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GANSU RURAL CLEAN ENERGY DEVELOPMENT PROJECT (Financed by the Government of Denmark)

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GANSU RURAL CLEAN ENERGY DEVELOPMENT PROJECT (Financed by the Government of Denmark) Technical Assistance Consultant’s Report Project Number: 40635 April 2009 PEOPLE'S REPUBLIC OF CHINA: GANSU RURAL CLEAN ENERGY DEVELOPMENT PROJECT (Financed by the Government of Denmark) Prepared by: Beijing BJT Consulting Ltd. In association with IT Power Ltd. and Tripod Wind Energy ApS People's Republic of China For Gansu Provincial Government (Executing Agency) This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. PEOPLE’S REPUBLIC OF CHINA ASIAN DEVELOPMENT BANK TA NO. 4935 –PRC GANSU RURAL CLEAN ENERGY DEVELOPMENT PROJECT _________________ Final Report April 2009 Beijing BJT Consulting Ltd. in association with IT Power Ltd. and Tripod Wind Energy ApS April 2009 Gansu Rural Clean Energy Development Final Report Asian Development Bank (ADB) Final Report for GANSU RURAL CLEAN ENERGY DEVELOPMENT PROJECT Client contract No.: TA 4935 -PRC Final April 2009 Contractor: BEIJING BJT CONSULTING LTD 1-202, Building 3, Baizhifang Dongjie, Bejing 100054, P.R. China Tel: +86 10 6355 4694 Fax: +86 10 6357 0904 E-mail: [email protected] http://www.bjt.com.cn Document control File path & name C:\Documents and Settings\rebeccag\My Documents\1016 Gansu RE project\2 Work\final report\Gansu Final reportv1.0.doc Authors Rebecca Gunning, Hu Jicai, Zhu Chao, Zhou Wei, Soren Gjerding, Gu Shuhua, Min Deqing, Wei Songxian, Zhao Lixin, Li Jingming, Pei Xiaodong Project Manager Rebecca Gunning (Team Leader for TA) Approved RG Date May 2009 Distribution level Not for distribution / Public Domain ITP/1016 April 2009 Gansu Rural Clean Energy Development Final Report KNOWLEDGE SUMMARY This project aimed to increase the use of clean energy in rural areas of Gansu through enhanced capacity in planning and management of clean energy development in the province. Energy resource maps have been produced for biomass, wind and small hydro power across Gansu province. The results show that there is abundant solar resource in Gansu and a good hydropower resource in selected areas. The wind resource is particularly good and Gansu is rated fifth in terms of potential in China. Large scale biomass combustion plants in Gansu are limited by the resource and competing uses for the resource. However there is sufficient biomass resource for numerous smaller biogas and gasification plants across Gansu. Wind development in Gansu has a number of strengths in addition to its resource due to easy development conditions, land availability, government support and local equipment manufacturing. However there are still barriers to its development including limits due to the incomplete 750 kV transmission to export the power, high voltage losses, limits in the transport system and in the grid stability. A Renewable Energy Development Plan (REDP) has been prepared for Gansu covering biomass and wind power. The aim of the REDP is to provide key recommendations to the GPG for the 12th Five Year Plan up to 2015. The REDP includes the resource assessment and a status of rural energy development in Gasu as well as providing an analysis of future rural energy demand. The development, distribution and scale for the biomass and wind power are then set out with an associated investment analysis. A list of priority projects for development is included and socio-economic and environmental assessment is included. Targets for each of the technologies for 2015 are outlined and key measures for implementation are described. A list of biomass priority projects has been compiled around Gansu. Almost all these projects are medium scale biogas projects with a few stalk gasification projects. Pre- feasibility studies have been completed for the top two projects. A list of wind projects was identified. Two wind measurement masts were erected to improve the micro-siting (higher AEP) and to decrease the uncertainty of the wind study. A pre-feasibility study for the 49.5 MW Dong Le farm was carried out. The Annual Energy Production (AEP) has been estimated at 78.4 GWh/year which is lower than expected due to uncertainty because of a short wind measuring period and no long term information. Two pilot biogas projects were implemented. Both projects are small scale biogas projects, one at Huachi Ecological secondary school and the second at Tianshui dairy farm including electricity generation. The projects have been evaluated and shown to have had a beneficial impact on the environment and to result in savings. Both projects have wide-scale replication potential across Gansu. A publicity campaign and capacity strengthening was undertaken. A website of Gansu Rural Energy Information has been developed (http://wlgc.gsny.gov.cn/gsnyxxw/), as well as the preparation of a policy handbook for renewable energy development, information dissemination books and video CDs and training workshops to improve their understanding of technology. ITP/1016 April 2009 Gansu Rural Clean Energy Development Final Report TABLE OF CONTENTS 1 Introduction ..................................................................................................... 