According to the national review of the hydraulic resources, the theoretical reserves of hydropower resources in China are 6.08 trillion kwh, the average power is 694 million kilowatts, the economically exploitable installed capacity is 402 million kilowatts, and the annual power generation is 1.75 trillion kwh. However, the geographical distribution is extremely uneven, with many western regions and few eastern regions, which are relatively concentrated in the southwest. The level of development varies greatly from area to area. By the end of 2009, the degree of hydropower development in China was 45.7%, of which the basic hydropower development in the eastern region was completed, the development in the central area reached 73%, while the development in the western area was low, only 23%. It is only 17% in the Southwest.
Development Opportunities The "Twelfth Five Year Plan" of China's power industry points out that priority should be given to the development of hydropower. The key objective of hydropower development is to continue to expedite the development and complete the early development of seven hydropower bases in the upper reaches of the Yangtze River, Wujiang River, Nanpanjiang Hongshui River, the middle and upper reaches of the Yellow River, and the North Mainstream, Xiangxi, Fujian, Zhejiang and Jiangxi Provinces, and the northeast, with relatively high levels of development. The development of six hydropower bases with planned installed capacity of over 200 million kilowatts and development rate of only 11%, including the Jinsha River, Yalongjiang River, Dadu River, Lancangjiang River, Nujiang River, and the upper reaches of the Yellow River. By 2020, the national hydropower capacity is expected to reach about 330 million kilowatts, and the national hydropower development level is 82%, of which the hydropower development in the western region will reach 67%. It is estimated that by 2030, the national hydropower installed capacity will be 450 million kilowatts, which exceeds the economically exploitable capacity. Outside Tibet, the basic hydropower development in the country has been completed.
It is expected that the next 15 to 20 years will be a good opportunity for China's hydropower construction. First, implementing the strategy for the development of the western region has created an important historical opportunity for hydropower development. China’s hydropower resources account for only 7% of the eastern region, and the development rate is greater than 50%; the western region accounts for more than 3/4, and the development rate is only 8%. The hydropower resources that can be exploited and utilized in the western region are very rich. The tasks of hydropower development are mainly Western Region. The development of western hydropower and the implementation of the “West-to-East Electricity Transmission†can not only meet the economic advantages of the economic development of the potential resource advantages of electricity into a reality. Second, the implementation of the strategy of sustainable development has opened up a vast space for the vigorous development of hydropower. The development of hydropower to replace coal-fired power generation will help reduce greenhouse gas emissions, improve resource utilization and the overall economic and social benefits. Thirdly, the next 20 years will be an important period of strategic opportunities for China. The economy will maintain a high growth rate, and the demand for electricity will increase. Under the current situation where the contradictions between coal and electricity are difficult to resolve, it is undoubtedly a good way to develop hydropower.
Problems faced Although China attaches great importance to hydropower construction, has invested a lot of manpower and material resources and has achieved great achievements that attract worldwide attention, there are still some problems in hydropower construction, mainly in the following aspects;
First, flood prevention standards are not high and floods and floods are frequent. More than 70% of the country’s fixed assets, 44% of the population, 1/3 of the arable land, and more than 620 cities are located in the middle and lower reaches of major rivers, and are still threatened by severe floods; already-built water conservancy projects cannot fully defend against floods. The flood control standards of major rivers are not high; with the development of economic society and urbanization, the wealth and population in the flood control areas have continued to increase, and the difficulty of flood control has increased; all of these have made flood control and security increasingly challenging.
Second, hydropower construction has caused adverse effects on the ecological environment. Hydropower development, especially the construction of large-scale hydropower projects, has caused unavoidable negative impacts on the environment, changes in rivers, river regimes, siltation, changes in the quality of water bodies, changes in local climate, induced geological disasters, threats to rivers' original ecosystems, and ecological problems. Protecting the two burdens is the responsibility that history has given us. In addition, due to the lack of processing capacity, water pollution is serious. In some areas, over-exploitation of water resources and over-exploitation of groundwater have caused a series of ecological and environmental problems such as river runoff, groundwater level decline, seawater intrusion, and land salinization.
Third, the degree of hydropower development is low and the energy supply is insufficient. The contradiction between supply and demand is prominent. By the end of 2003, the development of hydropower resources in the country accounted for only about 24% of the amount that could be exploited. At the same time that a large amount of valuable hydropower resources was lost, the country’s electricity and energy sources were lacking, and the phenomenon of power shortage was in many areas and even in large cities. Occurrences have caused no small losses and have constrained economic development. Some areas have even affected the normal life of the people.
