North China Electric Power University

Investigation and Research
of China Power
Social Universal Services

North China Electric Power University

July 30, 2006

2

Contents

Units of Measure 7

Acronyms and Abbreviations 8

Foreword 9

Executive Summary 1

1. Meaning and Background of Universal Service 1

2. Introduction to Domestic Universal Service 1

3. Summary of the Investigation on Domestic Universal Service 1

4. Summary of Investigations at the Village Level 2

5. Summary of Investigations at the Town Level 2

6. Solving the Electric Power Problem with a Scattered Power Supply 3

7. Work That Has Been Done for the Domestic Universal Service 4

8. Recommendations for the Power Social Universal Service 5

Chapter 1. Summary of Power Social Universal Service 8

1.1 The Concept of Universal Service and the Meaning of Actualizing the Power Social Universal Service 8

1.2 The Development Process of Power Social Universal Service in China 9

1.2.1 Introduction to the Investigation on Power Social Universal Service in China 9

1.2.2 The Power Social Universal Service Project in China 10

Electric Power Helping the Poor to Get Rich Together Project 10

The Government Department Solves Electrical Problems Positively 11

Household-Cover Electrify Project 11

Urban and Rural Power Network Transformation 12

Two Reforming and the Same Electric Price in Urban and Rural Districts 12

Flood-Fighting and Migration Relocation 13

Reduces the Electrical Expense 13

Bright Project 14

1.2.3 Results of Implementing Power Social Universal Service in China 14

Chapter 2. The Summary of Investigation on the Power Universal Service in China 16

2.1 Investigation Methods 16

Progress of the Investigation 17

Discriminating the Inefficient Questionnaire 18

2.2 Contents and Designing of the Investigation 19

Contents Planning of the Basic Research 19

Planning of Basic Research 19

Contents Planning of Residents Interviewed 20

Planning of the Interview Forms 20

Contents Planning of Policy Research 20

Planning of the Investigation Form 21

2.3 Implementation of the Investigation 21

Key Investigation 21

The Organization System of Investigation 21

Sample Capacity of the Key Investigation 23

Chapter 3. Investigation Results and Analysis of Power Social Universal Service in China 25

3.1 Summarization of the Investigation on Power Social Universal Service in China 25

3.2 Analysis of Basic Conditions 26

3.2.1 Situation of Population 26

3.2.1.1 Summary of the Situation of Domestic Impoverished Population 26

3.2.1.2 Situation of Natural Village, Household and Population without Electric Power 31

3.2.1.3 The Income Situation of Low-Income Population 32

3.2.1.4 Average Power Consumption per Capita 34

3.2.2 The Analysis of Maintenance and Running Cost of the Rural Grid 35

3.2.2.1 Analysis of the Actual Running Cost of Rural Network 40

3.2.2.2 The Comparative Analysis of the Reasonable Running Cost and the Actual Cost of the Rural Network 43

3.2.3 The Situation of the Rural Network’s Reformation and the Investment in Solving the Unelectrified Villages’ and Households’ Electric Problems in the Last Five Years 45

3.2.4 The Situation and Solution of the Villages and Residents without Electric Power 48

3.2.5 The Situation of Dispersive Power Source 52

3.2.5.1 The Potential of the Resource 52

3.2.5.2 Current Situation of Development 59

3.2.5.3 Technical and Economic Analysis 61

3.3 The Analysis of the Resident Investigation Result about the Electric Power Social Universal Service 68

3.3.1 The Situation of the Countryside Residence Investigation and Study 68

3.3.2 City Residence Investigation and Study Situation 77

3.4 Analysis and Suggestions for the Policy Investigation of Power Social Universal Service 85

3.4.1 Problems Encountered during the Implementation of Power Social Universal Service 85

3.4.1.1 The Difficulty of Resolving the Electrical Problem for Villages and Households without Power 85

3.4.1.2 Tremendous Pressure on Power Enterprises 85

3.4.1.3 The Power Grid Corporation’s Lack of Understanding of Power Social Universal Service 86

3.4.1.4 Huge Gap in Funds 86

3.4.1.5 Existing Problems in the County Power Supply Companies 87

3.4.2 Policy Suggestions on the Power Social Universal Service 91

3.4.2.1 The Definition of Power Social Universal Service 91

3.4.2.2 The Main Responsibility Subject of Power Social Universal Service 92

3.4.3.3 The Implementation Subject of Power Social Universal Service 93

3.4.2.4 The Scope, Objectives and Standards of Power Social Universal Service 94

Poor Households Determined by the Civil Affairs Departments－Part of Poor Households That Lose the Ability to Care for Themselves 95

