards, including restrictions on crop residue burning by farmers that causes extreme air pollution each year after harvesting season, is reducing the opportunities to turn particularly agricultural waste into renewable energy. To exploit the existing opportunities, the PRC needs to improve its regulatory system, develop clear industry standards, tap into foreign expertise on biomass and close its technological gaps, specifically on biomass combined heat and power, biomass pellet boiler, biogas digestion and purification, and biomass gasification.

The National Energy Administration plans to support commercialization of biomass by simultaneously designing an adequate policy framework and taking measures to support the biomass technology enhancement. Reiterating the importance of these efforts, the Suggestions of the CPC Central Committee on the 13th Five-Year Plan for National Economic and Social Development included, under the Green Development and Ecological Environment Improvement section, the accelerated development of biomass as one of the energy sources supporting the country's low-carbon and circular economy targets, while also putting an increased emphasis on waste including organic waste-treatment and usage.

Study on the current biomass-to-heat market in the PRC prepared

Sourcebook on advanced biomass-to-heat technologies, institutions, and international best practices on biomass-to-heat commercialization produced

Capacity strengthening on biomass-to-heat commercialization implemented

Policy note on the PRC's strategy to advance biomass-to-heat commercialization developed

The proposed TA will engage a consulting firm consisting of four international consultants (5 person-months), and four national consultants (31 person-months) with expertise in biomass-to-heat policy, biogas and biomethane technology, gasification technology, biomass molding fuel boiler technology, waste management and policy research, and environmental engineering.

The consulting firm will be engaged in accordance with Asian Development Bank's Guidelines on the Use of Consultants (2013 as amended from time to time), using the quality- and cost-based selection method with a quality-cost ratio of 90:10 by requiring the submission of a simplified technical proposal covering all aspects of the terms of reference.