Study and Propose the 13th FYP for China Biomass Development
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GENERAL BACKGROUND
The China Renewable Energy Scale-up Program (CRESP) has been developed by
the Government of China (GOC) in cooperation with the World Bank (WB) with
the support of the Global Environment Facility (GEF) to provide assistance with
the implementation of a renewable energy (RE) policy development and
investment program. It aims to: i) study the current renewable energy resources
status; ii) learn from the experiences of developed countries in the development
of renewable energy; iii) support the formulation of renewable energy
development policy in China; iv) implement renewable energy scale-up
development v) provide cost-effective and commercial renewable energy
electricity to the electric power market; and vi) replace coal-fired generation
thereby reducing its negative local and global environmental impacts.
The program implementation cycle has been divided into two different
implementation phases. The phasing is intended to assist a gradual roll out of the
policy and supporting measures, in step with the implementation capacity of
administrative and regulatory bodies, and of the commercial renewable energy
industry.
Phase 1, which was implemented from 2005 to 2011, assisted the Government in
China in the formulation, adoption and early implementation of the Renewable
Energy Law, technology improvement for wind and biomass generation, and
policy study, demonstration projects and capacity building in the four
demonstration provinces (Jiangsu, Zhejiang, Fujian and Inner Mongolia). For
Phase 2, a GEF grant of $ 27.28 million is approved to support Chinese
government’s 13th Five-year Plan to enable continued and sustainable scale-up of
commercial RE development through cost reduction, efficiency improvement,
and smooth integration to the grids, thereby contributing to government’s target
of reduction in carbon intensity.
Phase 2 of CRESP will focus on the following 5 components:
1. Policy and implementation support;
2. Grid Integration/Access and Technical Design
3. Technology improvement;
4. Pilot Demonstration;
5.
Capacity Building and Investment Support for renewable energy
development
The GEF assistance provided under the programs will be managed by the PMO.
Specific Background
In 2013, the growth of China’s biomass industry has slowed down. The industry
has gone through a “bottleneck” period in development. The tight raw material
supply in the first half year led to a large number of agricultural and forestry
biomass power generating projects reducing its capacity. After the resource
optimization and reorganization and technical transformation, in the second half
year, these projects’ operation started to improve. They dredged the resource
acquisition channels, improved power generation technology, and the generating
capacity has grown. By the end of 2013, the total installation capacity of the
biomass power generation was 8.5 GW, which increased by 6% compared with
last year. Compared with the past three years with more than one million
kilowatts of installation capacity growth, it had an obvious decrease. The
grid-connected capacity of biomass power generation was 7.79 GW, of which
agricultural and forestry direct combustion power generation is about 4.2 GW,
waste incineration power generation is about 3.4 GW, as well as a small amount
of methane power generation, sludge power generation and biomass gasification
power generation. The output of biomass briquette was around 6 million tons,
which was essentially equal to the last year. The output of bio-ethanol was about
2.1 million tons, which had a slight increase over the previous year.
The direct combustion power generation project mainly locates in eastern and
central China, where have rich crop straw. The cumulative installation capacity of
waste incineration power generation accounted for 44% of the total national
biomass capacity grid connected, which became the important component of
China’s biomass power generation. The waste incineration power generation
projects mainly locate in the economical developed provinces. With the
successful popularization and implementation of waste incineration power
generation in central and eastern China and the improvement of the conceptual
knowledge from the public, the waste incineration power generation will remain
its rapid development in the country. Since China covers a vast geographic area,
the resources, climate and other natural conditions are quite different and
unevenly distributed, the methane projects mainly locate in the areas with rich
biomass resources and suitable climate and environment. The overall situation
presents the phase-down from south to north and from east to west. There are
100,000 methane projects based on agricultural waste, 13 extra large methane
projects, whose daily output is more than 5000 m³, and 5814 large methane
projects. In 2013, the output of briquette had little change compared with 2012.