Fourth, the management system for the development and utilization of hydropower resources is not smooth. At present, the government is still lacking in the management of hydropower resources, and the monitoring and management of hydropower resources development needs to be strengthened. Some hydropower projects are not developed according to the requirements of integrated river basin planning, and some hydropower stations emphasize one-sidedly the power generation benefits, not according to basins. The comprehensive dispatching of water resources is required to operate. There are monopoly phenomena in the power transmission industry in some regions. On the one hand, the power supply is tight. On the other hand, some small and medium-sized hydropower stations have no electricity to sell.
The fifth problem is that resources are destroyed, waste is serious, and energy efficiency is not high. Some water conservancy and hydropower projects that have comprehensive benefits such as flood control, irrigation, water supply, and ecology according to river comprehensive planning are simply developed according to the power generation project; some developers do not construct power stations according to the installed capacity of the river water power development plan, but use their own financial resources. Reduce the size of installed capacity; some developers do not follow the cascade planning, arbitrary construction and so on. All this has caused a huge waste of funds and financial resources, and even jeopardized flood protection, irrigation, drinking water for people and livestock, and ecological water security.
Sixth, it is a financial constraint. At present, the biggest constraint to China's hydropower construction is the lack of investment funds. Because of the shortage of funds, high loan interest rates and short loan periods in China, investors hope to be able to recover their investment within a short period of time in order to reduce investment risks, speed up capital turnover, and increase investment returns. The initial investment, construction period and investment recovery cycle are generally long, resulting in a long period of time for the loan funds, so it is difficult for hydropower construction to raise funds at home. Apart from loans from some international organizations and governments, other investors also rarely invest in hydropower in China for the same reasons.
Suggestions Although hydropower development has a certain impact on the environment, it is more positive ecological and environmental benefits. In response to people’s concerns and misunderstandings about the ecological environment brought about by hydropower development, starting from minimizing the impact of hydropower development on the environment, the plan proposes the whole process of hydropower development and the concept of ecological environmental protection, namely, river planning, survey and design. The entire process of construction, construction and commissioning operations will implement and strengthen ecological environmental protection, so as to achieve simultaneous planning, simultaneous construction, and synchronous operation.
The state must formulate appropriate preferential policies for hydropower investments, adopt lower-lending interest rates, extend the term of loans, reduce taxation and other standard economic adjustment measures, and encourage and ensure investment in hydropower. At the same time, it strives for international organizations and inter-government loans to actively support China's investment in hydropower projects with a combination of comprehensive benefits and relatively little ecological impact.
Governments at all levels plan the use of water resources in a unified way. In response to the problems in China's current hydropower development plan, government departments should gradually shift the focus of their work to environmental feasibility and development systematism. At the national level, the Ministry of Water Resources should improve the comprehensive development plans of the river basins as soon as possible, and proceed from the aspects of comprehensive utilization of irrigation, water supply, flood control, drought resistance, etc., and make a unified plan for the selection and demonstration of rational development and utilization of water resources.
Development Opportunities The "Twelfth Five Year Plan" of China's power industry points out that priority should be given to the development of hydropower. The key objective of hydropower development is to continue to expedite the development and complete the early development of seven hydropower bases in the upper reaches of the Yangtze River, Wujiang River, Nanpanjiang Hongshui River, the middle and upper reaches of the Yellow River, and the North Mainstream, Xiangxi, Fujian, Zhejiang and Jiangxi Provinces, and the northeast, with relatively high levels of development. The development of six hydropower bases with planned installed capacity of over 200 million kilowatts and development rate of only 11%, including the Jinsha River, Yalongjiang River, Dadu River, Lancangjiang River, Nujiang River, and the upper reaches of the Yellow River. By 2020, the national hydropower capacity is expected to reach about 330 million kilowatts, and the national hydropower development level is 82%, of which the hydropower development in the western region will reach 67%. It is estimated that by 2030, the national hydropower installed capacity will be 450 million kilowatts, which exceeds the economically exploitable capacity. Outside Tibet, the basic hydropower development in the country has been completed.
It is expected that the next 15 to 20 years will be a good opportunity for China's hydropower construction. First, implementing the strategy for the development of the western region has created an important historical opportunity for hydropower development. China’s hydropower resources account for only 7% of the eastern region, and the development rate is greater than 50%; the western region accounts for more than 3/4, and the development rate is only 8%. The hydropower resources that can be exploited and utilized in the western region are very rich. The tasks of hydropower development are mainly Western Region. The development of western hydropower and the implementation of the “West-to-East Electricity Transmission†can not only meet the economic advantages of the economic development of the potential resource advantages of electricity into a reality. Second, the implementation of the strategy of sustainable development has opened up a vast space for the vigorous development of hydropower. The development of hydropower to replace coal-fired power generation will help reduce greenhouse gas emissions, improve resource utilization and the overall economic and social benefits. Thirdly, the next 20 years will be an important period of strategic opportunities for China. The economy will maintain a high growth rate, and the demand for electricity will increase. Under the current situation where the contradictions between coal and electricity are difficult to resolve, it is undoubtedly a good way to develop hydropower.
