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Small Hydropower Contributes to Poverty Reduction and Rural Integrated Development in China

By Mark Foster,2014-07-13 02:09
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Small Hydropower Contributes to Poverty Reduction and Rural Integrated Development in China

Small Hydropower Contributes to Poverty

    Reduction and Rural Integrated

    Development in China

SHPinChina

    ;SmallHydropowerContributestoPovertyReductionandRural

    ;IntegratedDevelopmentinChina ;speechdeliveredatWorkshopon

     ;ModernEnergyServicesandjl,

    ;ertyReductionEastAsiaPhnom

    ;Penh,CombodiaMay4-6,2005.

    ;Prof.CHENGXIALEI,DeputyDirec- ;torofHRC(HangzhouRegional

    ;CentersiaPacificJforSmallHy

    ;droPower)

    ;1.BriefingofSmallHydro

    ;power(SHP)developmentand

    ;demandofpovertyreductions

    ;inChina

    ;_.

    ;overthepast50addyears,outstandingachievementshave ;beenmadeinthedevelopmentofru

    ;ralsmallhydropower(SHP)andelec

    ;trificationinChina.Bytheendof2003, ;42.22lSHPplantswithatotalinstalled ;capacityOf28.489MWhavebeen

    ;constructedandunderoperation. ;Halfofthecountry’sterritory.and

    ;onequarterofpopulationofthe ;wholenationarenowaccessibleto ;SHP.TheroleofSHPinthewhole

    ;hydropowerindustryandeveninthe ;wholeelectricitysectionhasbecome ;increasinglyindispensableasevi

    ;dentlyshowninthefollowingfigures: ;--

    ;PercentageofSliPcapacityin

    ;hydropowersection>30%.

;--

    ;PercentageofSHPcapacityin ;electricityindustry.about7%. ;Thesefiguresaremuchhigher ;thanthatoftheaveragevaluer5% ;CHENGXlALEl

    ;andl%respectively,oftheworld. ;Asauniquecaseintheworld,a ;newindependentSHPindustryhas ;beenformedinChina,combining ;economic,socialandenvironmental ;benefitforthewholeruralareaand ;contributeconsiderablytotherural ;developmentasawhole.

    ;AnothersalientfeatureofSHP ;developmentinChinaisthatnumer- ;OUSlocalgridshavebeenestablished ;eitheroperatingindependentlyorfur- ;therinter-connectedintothenational ;grids.Thescaleofthelocalgridis ;usually3080MWorevengreater

    ;thanl00MWwhereinter-countiesor ;transregionallocalgridshavebeen ;formed.BYnow.around68%OfSHP ;installedcapacityinChinaiscon

    ;nectedtolocalgrids.Thisfigurede

    ;pictsafullydifferentsituationwith ;otherdevelopingcountries. ;Withtheabovepeculiarityof ;China’sSHPdevelopmentinmind.1

    ;wouldtherebyexplainthecontribu

    ;tionofSHPtopovertyreductionin ;Chinabyseveralstageswithempha

    ;sisontheearlyl95060swhichseems

    ;tobemoresimilarwiththepresent ;situationofSHPdevelopmentinthe ;developingcountriesinEastAsia.Ex

    ;periencesandlessonsfromcloser ;situationsmaybemoreconduciveto ;ourneighborcountries.Thesewillbe ;giveninthenextsection.

    ;Referringpovertyreduction,it

    ;isimportanttoclarifythestandardof ;povertyandactualdemandofpov

;ertyreliefinthecountry.

    ;AsstatedbyChinesepresent

    ;premierWentJiabao,”Thereare900

    ;millionfarmersoutofthe1.3billion ;populationinChina,ofwhom,30mil

    ;lionstillhavenotliftedoutofpoverty, ;withanannualincomeof625Yuan ;(RMB1percapita.Thepoorpopula

    ;tionwouldberaisedt090millionif ;200Yuanpercapitashouldbeadded ;tothestandard.’’Accordingtothe

    ;UN’sMillenniumDevelopmentGoals.

    ;thestandardforpoorestpeople’sin—

    ;comeislessthan$lUSDperday.or ;$365USD/year,whichisequivalent ;to1.095YuanifintemationalUSDrate ;l:3isadoptedforcalculation.Thel1. ;thepoorpopulationinChinawould ;beincreasedto145million.?ether

    ;145millionor30millionistobetaken ;incountingpovertyreduction ;committement,thetasksofwhichare ;allverytough.