3.4.2.5 The Fundraising Channels and the Fund Quotas of Power Social Universal Society 96

3.4.2.6 The Power Social Universal Service’s Compensation Mechanism for Power Supply Enterprise 98

3.4.3 The Suggestions on the Operation Mode of Power Social Universal Service 100

3.4.3.1 The Analysis of the Power Social Universal Service’s Operation Mode 100

3.4.3.2 Analysis of the Accreditation Mode 103

3.4.3.3 Analysis of the Mode of Funding 104

3.4.3.4 The Project Operation Mode DOBT 105

3.4.4 The Suggestions for the Regulation Means of Power Social Universal Service in China 108

3.4.4.1 The Subject and Object of Regulation for the Power Social Universal Service 108

3.4.4.2 The Principle and Goal of Power Social Universal Service 108

3.4.4.3 Regulation Methods of the Power Social Universal Service 108

Chapter 4. Summary of the Investigation on the Power Social Universal Service in China 111

Annex 1: Summary and Illumination of Domestic and International Universal Service 113

1.1 Summary of Domestic and International Telecommunications Industry Universal Service Experience 114

1.2 The Experience of Domestic and Overseas Postal Universal Service 122

1.3 Summary of Experience of the Universal Service in the Power Industry Abroad 122

Annex 2: The Questionnaire about Power Social Universal Service in China 126

1. The questionnaire about the general investigation of “power social universal service in China” 126

2. The questionnaire about policies of “power social universal service in China” 138

3. The questionnaire about power social universal service in china (rural) 140

Annex 5: The Questionnaire about Power Social Universal Service in China (Town) 146

References 152

Figures

Figure 2-1: The Designing of Investigation Process 18

Figure 3-1: Unelectrified Natural Villages, Households, and Population, 1999–2004 31

Figure 3-2: Unelectrifying Rate of Townships, Villages, Households, and Population in Five Sampled Provinces 32

Figure 3-3: Percentage of the Low People Insured in Gansu, Jilin, and Yunnan Provinces 32

Figure 3-4: Comparison between Low Person Insured and All Households’ Average Annual Income per Person 34

Figure 3-5: Comparison between Average Annual Income per Person and Annual Electricity Consumption 35

Figure 3-6: The Rural Network’s Unit Cost of Sold Electricity Quantity 41

Figure 3-7: Comparison of Rural Network’s Actual Cost Structure, 2000 42

Figure 3-8: Rural Network’s Actual Cost Expense Structure 43

Figure 3-9: Comparison of Rural Network’s Actual Cost and Reasonable Demand Cost 43

Figure 3-10: Cost of Unit Sold Electricity Quantity under the Rural Network’s Reasonable Demand Cost, 2000–04 44

Figure 3-11: The Capital Source Structure of the Investment in Rural Networks’ Five-Year Reformation Plan 47

Figure 3-12: The Structure of the Cumulative Arrived Fund of the Five-Year Rural Network Reformation 48

Figure 3-13: Comparison of the Fund for Solving Nonelectricity Villages’ Problem in the Five-Year Rural Network Reformation Plan 48

Figure 3-14: The Distribution of Wind Resources in China 54

Figure 3-15: The Distribution of National Solar Energy Resources 58

Figure 3-16: The Influence of Different Directions on Solar Generation 61

Figure 3-17: The Hardware Configuration of a Stand-Alone Photovoltaic Power Station 62

Figure 3-18: The Constitution of the Initial Investment of the Stand-Alone Photovoltaic Power Generating System 63

Figure 3-19: The Basic Investigation Situation of Peasant Households 69

Figure 3-20: The Age Constitution Situation of the Rural Households in Investigation and Study 70

Figure 3-21: The Cultural Level of the Rural Households under Investigation and Study 70

Figure 3-22: The Occupation Constitution Situation of the Rural Households under Investigation and Study 71

Figure 3-23: The Main Income Source of the Rural Households under Investigation and Study 71

Figure 3-24: The Living Burden Situation of the Rural Households under Investigation and Study 72

Figure 3-25: The Future Income Situation of the Rural Households under Investigation and Study 72

Figure 3-26: The Analysis of the Factor Influencing Life Changes 73

Figure 3-27: Family Revenue and Expenditure Change of the Rural Households under Investigation and Study 74

Figure 3-28: The Average Electricity Consumption and Electrovalence Situation of the Rural Households under Investigation and Study 75

Figure 3-29: The Electricity Charge Disbursement Situation of the Rural Households under Investigation and Study 75

Figure 3-30: The Situation of the Satisfaction Degree with Electrovalence 76

Figure 3-31: The Living Electrovalence Level Expected by Rural Households under Investigation and Study 76

Figure 3-32: The Demand of Rural Households Received Investigation and Study for Universal Service of Electric Society 77

Figure 3-33: The Constitution Situation of Farmers’ Electric Quality in the Investigation and Study 77

Figure 3-34: The Basic Situation of the Town Users under Investigation and Study 78

Figure 3-35: The Age Constitution Situation of the Town Users under Investigation and Study 78

Figure 3-36: The Cultural Level of the Town Users under Investigation and Study 79

Figure 3-37: The Occupation Constitution Situation of the Town Households under Investigation and Study 79

Figure 3-38: The Main Source of Income 80

Figure 3-39: The Living Burden Situation of the Town Users under Investigation and Study 81

