renewable energy projects in rural china: a systemic capacity … · 2018-08-12 · million 1.33...

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Renewable Energy Projects in Rural China: A Systemic Capacity Approach Long Seng To [email protected] Research Fellow, STEaPP, University College London 27 th November 2015 SPREE, UNSW 1

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Page 1: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Renewable Energy Projects in Rural China: A Systemic Capacity

ApproachLong Seng To

[email protected] Fellow, STEaPP, University College London

27th November 2015SPREE, UNSW

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Page 2: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Overview

1. What is capacity development?

2. Overview of case studies

3. Analysis of case studies

4. Lessons learned

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Page 3: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP
Page 4: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

‘Giving a fish’

1. The community may not be able to operate and maintain it

2. The community can’t do it themselves next time

3. The community may not value it

4. May take local jobs!

en

tre

nch

de

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nd

en

cy

Page 5: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP
Page 6: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

‘Teaching to fish’

Is this capacity

development?

Page 7: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

- Ricardo Levins Morales

Page 8: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Approaches to Capacity Development

Organisationalapproaches

Institutional approaches

Systems approachesParticipatory processes

approaches

Capacity Development

8Based on Lusthaus et al., 1999.

Page 9: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Overview

1. What is capacity development?

2. Overview of case studies

3. Analysis of case studies

4. Lessons learned

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Page 10: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Background on Inner Mongolia Autonomous Region, China

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IMAR China

Population 24.22 million

1.33 billion

Area 1,183,000 km2

9,596,961 km2

Populationdensity

20.2/ km2 139.6/km2

GDP US$145.05 billion

US$4.909 trillion

GDP per person

US$5,561 US$6,600

HDI 0.803 (high)

0.772 (medium)

Electrification rate

- 98 %Sources: CIA (2010), China Data Online (2010), Peng (2006), UNDP (2009)

Page 11: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

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Page 12: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Brightness Program, China

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INSTITUTION DATE AIM SCALE LOCATION

State Development Planning Commission (now the NDRC)

1996 –2010

100W/ person for 23 million people in remote areas using wind and PV

> 106,000 people* for pilot projects

Gansu, Inner Mongolia, Tibet, Xinjiang & Qinghai

* Assuming 4 people/ household

Page 13: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

A typical solar PV / wind hybrid household system

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Page 14: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Inverter and battery box for PV/ wind hybrid household system

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Page 15: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Local PV/wind business:

1. retail shop

2. Installation

3. repairs 153

2

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Page 16: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Township Electrification Program, China

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INSTITUTION DATE AIM SCALE LOCATION

National Development & Reform Commission (NDRC)

2001 –2003

Provide electricity via renewable energy to 1061 townships that could not be feasibly reached by grid extension.

~ 1 million people

Xinjiang; Qinghai; Gansu; Inner Mongolia; Shaanxi; Sichuan; Hunan; Yunnan; Tibet

Page 17: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Township Electrification Program: Centralised System

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Page 18: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

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1. Second-hand PV panels for

sale

2. Supplementary power source

at general store

3. Empty school buildings

1

2

3

Page 19: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

REDP, China

INSTITUTION DATE AIM SCALE LOCATION

National Development & Reform Commission/ World Bank/ Global Environment Facility

2001 –2008

Reduce the cost of PV systems, improve PV product quality, develop the potential rural PV market and improve after-sale services for PV systems in remote rural areas.

1.61 million people*

Inner Mongolia; Gansu; Qinghai; Xinjiang; Tibet; Sichuan; Ningxia; Shan’xi and Yunnan.

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* Assuming 4 people/ household

Page 20: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Timeline of Projects

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Page 21: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Overview

1. What is capacity development?

2. Overview of case studies

3. Analysis of case studies

4. Lessons learned

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Page 22: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Analytical Framework: The RE Capacity Pyramid

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Tools

Skills & Knowledge

Organisational Structures

Sectoral Networks

Institutional Environment

Page 23: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Tools

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Brightness Program

• Household wind/PV hybrid systems

• Subsidy

Township Program

• Wind/ PV hybrid mini-grid

• Initial grant

REDP

• Household wind/PV hybrid systems

• Subsidy

Page 24: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Skills & Knowledge

Brightness Program

• End-users: excellent

• Technicians: excellent

Township Program

• End-users: poor

• Local technicians: poor

• Engineers: excellent

REDP

• End-users: excellent

• Technicians: excellent

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Page 25: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Organisational Structures

