In April, a training of key-actors took place in Hangzhou, China. IN-SHP in close collaboration with EREC, ESHA and CREIA, organised the 5-day training workshop whose purpose it was to provide training to project developers coming from different regions and provinces of China.
China had recently adopted a renewable energy law (28th February 2005), which would enter into force on 1st January 2006 and for which still a number of details needed to be fixed. The workshop thus took place at an interesting moment in time. With the perspective of establishing a RES target for China in the order of 5 % RES supply until 2020, the RES market in China is expected to take-off. China has a particular need to develop its RES potential, the country is already now facing a considerable electricity capacity shortfall.
The first day of the workshop focused on the policy framework in place both in Europe and in China, which is the precondition for RES market development. After the official opening ceremony, Mr. José Fluxa from the European Commission gave an overview of the RES policy framework within the European Union, followed by a presentation by Ms. Christine Lins from EREC outlining RES market development within the European Union up to then and giving a brief overview of the SYNERGY project “Building up commercial structures for RES in China” in the framework of which this workshop was organised. Following this, Prof. Damodaran gave an overview of SHP development in China, outlining that the annual installed capacity in the field of SHP in China was in the order of 4.800 MW with an objective to reach 8.000 MW by 2008. This was a particularly interesting figure, especially in view of the EU White Paper objective to install an addition 4.500 MW of SHP within the EU up to 2010!
The second day of the workshop focused on giving an overview of the opportunities for the financing of RES projects through CDM, which, especially after the entering into force of the Kyoto protocol, was an interesting means of financing for RES projects, although its possibilities were limited. First of all, the process of getting emission reductions certified was quite a complicated one involving a high level of transaction costs. So far, China had managed to set up its DNA (Designated National Authority), the body responsible for emitting the CERs (Certified Emission Reductions), which then can be traded on the international market. However, only then the first projects were registered as CDM projects, and no single CDM project has been concluded so far. Furthermore, the contribution of CDM to the project costs depends on the carbon market, however it normally does not exceed 10 % of the total project costs. Another important point to note is that in order to be eligible for CDM funding, projects need to prove additionality, meaning that they contribute to emission reduction.
The third day of the workshop focused on in-depth training of the basics of wind energy given by Prof. Arthouros Zervos, President of EREC and EWEA as well as on the basics of SHP given by Prof. Bernhard Pelikan, President of ESHA.
All session were concluded by a very lively discussion among the conference participants. The training was rounded up by a day of site visits to a SHP installation to see in practice what had been discussed throughout the workshop.
During the last day, the workshop recommendations were presented and final questions of the audience answered.
Please take a look at the workshop agenda or download the presentations of the workshop days:
Jose Fluxá Garcia, European Commission
Christine Lins, EREC
Prof. Damodaran, IN-SHP
Jos Bouma, SenterNovem
Beth Marshall & Chin Ching Soo
Li Junfeng, CREIA
Li Junfeng, CREIA
Edward Y. Sumoto, IN-SHP
Annalisa Tidona, IN-SHP
Chin Ching Soo, IN-SHP
Lin Wei, CREIA
Guan Yisong, CREIA
James Bradley & Laro Gonzales, IN-SHP
Guan Yisong, CREIA
Prof. A. Zervos, EWEA/EREC
Prof. B. Pelikan, ESHA