China Issues New Policies to Promote Biomass Power

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Researched by Industrial Info Resources China (Beijing, China)--China's National Development and Reform Commission (NDRC) has signaled support for biomass-fired power generation.

According to new notices by the NDRC, biomass-fired cogeneration power will be encouraged to improve the utilization of biomass resources. Biomass projects shall be included in cogeneration power facilities whenever feasible, according to the commission. The NDRC also encouraged the renovation of existing biomass facilities to provide combined heat and power services.

Biomass power projects that do not supply heat would be subject to approval by provincial governments; those projects with combined heat and power would be subject to approval by the local governments.

Biomass power has gained attention in China for the past several years, but many biomass investors had left the industry due to increasing fuel collection costs.

In 2010, the NDRC finalized a nationwide on-grid sales price of CNY 0.75 (12 cents) per kilowatt-hour (kWh) for biomass-fired power generation, in order to promote the industry. This compares with the average on-grid sales price of about CNY 0.4 (6 cents)/kWh for coal-fired power.

The mixing of fossil fuels, such as coal, in biomass fuel is prohibited.

The NRDC also called for proper site selection for biomass power facilities, saying such projects would be included in national or provincial plans. Urban waste-to-energy projects would conform to national or provincial plans for urban waste disposal facilities.

As of the end of 2013, China's installed biomass power capacity reached 8.5 gigawatts (GW), including 1 GW of biomass cogeneration power. China's 12th five-year plan for biomass energy development calls for installed biomass power capacity to reach 13 GW by the end of this year.

Industrial Info is tracking more than 5,200 active power projects and 2,200 operational power plants in China.

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