【Report Name】：	Study Report on Cross-subsidy Scheme for Public Off-grid Power Systems of Renewable Energies
【Issued Date】：	Sep.2007
【Payment mode】：	Paper
【Price】：	Negotiation Separately
【Contact Phone】：	62558293-0

【Abstract】
The Chinese government has been highly concerned about the energy supply for remote rural areas, besides grid extension, it has also organized other projects for rural electrification through renewable energy, such as “SDDX”; up to end of 2006, the total installation of PV systems in China reached 80 MW. With the proceeding of such projects, the problem of high electricity price of the off-grid renewable energy supply becomes significant, the expensive operation and maintenance bring great difficulty for the enterprises, while the high price prohibits the purchasing ability of residents in the remote areas, hence, seeking a functional cross-subsidy mechanism shapes up into an urgent task for the development of applying and encouraging China’s off-grid renewable energy supply system, so as to balance the production cost and revenue generated from charging the users based on the local grid energy price (the users are paying a lower price than the cost of renewable energy production).
Along with the implementation of China’s Renewable Energy Law, series of regulations have been developed; the cross-subsidy policy has been initiated and launched. The research project has conducted a large amount of research and study on the current cross-subsidy mechanism of China, to provide strategies for further improvement and completion of the current mechanism, and compare the production cost of the off-grid energy supply system and cross-subsidy mechanism, including:
 ♦ Analysis and comparison on the renewable energy cross-subsidy mechanisms of different countries, focusing on the current policy of US, UK and Germany.
 ♦ Analysis on the features of the current regulation on renewable energy in China, with the case study on the “pilot Project of the Brightness Project” in Inner Mongolia, introducing the cross-subsidy mechanism and its implementation during the practice of the project.
 ♦ Case study on the operational cost calculation of the off-grid energy supply systems by the contractor for Xinjiang, Qinghai and Gansu projects, along with the study on first period project of “Sino-German Financial Cooperation on Village Solar Energy” in Qinghai and Xinjiang, introducing the calculation of cross-subsidy for off-grid energy supply system based on consumption, with analysis on the advantages and problems of the method, as well as the feasibility study on the subsidy calculation based on capacity installation.
 ♦ Based on several surveys and case studies, we analyzed the advantages and problems of China’s current cross-subsidy mechanism for off-grid renewable energy supply systems; provide suggestions for improvement, and a series of strategic options and improvement options, listing the suggested mechanisms by experts in different provinces.
 ♦ Based on the relevant planning for electrification, we calculated and analyzed the impact of the cross-subsidy, for providing energy to the last one million residents lacking access to electricity though renewable energy.

【Content】
1　 Background
2　 Objectives And Content Of The Project
3　 International Renewable Energy Incentive Policies
3.1  Incentive Policies Of Pv Installation In The United States
3.2  Pv Incentive System In Germany
3.3  Pv Incentive System In The United Kingdom
4.　Subsidy Regulation And Case Studies On China’S Public Off-Grid Renewable Energy System Subsidy
4.1  Relevant Regulation On China’S Public Off-Grid Renewable Energy System
4.2  Analysis On Subsidy Mechanism Of The Pilot Project For “Brightness Project” In Inner Mongolia
5.　Supply Cost And Price Subsidy Research On Off-Grid Public Energy Supply Systems
5.1  Supply Cost Analysis Off-Grid Public Energy Supply System In Xinjiang “Sddx” Project
5.2  Cost Analysis Of The Off-Grid Renewable Energy Supply System Of Qinghai And Gansu
5.3  Price Subsidy Calculation Of Sino-German Financial Cooperation Project Period 1 In Qinghai
5.4  Calculation Of Cross-Subsidy Sino-German Financial Cooperation Batch 1 In Xinjiang
5.5  Cross-Subsidy Impaction Analysis Of Sino-German Financial Cooperation Project Qinghai Batch One And Xinjiang Batch One
6　 Suggestions To The Cross-Subsidy Mechanism Of The Public Off-Grid Re Power Systems Of China
6.1  The Present Cross-Subsidy Mechanism Of The Public Off-Grid Re Power Systems Of China And Its Management
6.2  Suggestions On Cross-Subsidy Of Public Re Off-Grid System Management And Implementation In Qinghai Province
6.3  Suggestions On Cross-Subsidy Of Public Re Off-Grid System Management And Implementation In Xinjiang Autonomous Region
6.4  Suggestions On Cross-Subsidy Of Public Re Off-Grid System Management And Implementation In Gansu Province
7　 Study On Re Electrification Cross-Subsidy Of China Unconnected Area
8　 Suggestions And Conclusions
Reference
Annex