    ;Althoughgreatachievement

    ;hasbeenmadeintheruralelectrifica- ;tionworkinChina,theelectricitycon- ;sumptioninruralareaisonlyabout ;500kWh/capita/yearbyendof2000. ;stillfarbelowthatofurbanarea.and ;lessthanhalfofthenation’saverage.

    ;Furthermore,byendof2000,thereare ;still30millionpeopleinthewhole ;nationnotaccessibletoelectricity, ;inspiteofthe98.03%highaccessi. ;bilityofelectricityfortheruralhouse. ;holdinthecountry.Theabovefig. ;uresshowthatenergypovertyalso

    ;existsinChina.especiallyintherural ;area.

    ;2.ContributionofSHPservice ;indifferentstagesofruralde

    ;velopmentinChina

    ;SHPserviceinChinahasbeendevelopedinstepwith

    ;nation’soverall,especiallyrural

;area’s

    ;,

    ;socialandeconomicprogress ;duringthepast5decades.

    ;(1)Inearly1950s,SHPconstruc

    ;tionstartedonabackwardeconomic ;andtechnicalbasiswithatotalSHP ;2www.hrcshp.orgsHPNEwsSummer2oo5 ;

    ;SHPinChina

    ;installedcapacityofabout6,000kW ;inthewholecountry.Themaincon. ;sumptionofelectricityisfordomes. ;ticlightingandprimaryagro-based ;productprocessing.Thestrategyof ;SHPdevelopmentadoptedatthat ;timewas”togettheballrollingfirst.

    ;andproceedonwithtwosteps,”that

    ;is.firstlysetuphydromechanicalsta. ;tionwithsimpleequipmentandtech- ;nologyforwaterpumpingandrice- ;processing.Then,expandedandup- ;gradedittotheelectricpowerstation ;afterfundraisingfromtheincomeof ;theoriginalstation.Othermeasures ;inadditiontotheabove”two.step”

    ;strategyinclude:

    ;

    ;Sengtheningtechnicalguid- ;anceandon.sitetrainingoflocal ;people;

    ;

    ;Runningthestationindustri. ;ouslyandthriftly;

    ;--

    ;Requestingplanningfor

    ;development;

    ;---

    ;Consolidatingmanagementof ;SHPstations.

    ;TakeSichuanProvinceas

    ;example,bothhydro.mechanicaland ;electricalpowerstationsweredeve1. ;opedsimultaneouslyduring1957.65.

    ;TheaverageinstalledcapacityofSHP ;stationinthewholenationin1950s ;wasonly26.9kW.

    ;ThecOntributiOnofSHPser.

    ;viceduring1950s.1960swasmainly ;forliberationoflaborforceandim. ;Provementofa2rolabor

    ;productivity.Asperstatisticsofthat ;period,5-laborforcecouldbereplaced ;by1kwelectriccapacityinpumping ;irrigationandagro-productof ;processing.Theunitareaproduction ;inZhejiangprovincewasdoubled ;afterbeingirrigatedfromelectric ;pumpingstations.Forconstruction ;OfSHPstations.theinputoflabor ;forcewasabout200perkWinstalla. ;tionwhiletheannualoutOutofeach ;kWcouldreplaceabout1500.1abor. ;dayThisisevidentlymuchiustified ;economically.

    ;Thecontributionofelectricity ;supplyfromSHPduringthisperiod ;couldbesimplifiedinthefollowing ;roadmap:

    ;LiberationoflaborbySHP

    ;Furtheringdevelopmentoflocalelec. ;tricsupply....——Furthertransferenceof ;surpluslabortononagrosectors.

    ;Onthebasisofinitialdevelop. ;mentOfSHPinmanyplaces.aSHP. ;programcalled”preliminaryelectrifi-

    ;cationfor5countv/100commune.’’

    ;inaprovincewaslaunchedin1958. ;withalowstandardOf100.150Wper ;householdforeasyachievement.By ;endof1959.numberofSHPstations ;andtotalcapacityinthecountrywere ;greatlyraisedfrom562/20200kWin ;1957to5.586/150.000kW.

    ;(2)Inearly1960s,forstrength- ;eningtheagriculturalproductionin ;thecountry.thecentralgovemment ;setupthepolicyofestablishing

    ;stableandhighgrainproductionsys- ;temsbyconstructionofanumberof ;basegroundforgrainandco~on.For ;servingthispurpose,thenational ;ruralelectricsupplyshouldcomply ;withthefollowingstrategy:”Focus

    ;oncommercialgrainandcotton ;bases,withelectricservicemainlyfor ;irrigationanddrainage,mostlysup

    ;pliedbythenationalgridcombined ;withruralSHP”.

