Evaluating renewable energy-based rural electrification program in western China: Emerging problems and possible scenarios

Sustainable Development of Renewable Energy Mini-grids for Energy Access: A Framework for Policy Design

“…Further the study observed that the rural electrification program lacked a comprehensive quality management, especially commissioning checks and supervision [22].…”

“…In 2001, the Chinese central government initiated the Township Electrification Program (Song Dian Dao Xiang) with a target of electrifying 1000 townships (approximately 1 million people). In 3 years, 377 villages were electrified using small hydropower (264 MW) and 688 villages with PV and PV-wind hybrid mini-grids (20 MWp), making it one of the biggest decentralized generation programs implemented [22].…”

“…While the central government paid for the capital expenses, contractors were obligated to provide operations and maintenance services for three years. However, the ownership of the systems seemed to be an open question, especially after the initial contracts ended, which may jeopardize the sustainability of the systems over time [20], [22]. At the same time, the importance placed by the Chinese government on rural electrification may have resulted in another institutional framework to be put in place for the management of the mini-grid systems.…”

“…Under the Township Electrification Program, the Chinese central and local governments paid for all the capital expenses and some of the O&M expenses of mini-grids [22]. In India, the Ministry of New and Renewable Energy, under the remote village electrification program, offers capital subsidies for solar PV, micro-hydro and biomass gasifier mini-grid systems that are up to 90% of their respective benchmark prices.…”

“…In China, small hydropower producers benefit from both a lower value-added tax and income taxes that are either lowered or forfeited altogether [20]. Most of the funding comes from government sources, international donors, and district and county contributions, while the local communities, considering their low income levels, are expected to pay only a small remaining portion, if any [22].…”