Case study 9 China’s minigrids for rural electrification
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Case study 9
China’s mini-grids
for rural
electrification
Township Electrification
Programme
Problem
In
2008, there were still an estimated two
million households, or nine to ten million
people, primarily in villages and farming areas
in western China, lacking electricity, according
to the National Energy Administration
How to solve?
Township Electrification Programme
From 2001 to 2005
100% renewable energy system for village
power
688 villages: PV-battery mini-grids
337 villages: small-scale hydro mini-grids
Expand to 20,000 villages in 11 provinces
Results
Increased electricity access in
western provinces: provide electricity
to 1.3 million people
Electricity for basis services but not
productive uses: improve quality of
life and economic development
Stimulated solar PV production
A PV module in rural
area in China
Lesson learned
A site-specific costbenefit analysis is
required
Tibetan home with 20-watt PV
panel and 500-watt wind turbine
Success factors
Public financing: US$ 293 million from central
government and US$ 437 million from provincial
government
Government-led implementing: National
Development and Reform Commission (NDRC)
Site assessment of energy resources: high solar
insolation, good wind speeds, biomass resource
Preference for local production: System
integrators responsible for design, installation,
operation, maintenance
Focus on capacity building: US$ 100 million
for training and institutional development.
Considerations for replicating
Ability to pay: gauge the ability, willingness and
reliability of customers to make payments to
cover operation costs
Supply and demand balancing: Pricing too low
could lead to excessive demand whereas pricing
too high could lead to non-use.
Operations and maintenance know-how: local
technicians capable or operating and maintaining
the mini-grids to maximize efficiency