Affected by the delay of central government subsidy, a large number of small
enterprises relying on government subsidies could not survive and had to shut
down. The biomass heating received attention from the national energy
authorities. The National Energy Administration (NEA) has organized several
special investigations of biomass heating, and actively promoted the extension of
heating demonstration projects. The liquid fuel had a slow progress due to
non-food development. With the adjustment of subsidy policy and tax privilege,
the enthusiasm of enterprises has been mobilized. Especially the fuel ethanol
projects’ approval authority has been delegated to local governments, which
effectively promotes the projects construction and a number of projects have
been approved.
On the whole, however, the biomass industry still has some competitive stress in
terms of resources. The aspects of policy system still need further improvement
and the technology development and utilization efficiency needs to be further
optimized and improved. The “bottleneck” period of industrial development
needs an urgent breakthrough, so that the industry can make greater
contribution to replace traditional energy and air pollution.
“The 13th Five Year Period” is one of the key periods to promote the development
of renewable energy in China; it is also a key stage of upgrading of biomass
industry. While supporting the study on general 13th FYP for renewable energy, it
is necessary to support carrying out “Study and Propose the 13th FYP for China
Biomass Development” in the first year of CRESP Phase II. The development
status and problems of biomass industry should be combed and identified. By
taking reference of international experience, the development strategy and the
key layout of biomass energy in the next five years should be proposed for
reference by NEA.
Objectives
The objectives of this task are to study and propose the 13th Five Year Plan for
China biomass development and to provide a reference for decision makers.
Tasks
Task 1: Review the implementation of 12th FYP and learn lessons
Biomass is the only sub-sector that can not achieve the govt. target in the
Medium and long-term development plan for renewable energy in China. And for
the objectives of “12th FYP for Biomass Development in China”, according to the
data of current development status issued, although there is one year to go, but
there is still big gap. It can not be expected that the objectives of the 12th FYP be
realized by end of next year.
Therefore, this study is very necessary and important. In-depth analysis should
be done why neither the objectives in Medium- and Long-term plan nor in the
12th FYP for biomass can be met. The consultant shall review the implementation
of “12th FYP for Biomass Development in China” and relevant supporting policies
during the past 4 years, identify the gap between the status and the objectives,
analyze the positive and negative (if any) effects these have brought to the
industry development. Lessons should be summarized.
Task 2: Identify the key barriers to biomass energy development in China
Task 2.1: review existing biomass studies supported by CRESP phase I
CRESP phase I have supported some studies on biomass, such as regulations on
biomass resource assessment, biomass material collection and equipments, raw
material treatment, as well as comparison among various technologies, etc..
Besides, a biomass fuel supply study has also been done by the expert from the
World Bank before and “Fuel Supply Handbook for Biomass-Fired Power Projects”
has been finished. All of these deliverables are available for reference. So, the
consultant shall review the existing studies first, and get further knowledge of
the biomass status and barriers in China.
Task 2.2: identify barriers
Besides barriers identified in above studies, the consultant shall conduct a deep
analysis on the whole chain from the material collection (including material price,
collection scope and shipment mode) and supplying to biomass (including power
and heating ) and management mechanism in order to identify the key barriers
(if any) to the industry development.
Task 3: Summarize the international experience of biomass development
The consultant shall review the international data and information of biomass
development, not only of power, but also heating (In recent years, biomass
heating is being developed fast, and now NEA also has more interest in this field).
Experiences of international biomass development should be summarized
accordingly, but most importantly, fuel supply and pricing.
To learn international experience of biomass heating and really benefit from it,
an international expert is required to hire by the consultant. The international
expert shall look at European and US experience on biomass, particularly for
heating in Stockholm and Copenhagen. The consultant shall be responsible for
the selection of the international expert, including developing TOR for the latter,
signing contract with him, and quality control of his/her report. The
international expert should be approved by the PMO and the Bank.
Task 4：Study to identify the development strategy and pathway
Task 4.1: identify the development strategy and pathway
Aiming to remove the barriers, with the international experience, the consultant
shall study and propose a strategic plan for biomass development (focusing on
large scale or distributed, power and heating, how to overcome the barriers
identified, what are the realistic targets, etc.) for the next five year.