Problems faced Although China attaches great importance to hydropower construction, has invested a lot of manpower and material resources and has achieved great achievements that attract worldwide attention, there are still some problems in hydropower construction, mainly in the following aspects;
First, flood prevention standards are not high and floods and floods are frequent. More than 70% of the country’s fixed assets, 44% of the population, 1/3 of the arable land, and more than 620 cities are located in the middle and lower reaches of major rivers, and are still threatened by severe floods; already-built water conservancy projects cannot fully defend against floods. The flood control standards of major rivers are not high; with the development of economic society and urbanization, the wealth and population in the flood control areas have continued to increase, and the difficulty of flood control has increased; all of these have made flood control and security increasingly challenging.
Second, hydropower construction has caused adverse effects on the ecological environment. Hydropower development, especially the construction of large-scale hydropower projects, has caused unavoidable negative impacts on the environment, changes in rivers, river regimes, siltation, changes in the quality of water bodies, changes in local climate, induced geological disasters, threats to rivers' original ecosystems, and ecological problems. Protecting the two burdens is the responsibility that history has given us. In addition, due to the lack of processing capacity, water pollution is serious. In some areas, over-exploitation of water resources and over-exploitation of groundwater have caused a series of ecological and environmental problems such as river runoff, groundwater level decline, seawater intrusion, and land salinization.
Third, the degree of hydropower development is low and the energy supply is insufficient. The contradiction between supply and demand is prominent. By the end of 2003, the development of hydropower resources in the country accounted for only about 24% of the amount that could be exploited. At the same time that a large amount of valuable hydropower resources was lost, the country’s electricity and energy sources were lacking, and the phenomenon of power shortage was in many areas and even in large cities. Occurrences have caused no small losses and have constrained economic development. Some areas have even affected the normal life of the people.
Fourth, the management system for the development and utilization of hydropower resources is not smooth. At present, the government is still lacking in the management of hydropower resources, and the monitoring and management of hydropower resources development needs to be strengthened. Some hydropower projects are not developed according to the requirements of integrated river basin planning, and some hydropower stations emphasize one-sidedly the power generation benefits, not according to basins. The comprehensive dispatching of water resources is required to operate. There are monopoly phenomena in the power transmission industry in some regions. On the one hand, the power supply is tight. On the other hand, some small and medium-sized hydropower stations have no electricity to sell.
The fifth problem is that resources are destroyed, waste is serious, and energy efficiency is not high. Some water conservancy and hydropower projects that have comprehensive benefits such as flood control, irrigation, water supply, and ecology according to river comprehensive planning are simply developed according to the power generation project; some developers do not construct power stations according to the installed capacity of the river water power development plan, but use their own financial resources. Reduce the size of installed capacity; some developers do not follow the cascade planning, arbitrary construction and so on. All this has caused a huge waste of funds and financial resources, and even jeopardized flood protection, irrigation, drinking water for people and livestock, and ecological water security.
Sixth, it is a financial constraint. At present, the biggest constraint to China's hydropower construction is the lack of investment funds. Because of the shortage of funds, high loan interest rates and short loan periods in China, investors hope to be able to recover their investment within a short period of time in order to reduce investment risks, speed up capital turnover, and increase investment returns. The initial investment, construction period and investment recovery cycle are generally long, resulting in a long period of time for the loan funds, so it is difficult for hydropower construction to raise funds at home. Apart from loans from some international organizations and governments, other investors also rarely invest in hydropower in China for the same reasons.
Suggestions Although hydropower development has a certain impact on the environment, it is more positive ecological and environmental benefits. In response to people’s concerns and misunderstandings about the ecological environment brought about by hydropower development, starting from minimizing the impact of hydropower development on the environment, the plan proposes the whole process of hydropower development and the concept of ecological environmental protection, namely, river planning, survey and design. The entire process of construction, construction and commissioning operations will implement and strengthen ecological environmental protection, so as to achieve simultaneous planning, simultaneous construction, and synchronous operation.
The state must formulate appropriate preferential policies for hydropower investments, adopt lower-lending interest rates, extend the term of loans, reduce taxation and other standard economic adjustment measures, and encourage and ensure investment in hydropower. At the same time, it strives for international organizations and inter-government loans to actively support China's investment in hydropower projects with a combination of comprehensive benefits and relatively little ecological impact.
Governments at all levels plan the use of water resources in a unified way. In response to the problems in China's current hydropower development plan, government departments should gradually shift the focus of their work to environmental feasibility and development systematism. At the national level, the Ministry of Water Resources should improve the comprehensive development plans of the river basins as soon as possible, and proceed from the aspects of comprehensive utilization of irrigation, water supply, flood control, drought resistance, etc., and make a unified plan for the selection and demonstration of rational development and utilization of water resources.
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