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Brightness Program

• Technicians located in townships

• Established ‘Brightness companies’ through grants

Township Program

• Operator located in township

• Engineers located in capital city

REDP

• Technicians located in townships

• Participation from ‘Brightness companies’

Page 26: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Sectoral Networks

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Brightness Program

• Majority of supply chain located in IMAR

• Monopoly sales & service network by design

Township Program

• Majority of supply chain located in China

REDP

• Majority supply chain located in IMAR

• Monopoly sales & service network in practice

Page 27: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Institutional Environment

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Brightness Program

• Long-term, coherent policies

• Linkages with other sectors through NDRC

• Favourable macro-economic environment

Township Program

• Good policy environment, but project did not fit with other RE in IMAR

• Needed more time for planning & consultation with other sectors

• Favourable macro-economic environment

REDP

• Flexible implementation meant that project fit with other RE in IMAR

• Long-term, coherent policies

• No linkages with other sectors

• Favourable macro-economic environment

Page 28: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Overview

1. What is capacity development?

2. Overview of case studies

3. Analysis of case studies

4. Lessons learned

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Page 29: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

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Tools

• Reliable hardware

Skills & Knowledge

• End-user awareness of renewable energy

• End-user technical skill

• Supply chain technical skill

• Supply chain commercial skill

Organisational Structures

• Sustainable financial arrangements

• Effectiveness

• Flexibility

Sectoral Networks

• Organisations along the whole supply chain

• Learning networks

• Advocacy coalitions

Institutional Environment

• Long-term policy frameworks

• Integrated planning

• Alignment with values & norms

• Favorable macro-economic environment

Page 30: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Conclusion: Success Factors

• Continuity, rather than individual projects, is most important.

• An incremental approach is useful.

• Capacity at the local, provincial and national levels.

• Resilience is an important property of capacity.

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Page 31: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Take Home Message

1. It’s always better to assess and build on existing capacity.

2. Context matters!

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Page 32: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

Renewable Energy Projects in Rural China: A Systemic Capacity

ApproachLong Seng To

[email protected] Fellow, STEaPP, University College London

27th November 2015SPREE, UNSW

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Page 33: Renewable Energy Projects in Rural China: A Systemic Capacity … · 2018-08-12 · million 1.33 billion Area 1,183,000 k m2 9,596,961 km2 Population density 20.2/ km 2139.6/km GDP

References

• ADB (2010). Asian Development Outlook 2010: Macroeconomic Management Beyond the Crisis. Manila, Asian Development Bank.

• Bolger, J., 2000. Capacity Development: Why, What and How. Canadian International Development Agency.

• Central Bureau of Statistics (2009). Statistical Year Book of Nepal. National Planning Commission Secretariat. Kathmandu, Government of Nepal.

• China Data Center (2010). China Data Online, University of Michigan.• CIA (2010). The World Factbook. Washington, DC, United States Central

Intelligence Agency.• European Communities, 2005. Institutional Assessment and Capacity

Development: Why, what and how?, Tools and Methods Series. Office for OfficalPublications of the European Communities, Luxemburg.

• Kaplan, A., 1999. The Developing of Capacity, NGLS Development Dossier No. 10. Non-Governmental Liason Service, Geneva, Switzerland.

• Lusthaus, C., Adrien, M.-H., Perstinger, M., 1999. Capacity Development: Definitions, Issues and Implications for Planning, Monitoring and Evaluation. Universalia.

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More References

• OECD, 2006. The Challenge of Capacity Development: Working Towards Good Practice. OECD,.

• Otoo, S., Agapitova, N., Behrens, J., 2009. The Capacity Development Results Framework. World Bank Institute, Washington, D.C., U.S.A.

• Peng, W. and J. Pan (2006). "Rural Electrification in China: History and Institution." China & World Economy 14(1): 71-84.

• Potter, C., Brough, R., 2004. Systemic capacity building: a hierarchy of needs. Health Policy and Planning 19, 336 –345.

• Ubels, J., Acquaye-Baddoo, N.-A., Fowler, A., 2010. Capacity Development in Practice. Earthscan, UK.

• UNDP (2009). Human Development Report 2009 - Overcoming Barriers: Human mobility and development. New York, United Nations Development Program.

• UNDP, 2008. Capacity Development Practice Note. United Nations Development Program, New York, USA.

• Woodhill, J., 2010. Capacities for Institutional Innovation: A Complexity Perspective. IDS Bulletin 41, 47–59.

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