Task 4.2: finish the study report
A study report on biomass development strategy and pathway should be finished,
in which a strategic roadmap and its safeguards will be proposed.
Task 5: Draft the 13th FYP for biomass in China
Task 5.1: develop scenarios and optimize the targets
The consultant should work out the "Energy Supply Curve" and conduct
scenarios analysis with different objectives. It should also conduct the
cost-benefit analysis; analyze the economical efficiency, environmental benefits
and other social benefits of various scenarios. Based on the comparison of
various objectives, the optimal one is selected.
Task 5.2: draft the plan
The consultant shall draft the 13th FYP for biomass energy development. This
plan should at least include biomass development status in China, significance,
principles, objectives (for overall biomass and for specific technologies),
priorities and layout, investment estimation and benefit analysis, the safeguard
measures for its implementation, etc.
Task 5.3: hold meetings and workshops for consultation
The consultant shall organize meetings and workshops for consultation. Besides
the working group members for this study, the consultant shall invite the
consultants of the other biomass studies under CRESP Phase II, the enterprises
representatives in this field and NEA to participate to provide comments.
Possibly more than one consultation will be needed.
The minutes for these meetings and workshops should be prepared, but only in
Chinese.
Task 5.4: revise the draft plan
According to the feedback of NEA and stakeholders, the consultant shall revise
the plan draft until it is issued.
Task 6: Contribute to study for the overall 13th FYP for renewable energy
development
CRESP is also supporting “Study and Work out ‘13th FYP’ & Medium- and
Long-Term Renewable Energy Development Plan (2016-2030) (proposal) For
China”, in which biomass is an important part, so the consultant shall provide
contribution to it. The contribution includes, not limited to:
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Share the data and information of biomass energy status in China;
Participate the discussion and give comments on biomass section;
Provide deliverables for reference;
Other assistance needed.
Deliverables and Schedule
This project is expected to be launched in December 2014 and completed before
December, 2015. The task outputs are as follows:
 1. Study report on biomass development strategy and pathway; within 5
months after contract signature;
 2. The 13th Five Year Plan for biomass development in China (draft); within 9
months after contract signature
 3. The 13th Five Year Plan for biomass development in China (proposal);
within 12 months after contract signature
 4. Workshops minutes
All the outputs mentioned above (except deliverable 4) should be submitted in
both Chinese and English.
Type of contract and the budget
The type of contract is lump-sum contract. The budget of this project is 130,000
USD. According to the guidelines of the World Bank, the consultant will be
selected based on SSS. The budget includes labor cost, travel cost and others of
the consultant; it also includes the fee for the international expert (one round
trip to China is allowed). But the contract value will be decided by the
negotiation based on the proposal. The budget will be deleted when bidding. If
requested, the working group members list and the working plan for this study
should be submitted to NEA for approval before contract signature.
Payment arrangements
There will be 4 payments under this contract:
 First payment: after the consultant selected and contract signed, PMO pay 10%
of the contract value to initiate the activity.
 Second payment: after the deliverables 1 finished and submitted to PMO, and
obtained acceptance, PMO pay 30% of the contract value；
 Third payment: after the deliverables 2 finished and submitted to PMO, and
obtained acceptance, PMO pay 40% of the contract value；
 Fourth and final payment: after the deliverables 3-4 finished and submitted
to PMO, and obtained acceptance, PMO pay 20% of the contract value；
Qualification
The consultant should have the following qualifications:
 Familiar with the biomass energy status in China
 Familiar with the biomass energy status in the world
 Rich experience in renewable energy, especially in biomass energy policies
or plans study
 Rich experience of providing suggestions on renewable energy to the
government, especially on the biomass energy policies or plans
 Good organizational skills;
 Have a good network of expert to implement this project smoothly
 Practical experience in organizing workshops
 Good capabilities in report writing
 Experiences of undertaking projects of the World Bank would be an
advantage.