Project Inception

Project Objectives

Project Strategy

Project Activities

Project Implementation

Project Financing

Cooperation with Other Internationally Supported Initiatives

 

 

 

 

 

 


Project Inception    

      Despite the huge potential for renewable energy to play a key role in sustainable development for China, there remain a number of challenges limiting the expansion of renewable energy markets under prevailing conditions. These challenges can be broadly grouped into institutional, technical, and policy issues. In many cases targeted capacity building and technical assistance activities can have a significant effect in lowering these barriers and hence are valuable tools for promoting renewable energy commercialization. The present SETC UNDP/GEF project addresses a number of critical capacity building and technical assistance needs for accelerating the commercialization of renewable energy in China.


 

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Project Objectives    

To develop national capacity for identifying, developing and implementing commercial renewable energy projects and to assist in accelerating the commercial adoption of these technologies.

  

To lower existing technical, institutional and policy barriers to the commercialization of market-ready renewable energy technologies. 


 

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Project Strategy    

      The Project is grounded in a market sector approach, focussing on a limited number of key renewable energy technology applications. A programme of capacity building, technical assistance, and technology transfer activities will develop national capacity to realize the potential of market-ready technology applications. Coupling broad capacity building initiatives with work in specific market sectors allows the Project to address the challenges facing the more widespread adoption of renewable energy in China, while at the same time resulting in direct and measurable impacts.  The Project will also contribute to the development of national policies for renewable energy development, through its own activities and in cooperation with other groups working with the Government of China.    

      A series of technology application projects (for industrial application of biogas technologies, hybrid village power systems, and bagasse co-generation) are addressing issues presently inhibiting widespread commercialization in these particular market sectors.  Design and finance guidebooks will provide generic and flexible system designs that can be replicated on a commercial basis at other potential sites.  Complementary capacity building activities for business development and financing will build around the nuclei of the technology application projects to maximize the impact of the Project on commercialization in these market sectors.

 

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Project Activities  

Under the broad headings of Capacity Building and Technology Applications the principal project activities are:

CAPACITY BUILDING

       Establishment of the Chinese Renewable Energy Industry Association (CREIA).

       Capacity building for business development and financing.

       Support for technology standards development and certification of solar hot water heaters.

  Resource assessment and establishment of GIS databases.

       Capacity building for commercialization of wind power.  

TECHNOLOGY APPLICATIONS

       Biogas - design and construction of 3 industrial-scale biogas plants, (two at livestock farms and one at a distillery).

       Hybrid - construction of 3 village power systems, (two island systems and one remote inland village).

        Bagasse – preparation of project feasibility studies and construction of a state of the art bagasse co-generation facility in southern China.

Click on an area for a full summary of Project activities in this field.  


 

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Project Implementation   

      The Project is under the overall supervision of the United Nations Development Program (UNDP), which provides in-country technical and managerial support through the UNDP Office in Beijing. The Chinese State Economic and Trade Commission (SETC) is implementing the Project, with assistance from the State Environmental Protection Agency (SEPA). The SETC has established a project management office (PMO) as a mechanism to ensure effective and efficient implementation of activities.  The PMO is located in Beijing and reports directly to the National Project Director, the Director of the PMO, and the PMO Deputy Directors. Day-to-day duties are carried out by the National Project Coordinator, Senior Technical Advisor and 2 UNV specialists. Contact the PMO here.

      The United Nations Department of Economic and Social Affairs (UNDESA) acts as the executing agency for international financing contributed in support of Project activities. UNDESA is responsible for procurement and payment of services, subcontracts and equipment in accordance with UN rules and procedures.

      A project Advisory Group (AG) is convened twice every year to provide overall Project guidance. The AG consists of the SETC, SEPA, the Ministry of Finance, the Ministry of Foreign Trade and Economic Cooperation, all Project co-financiers, the World Bank and the Project executing and implementing agencies. The AG reviews key documents such as semi-annual and annual reports, workplans, budgets and terms of reference for subcontracts. Additional individuals may also be invited to attend AG meetings.


 

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Financing of the Project and its Actions   

      In the overall Project budget of $25.8 (USD) million, national contributions make up $11.5 million, while the Government of China provides significant in-kind contributions to cover Project personnel and other costs. In addition, the program benefits from the support of the international community. A total of $8.5 million (USD) is available through the Global Environment Facility (UNDP GEF) to support program activities and cover the incremental costs of procurement of GHG (Greenhouse Gas) emissions reducing equipment. Finally, bilateral assistance from Australia (AusAid Program) ($3 million) and The Netherlands (Ministry of Foreign Affairs) ($2.53 million) has made a significant contribution to the co-financing of this initiative.


Figure 1 gives an overview of Project expenditures according to focal area.

 

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Cooperation with other Ongoing Initiatives    

      The SETC UNDP/GEF Project is being implemented in close consultation with key role players in the field of renewable energy commercialization in China. As well as working closely with domestic Government Commissions and other Government agencies, the project is actively pursuing opportunities to link-up with commercialization efforts supported by the private sector (national and international), development assistance programs, and energy foundations, where this would directly benefit Project objectives. The World Bank and Asian Development Bank are actively pursuing financing opportunities in the field of renewables. An open dialogue between the present SETC UNDP/GEF project and the above initiatives permits close coordination and cooperation in the implementation of complementary activities, and helps to ensure maximum effective use of available funds.

      For more information on efforts supported by the international community to promote renewables in China click here.


 

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Updated 6/1/2003

Copyright UNDESA