7 2 Summary of Work Undertaken........................................................................... 7 2.1 Project tasks and deliverables ................................................................. 7 2.2 Summary of missions to Gansu by Experts............................................... 8 3 Resource Assessment........................................................................................ 10 4 Review of Renewable Energy initiatives and previous studies............................... 10 5 Renewable Energy Development Plan for Gansu ................................................. 11 6 Pilot Projects .................................................................................................... 13 6.1 Tian Shui Dairy Farm biogas power generation ........................................ 13 6.2 Hua Chi No. 2 Middle School biogas ........................................................ 15 7 Wind Component .............................................................................................. 16 7.1 Supply and Installation of Wind Measuring Masts ..................................... 16 7.2 Mast Inspection ..................................................................................... 16 7.3 Pre-feasibility Study of Dong Le .............................................................. 17 7.4 CDM revenue of wind power priority projects........................................... 18 8 Biomass Priority Projects ................................................................................... 19 8.1 Selection Criteria for Priority Project for ADB TA 4935 PRC........................ 19 8.2 List of Priority Project for ADB TA PRC 40637........................................... 20 8.3 Feasibility studies for priority projects...................................................... 24 8.3.1 Stalk Gasification Project at Shexin Village, Yinda Town, Suzhou District, Jiuquan City ...................................................................... 24 8.3.2 Yuanbo Biogas Power Engineering in Ganzhou District, Zhangye City............................................................................................... 25 8.4 CDM Financing Evaluation for Biomass Priority Projects ............................ 26 9 Dissemination Activities..................................................................................... 27 9.1 Publicity Campaign................................................................................. 27 9.2 Training................................................................................................. 27 9.3 Study Tours........................................................................................... 28 9.3.1 Domestic Study Tour ................................................................... 28 9.3.2 International Study Tour.............................................................. 28 ITP/1016 3 April 2009 Gansu Rural Clean Energy Development Final Report ANNEXES Annex 1: List of meetings since Interim Report Annex 2: Gansu Renewable Energy Development Plan (as separate document) Annex 3: Tianshui AoNiu Dairy Biogas pilot project feasibility and evaluation report (as separate document) Annex 4: Huachi No. 2 Middle school biogas pilot project feasibility and evaluation report (as separate document) Annex 5: Shandan Wind Data Analysis and Pre-feasibility study (as separate document) Annex 6: Biomass priority feasibility reports (as separate document) Annex 7: CDM potential of priority projects Annex 8: Dissemination Material (as separate documents) Annex 9 : Study tours : National and International ITP/1016 4 April 2009 Gansu Rural Clean Energy Development Final Report ABBREVIATIONS ADB Asian Development Bank BJT Beijing BJT Consulting Ltd CDM Clean Development Mechanism CER Certified Emission Reductions DRC Development and Reform Commission EA Executing agency EE Energy Efficiency EIA Environment Impact Assessment EIRR Economic Internal Rate of Return FIRR Financial Internal Rate of Return FNPV Financial Net Present Value GEF Global Environment Facility GHG Greenhouse gases GPG Gansu Provincial Government GPDAAH Gansu Province Department of Agriculture and Animal Husbandry IA Implementing agency NEHH Non-electrified households PMO Project Management Office
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