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Technical Assistance Consultant's Report People's Technical Assistance Consultant‘s Report Project Number: 46472 November 2014 People‘s Republic of China: .trengthening Capacity for Implementing the New 0nergy City Program in Gansu Province Prepared by C0C0P Consulting Co., 1td. Beijing, People‘s Republic of China For Gansu Provincial Government 2unicipal governments of Dunhuang and 3uwei cities 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. FINAL REPORT Strengthening Capacity for Implementing New Energy City Program in Gansu Province ADB TA 8246-PRC Submitted by CECEP Consulting Co., Ltd October 2014 TABLE OF CONTENTS I Executive Summary ............................................................................................... 1 II International Experiences of New Energy City Programs................................. 10 A. European Energy Award (EEA) ......................................................................................... 10 B. Core Statements of EEA ..................................................................................................... 10 C. The Quality Management of EEA ...................................................................................... 11 III Current Progress of National New Energy City Program................................ 18 A. Policy Support for National New Energy City Program .................................................... 18 B. Updated Situation of National New Energy City Program................................................. 21 Dunhuang City ........................................................................................................... 17 IV Effectiveness of Implementing CNEDP in Dunhuang City .............................. 22 A. Overview of CNEDP .......................................................................................................... 22 B. Technical Analysis of NECDP ........................................................................................... 23 C. Summary of CNEDP Implementing Progress in Dunhuang............................................... 35 V Financing Analysis of CNEDP in Dunhuang City ............................................... 38 A. Budgeting and Financing Gap Analysis for Key Projects in CNEDP of Dunhuang .......... 38 B. Summary of Financing Gaps in Dunhuang ........................................................................ 46 VI Due Diligence of Priority Project in Dunhuang City ........................................ 48 A. Identification of Priority Project in Dunhuang City ........................................................... 48 B. CSP-CHP Development at Home and Abroad ................................................................... 49 C. Technical Assessment of CSP-CHP Project ....................................................................... 53 D. Financial Assessment of CSP-CHP Project ........................................................................ 61 VII Pilot Project in Dunhuang City ......................................................................... 71 Wuwei City ................................................................................................................. 68 VIII Effectiveness of Implementing CNEDP in Wuwei City ................................. 73 A. Overview of CNEDP .......................................................................................................... 73 B. Technical Analysis of CNEDP ........................................................................................... 75 C. Summary of CNEDP Implementing Progress in Wuwei .................................................... 83 IX Financing Analysis of CNEDP in Wuwei City ................................................... 86 A. Budgeting and Financing Gap Analysis for Key Projects in CNEDP of Wuwei ............... 86 B. Summary of Financing Gaps in Wuwei .............................................................................. 92 X Due Diligence of Priority Project in Wuwei City ................................................ 93 A. Identification of Priority Project in Wuwei City ................................................................ 93 B. Solar PV Development in the PRC .................................................................................... 94 C. Priority Project of Component 1 –Gulang Xinmiao 20MW Distributed Solar PV Power Generation Project ................................................................................................................... 96 D. Priority Project of Component 2–Kuangou Industrial Park 6MW Distributed Solar PV Power Generation Project ..................................................................................................... 105 E. Risk Analysis of Priority Projects in Wuwei .................................................................... 112 XI Pilot Project in Wuwei City ............................................................................... 114 XII Strengthening Capacity on Implementing CNEDPs in Gansu Province .. 115 A. Capacity Building Activities ......................................................................................... 115 B. Proposed Financing Modalities and Instruments .............................................................. 121 C. Administrative Management and Policy Support ............................................................. 129 XIII Conclusions and Outlook ............................................................................. 136 Appendices ................................................................................................................ 139 Appendix 1. International Case Studies of Micro Grid ......................................................... 139 Appendix 2. Evaluation Indices System of National New Energy Cities ............................. 143 Appendix 3. List of Budgeting Key New Energy Projects in Dunhuang (2013-2015) ......... 145 Appendix 4. List of Budgeting Key New Energy Projects in Wuwei (2013-2015) .............. 148 Appendix 5. Report of Study Tour to Europe........................................................................ 152 Appendix 6. Report of Study Tour to Jiangsu Province ........................................................ 160 Appendix 7. List of Reference .............................................................................................. 164 LIST OF FIGURES Fig. 1 TA Project Location Map ................................................................................................ 1 Fig. 2 Countries Participating in the European Energy Award ................................................ 10 Fig. 3 Management Process of the European Energy Award .................................................. 11 Fig. 4 Key Areas of the European Energy Award ................................................................... 13 Fig. 5 Micro Grid System Diagram ......................................................................................... 24 Fig. 6 Global Distribution of Micro Grid Projects (MW) ....................................................... 25 Fig. 7 Distribution of Micro Grid Pilot Projects in the PRC ................................................... 26 Fig. 8 Schematic Diagram of the Micro-Grid Project in Dunhuang Culture Industrial Park .. 28 Fig. 9 Funding Allocation of Key Projects in CNEDP of Dunhuang ...................................... 40 Fig. 10 Sources of the Public Expenditure in Dunhuang City ................................................ 41 Fig. 11 Comparison of Local Fiscal Budget for Key Projects and Total Budgeting Fiscal Receipts ........................................................................................................................... 42 Fig. 12 Trough CSP: Valle 1 & Valle 1, Spain ........................................................................ 49 Fig. 13 Tower CSP: PS10 & PS20 and GemaSolar, Spain...................................................... 50 Fig. 14 Stirling Dish CSP: Maricopa, U.S.A .......................................................................... 50 Fig. 15 Fresnel Linear CSP: Puerto Errado 2, Spain ............................................................... 50 Fig. 16 The share of CSP installed capacity in the world (March 2013) ................................ 51 Fig. 17 Schematic Diagram of Duhuang CSP-CHP Project .................................................... 53 Fig. 18 Schematic Diagram of Grid Connection ..................................................................... 59 Fig. 19 Desert Ecological Solar PV Power Plant in Wuwei .................................................... 78 Fig. 20 Solar BIPV Project in Energy Service Plaza of Wuwei .............................................. 79 Fig. 21 Funding Allocation of Key Projects in CNEDP of Wuwei ......................................... 87 Fig. 22 Sources of the Public Expenditure in Wuwei City ...................................................... 88 Fig. 23 Location of two component priority projects in Wuwei city ...................................... 94 Fig. 24 PPP structure of priority project of component 1 ...................................................... 104 Fig. 25 Project Organization Arrangement ..........................................................................
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