    ;Thus.froml969.73.theannual ;growthofnewSHPinstallationSUC. ;cessivelykeptat50,000kW/year. ;Then,thegrowthrateconsecu- ;tivelyincreasedasshowninthe ;followings:

    ;400,000kW/yearforearly1970s ;80000kW/yearforlate1970s ;1.000,000kW/yearfor1979

    ;Byend1979.thetotalnumber ;andcapacityofSHPinChinajumped ;into80.000and6.38millionkW. ;Inthemeantime.1ocalgridof ;SHPwasgraduallyformed,whichnot ;onlysuppliedelectricitylocally,but ;alsosentelectricityintothenational ;grid.

    ;TheapproachOfSHP-REand

    ;economicdevelopmentinthepast ;severaldecadeswassummarizedby ;thelocalpeopleintothefollowing ;formula:

    ;

    ;Waterforelectricity.

    ;

    ;Electricitypromotesindustry ;andagriculture.

    ;

    ;Industrybacksupelectricity. ;

    ;“TOgetthehillyregions

    ;changed,buildsmallhydropower ;ahead.’’

;Thatisasoundcyclewayof

    ;development.

    ;Thestructureofelectricityde. ;mandorcompositionofruralelectric. ;1tyconsumptionatvariousstages ;variesconsiderably,whichcouldbe ;roughlycategorizedasfollows: ;Percentageofvariousload(%) ;PefiodIrrigation&Agro/sidelineTownshipHousehol

    ;Others1’otal

    ;DrainageprocessingIndustrydLighting ;1960s652510100

    ;1970s41.822.915.819.8100

    ;198085233820-2319.3217214.1_4.5100 ;1989l9.813.738.917.99.7100 ;1990s9_313.744.723.38.8100 ;20oO7.712.044.227.09.1100 ;20017.111.442.3309.2100

    ;sHPNEwsSummer2005WWW.hrcshp.org3 ;

    ;SHPinChina

    ;Itisevidentthattheloadofirri

    ;gation/drainageandagroprocessing

    ;droppedsharplyduringthepast50 ;yearswhilethetownshipindustry

    ;andhouseholdlightinggrewquickly ;inthesameperiod.

    ;(3)Duringtheperiodof1980s

    ;1990s,SHPservicewasmainlyfor ;povertyreliefinpoorareas. ;TheStateCouncilinitiatedthe ;programofSHPbasedruralelectrifi

    ;cation(SHPRE)sinceearlyl980s.

    ;requestingforestablishmentof653 ;“SHP—RE”countiesoverl8yearsup

    ;totheendof20century.82%ofthe ;countiesarelocatedincentraland ;westpartofChina,whichcover252 ;millionpeopleand2.74millionsq.km. ;wherethe~conomicdevelopment ;wasbackwardtothenation’s

    ;average.Completionoftheprogram ;enablestheabovecountiestoattain ;agreatachievementasillusatedby

;thefollowingfigures:

    ;GDPvalue.risealincome.farm

    ;ers’netincomepercapitaandelec—

    ;tricityconsumptionpercapitawere ;alldoubledoverthepast5yearsand ;quadrupledoverthepast10years. ;Thegrowthrateswereallmuchhigher ;thanthenation’saverage.

    ;TheSHPservicefurtherplayed ;onimportantroleinthepoverty??re?? ;ductionandsocio..economicdeve1.. ;opmentofbroadremote,oldrevolu

    ;tionaryandminorethnicpoorhilly

    ;areaS.

