Policy Reforms of Biomass Power Generation Industry in China: Biomass CHP

Abstract

China's biomass power generation industry has experienced more than 10 years of development, and under the new situation of clean heating policy, it is facing a good opportunity for the transformation and upgrading of CHP.A series of incentive policies issued by the Chinese government, such as financial subsidies and income tax relief, provide a good policy environment for the development of the biomass CHP industry. Private capital is the main force of China's biomass CHP investment. In order to broaden the financing channels of enterprises, the government encourages the listing of biomass CHP companies or the issuance of bonds. Biomass CHP has the characteristics of high efficiency, low carbon and energy saving. It helps to improve the utilization rate of biomass resources, control haze, build beautiful countryside and increase farmers' income. Introduction Global warming has attracted worldwide attention to greenhouse gas emissions, and the Kyoto Protocol stipulates the limits of greenhouse gas emissions from States parties. In order to achieve the emission reduction targets of the Kyoto Protocol, the development and utilization of renewable energy and the improvement of energy efficiency have been paid much attention by all countries. After the promulgation of the "renewable energy law" in 2006, China's biomass energy industry is developing rapidly. The main way to use it is biomass power generation. Biomass direct fired power generation projects are mainly concentrated in North China, Northeast China, central China and eastern China with abundant crop straw. The installed capacity accounts for about 94% of the total biomass fired power generation installed capacity in China. However, most of them only generate electricity without heating, resulting in the low efficiency of biomass power generation industry in China, especially the annual equivalent load hours averaging less than 5200 hours. Only 7 provinces have an annual equivalent load of more than 6000 hours, including Liaoning, Ningxia, Jiangsu, Shaanxi, Zhejiang, Guangxi and Guangdong. In 2017, the Northern Region's Winter clean heating Plan (2017-2021) created a good opportunity for biomass power generation to transform into biomass CHP. The aim of this paper is to present an overall policy framework based on the development process of biomass CHP in China. In addition, it also introduces the latest projects in order to realize the government's policy of cleaning and heating, including the overall situation, the development model and the main characteristics. In the end, it analyses the environmental and social benefits of the development of the biomass CHP project. Development Process of Biomass CHP in China