Figure 3-40: The Future Income Situation of the Town Users under Investigation and Study 81

Figure 3-41: The Situation of Expenditure per Household in Towns 82

Figure 3-42: The Average Electricity Consumption and Electrovalence per Family of the Users under Investigation and Study 83

Figure 3-43: The Situation of Electricity Charge Disbursement of Town Users under Investigation and Study 83

Figure 3-44: The Degree of Satisfaction with Electrovalence of the Town Users under Investigation and Study 84

Figure 3-45: The Living Electrovalence Level Expected by the Town Users under Investigation and Study 84

Figure 3-46: The Analysis of the Town Users’ Demand for Universal Service of the Electric Society 84

Figure 3-47: County Enterprises Belong to State Grid Corporation 88

Figure 3-48: County Enterprises Belong to Southern Grid Corporation 88

Figure 3-49: The Operation Mode of Power Social Universal Service 101

Figure 3-50: Flow Chart of DBOT Project 107

Tables

Table 2-1: The Arrangement of the Key Investigation 22

Table 3-1: Summary of the Situation of Domestic Impoverished Population 27

Table 3-2: The Number of Unelectrified Natural Villages, Household, Population and the Situation of Low-Income Population 28

Table 3-3: Average Annual Income per Person in Qinghai Province, 2001–04 33

Table 3-4: Comparison between Low Person Insured and Province’s Average Annual Income per Person 33

Table 3-5: The Annual Average Power Consumption per Person in Qinghai, 1999–04 35

Table 3-6: The Situation of Maintenance and Running Cost of Rural Grid, 2000–04 36

Table 3-7: Contrast between Maintenance Cost of Rural Network and the Growth of Quantity of Sold Electricity 40

Table 3-8: Contrast between Unit Cost of Actual Quantity of Sold Electricity and Electrovalence in Rural Network 41

Table 3-9: Contrast between Reasonable Demand Cost and Actual Cost of Running and Maintenance in Rural Network 43

Table 3-10: Comparison of the Unit Sold Electricity Quantity under the Rural Network’s Reasonable Demand Cost and the Electrovalence 44

Table 3-11: The Situation of Rural Network’s Reformation and the Investment in Solving the Nonelectricity Villages’ and Households’ Electricity Problems in Recent Five Years, 2000–04) 45

Table 3-12: Evaluation of Investment in the Light Electricity Generation and Electrification Project 49

Table 3-13: Annual Radiation and Available Hours for Each Capital City 55

Table 3-14: The Initial Investment Constitution of the Stand-Alone Photovoltaic Power Generating System 62

Table 3-15: The Cost of Biomass Power Generation 64

Table 3-16: The Development of Wind Power in the World, 1983–2003 65

Table 3-17: Cost Efficiency Analysis of the Independent Power Generation System in Tibet’s Dispersive Power Source 66

Table 3-18: Cost Efficiency Analysis of the Independent Power Generation System in Gansu’s Dispersive Power Source 66

Table 3-19: Cost Efficiency Analysis of the Independent Power Generation System in Yunnan’s Dispersive Power Source 66

Table 3-20: The Comparison about Mode of Accreditation and Mode of Funds 102

Table 3-21: The Comparison about Cost Compensation Mode and Self-Digestion Mode 104

Table 3-22: Comparison between Modes of Funding 104

Units of Measure

GW / Gigawatt
GWh / Gigawatt-hour
kgce / Kilograms coal equivalent
kgoe / Kilograms of oil equivalent
km / Kilometer
kV / Kilovolt
kW / Kilowatt
kWh / Kilowatt-hour
kWp / Kilowatts peak
MVA / Megavolt-amperes
tce / Tons of coal equivalent

Acronyms and Abbreviations

CSG
DBOT / Design-operate-build-transfer
FCC / Federal Communications Commission
PV / Photovoltaics
SERC / State Electricity Regulatory Commission
SGCC / State Grid Corporation of China

Foreword

Because the government in solving food and clothing for the poor population has made great achievements, the United Nations will no longer provide food aid to China from January 1, 2006. This shows that the achievements of socialist reform are there for all to see, but there are many problems about poverty-stricken population. Solving the problem of poverty is not only the requirement to build a harmonious society, but also to build a service-oriented government.

After the documents of “State Council issued a circular power reform program” (National Development [2002] 5) explicitly brought the implementation of the power community service policy into the ambit of the state power regulation, the issue of the power universal service will attract people’s attention again. The implementation of power social universal services will be an important measure for meeting the people’s demand and promoting national economy stably and healthy, as well as a historic responsibility that have to be assumed after the reconstruction of the urban and rural power networks and preliminary establishment of the perfect electricity supply network.

In March 2006, the “NPC and the CPPCC sessions” was held, on which “the construction of new rural areas” was mentioned in the agenda. However, energy is the foundation for the development of economy, not to mention the “new rural construction” if neglecting of electricity power supply. Therefore, China should focus on rural electric universal services, and should walk in the forefront of “the construction of new countryside.”