    ;(4)Afterenteringthe21

    ;century,SHPisusedmainlyforpro

    ;tectingandimprovingecologicalen

    ;vironmentandboostingthelocal ;economy-

    ;Startedfromthisperiod,the ;Centralgovernmenthaspaidgreat ;importancetopovertyreduction,en

    ;vironmentprotectionandrealization ;ofharmoniousdevelopmentbetween ;humanbeingsandnatureaswel1. ;SHP.wimitspromptandevidentef- ;fectofimprovingfarmer’sincome.has

    ;beendocumentedasimportantme

    ;diumandsmallinfrastructureinthe ;ruralareabythecentralGovernment ;in2002and2003.TwolargescaleSHP

    ;program:thepioneerprojectofusing ;SHPinreplacingfirewoodandcon

    ;structionofthe4batchofSHP.RE ;400countieswerefurtherinitiated. ;80%ofthe400countiesarelocated ;incentralandwestpartofChinaand ;85%ofthemareinhilly.poorareas. ;Thisprogramisaimingatconstrue

    ;tionofhigherlevelofruralelectrified ;countiescomplyingwimthedemand ;ofwelloffsocietyandimprovedeco

    ;logicalenvironmentaswellasover- ;allsocialandeconomicdevelopment

    ;intheruralarea.TheSHPreplacing ;firewoodprogramwilltakel4ormore ;yearstosolvethelongtermstable

    ;supplyoflivingfuelandruralenergy ;demandfor28millionhouseholds ;wiml04millionpeopleinthewhole ;country.Furtherdetailswillbede

    ;scribedinsection4ofthispaper. ;Bangkokonl990that:”Energy

    ;(includingelectricity)isonlyoneele? ;mentofaneffectiveintegratedrural ;developmentstrategy.Withavailabil

    ;it,,ofelectricityinanunder-devel

    ;opedruralarea,furtherinputisneeded ;forsettingupagricultural,industrial ;andcultural,educationalendusers,

    ;o?lerwise.theactualimpactsofelec. ;tricitywouldbelimitedorhampered.”

    ;InChina.thisiscalled”simultaneous

    ;developmentofenergywithlocalin

    ;dustryandagriculture.”Thesuccess—

    ;fulimplementationofmisstrategyin ;Chinausuallyattributestothefollow. ;ingfactors:

    ;fl1Unifiedleadershipandco

    ;ordinationoflocalgovernmentUSU

    ;a1lvatcountylevelwasi’ns1.sted(there

    ;areabout2,400countiesinChinaas ;abasicadministrativesetup).Ineach ;SHPREcounty.aleadinggroupwas ;usuallyestablishedheadedbya ;countymayororhisdeputy.Any ;typeofownershipforSHPdevelop

    ;mentwasputundercoordinationof

    ;theleadinggroupformultisectoral

    ;development.Thismeasuregreatly ;ItshouldbenotedthattheconovercamethebarriersofbothSHP

    ;tributionofSHPserviceindifferent ;stagesweredifferent.Takingrefer

    ;enceoftheaboveexperience,corre

    ;spondingstageshouldbeselected ;foreffectivenessoftheexperience. ;3.1ntegrationofSHPconstruc- ;tionwithcomprehensiveeco-

;nomicandsocialdevelopment

    ;SHPdevelopmentinChinahasalwaysbeenintegratedwith

    ;overalleconomicandsocialdevelop

    ;mentintheFuralareanotwithstand

    ;ingdifferencesofvariousstagesof ;SHPdevelopment.China’sexperi—

    ;enceinthisrespectfurtherprovesthe ;significanceofthestatementraised ;intheReport(LinkingRuralElec

    ;trificationwithRuralDevelopmentin ;Asia))publishedbyUN.ESCAP, ;andoverallruraldevelopmentnot ;onlyfinancially,technicallybutalso ;forallissuesrelatedtoregulatoryand ;policyarena.

    ;f2)Withamasterplanforthe

    ;wholecountydevelopment.1oadfore

    ;castforSHP-REwasnotonlyapredi

    ;cationbutalsoapartofintegralplan ;oftheoveralldevelopmentofthe ;county.Thusthemarketproblemwas ;nomoreconstraintstotheSHP

    ;development.

    ;f31SHPdevelopmentincon

    ;1unctionwithirrigationanddrainage ;offahnlandinearly1950s.Later,since ;1980s,thetown.shipindustryhas ;boomedtremendously,especiallyin ;coastalprovinces,wheretheannual ;increaseratewaskeptat1520%or

    ;sHPNEWsSummer2QQs

    ;

    ;SHPinChina

    ;evenhigheroverthepast2.3

    ;decades.Aserious.shortageofelec. ;tricitysupplybothinurban,peri-ur- ;banandruralareahasthusbeen ;emergedinthelongrun.notwith. ;standingofthehighgrowthrateof7- ;l0%ofthepowergenerationsector. ;Therefore.electricmarkethaspersis. ;tentlybeenkeptonthesellerside, ;whichstronglypromotedtheSHP ;developmenttogetherwithrapideco.

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