1. Support for the SDDX Program: Training for Renewable Energy Service Companies Beijing JKD Renewable Energy Development Center 8 th June, 2005

2. Background China is the largest developing country in the world with a total population approaching to 1.3 billion. At present there are still about 70 million people in China without access to electricity. Villages without access to electricity are in remote and sparsely populated regions of western China, where there is often limited access to roads, markets and other services.

3. “ SDDX ” Program Providing electricity to the people living in rural remote areas, which are not likely to be covered by grid extension, is the priority of the National Rural Electrification Program of the Government of China. China Government invested significant capital to provide electricity to 26 million of the rural population who are not likely to have access to grid electricity. This program has two phases – one that has already commenced which is called the Song Dian Dao Xiang (SDDX) program (targeting 1000 administrative villages) and an even larger one that is slated to commence in the future called the Song Dian Dao Cun program (targeting about 20,000 smaller villages). The National Development and Reform Commission (NDRC) is the implementing agency of the program.

4. Capacity Building Project for RESCOs To ensure the sustainable development of village power systems in SDDX Program, with the supporting from UNDP/GEF Project, JKD will develop a project focus on analysis to see which institutions are capable of being RESCOs and then providing capacity building to them on appropriate business models for the installed systems. It begins at beginning of 2005, and it will be accomplished in 10 months. 11 domestic experts and 2 international experts contributed to project, and NDRC, Provincial governments also worked with project group for providing support and attention.

5. Main Results Identify the most likely institutions capable of providing rural energy services and promote the commercialization development models for the sustainable development of village power systems in SDDX Program. Identify the training needs of the local RESCOs on hybrid village power system management and productive use applications of the stand-alone village power systems. Develop a training package including training material and training program for the RESCOs. Carry out pilot training, and 1-2 RESCOs will be monitored and supported for their implementation performance. Provide lessons and experiences for the sustainable operation of other RE project in China.

6. 5 Tasks Task1 Conduct the field survey on current management level investigation. Task 2 Develop the training material and program. Task 3 Hold the pilot training workshops. Task 4 Monitor and support mission on demonstrated RESCOs. Task 5 Hold a dissemination workshop.

7. Our deliverables until now Remarkable achievements of SDDX; Main Barriers and suggestions for SDDX; Potential business models and institutions for providing rural energy services for SDDX; Training package includes training material and training curriculum.

8. Remarkable achievements of SDDX Since the SDDX program was launched in 2002, totally 662 PV, Wind/PV, PV/ Diesel hybrid systems, with capacity 15718.12kW, and 302 small hydro-power systems, with capacity 274840.3kW have been built in seven provinces of western China. Most of the systems are running smoothly under the efforts of both the Provincial Development and Reform Commission and the system integrators in the past three years and the maintenance and management are also on the rails. SDDX Program improved the local economic development and the living condition level. Additionally, the adoption of renewable energy is significant to the local environment protection.

9. Main Barriers for SDDX It is urgent to appoint ownership of power stations. The O&M and components replacement cost for all systems require sufficient financing support. The instability of operators brings potential management problems. The tariff price is not uniform with local grid price and is a difficult collection for almost all of the province. The limited education and management skills of operators cannot unable them to handle the troubleshooting. The available installation capacity can only afford the basic household consumption, but the needs of productive loads.

10. Suggestions for SDDX Identify the ownership of power stations ASAP. Identify the Energy Technology Service specifications and standards ASAP. Realized the RES and components replacement funds. Identify proper RESCOs for SDDX Program. Extend the system capacity timely.

11. Potential business models and institutions The potential institutes, includes Local Power Utility, System integrators, Brightness Program companies or other organizations like regional energy companies or energy service companies. The potential models, includes Government, RESCOs, Utility, Authorization, Contract, Concession, Multiple-entities, Any combination of above.

12. Capacity Building for RESCOs Training material will covers: - Challenges and chances for Rural Energy Service - Fundamental tasks for RESCOs - International RESCOs models, experience,lessons and case study - China current RESCOs models, experience,lessons and case study - Proposed RESCOs models for China SDDX and SDDC Program

13. Survey on-site

14. Household interview

15. Expression in their eyes

16. Thank you !