Renewable energy – use of wind power to replace fossil fuels on the electric grid
Description of Project
This 50 MW wind power project is comprised of 67 wind turbines located near the border with Inner Mongolia. The project reflects ongoing efforts to provide low-carbon power for China’s economic development. The project provides electricity to the local grid in rural China, displacing power from polluting fossil fuel-fired generators and controversial large hydropower projects.
Project Type
Renewable Energy
View detailed project specification
Project location
Ningxia Hui Autonomous Region, China
Project proponent
Ningxia Tianjing Wind Power Generation Electricity Joint Stock Co., Ltd.
Credit type
Voluntary Carbon Standard VERs
Total emission reductions
17,500 tonnes CO2e between 2006 and 2007
Additionality Test
Established using the CDM Additionality Tool. Coal-fired electricity generation remains the least cost option in the project region. Based on prevailing power purchase prices IRR analysis shows that the project would not reach the government-mandated 8% benchmark without carbon finance. In addition, no wind farms had been launched in the region without the expectation of carbon credit sales, and this project was the first in Ningxia to use Chinese wind technology, increasing the apparent implementation risk.
Social and environmental considerations
The project contributes to sustainable development by reducing greenhouse gas emissions, compared to a business-as-usual scenario. In addition, the project reduces other pollutants resulting from the power generation industry in China, creates local employment opportunities and reduces poverty in Ningxia, a region with relatively low household incomes. In addition, by using locally manufactured wind turbines, the project contributes to the growth of China’s indigenous renewable energy industry.
Current status of project
Completed
Commencement of project operation
February 2006
Vintages
2006-2007
