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China: Xiaogushan Hydropower
(Prototype Carbon Fund)

UNFCCC Reference No.: 0378

3 Project Documents

The People’s Republic of China will host the creation of a 98 megawatt run-of-river hydroelectric plant on the Heihe River in the Sunan Yugur Autonomous County of Zhangye City, Gansu Province. The site is expected to contribute over 350 gigawatt hours per year to China’s energy network when it opens in 2006. The plant is being built by Xiaogushan Hydropower Company Ltd.

The Xiaogushan Hydroelectric Power (XHP) site lies in Xishui township, in Sunan county, 86 kilometers from Zhangye City, approximately 600 kilometers northwest of the provincial capital, Lanzhou, Gansu province.

The mechanical principle behind the XHP is the use of flowing water, relying on the Heihe River’s current flow, to run an electrical generator. With little grass and almost no trees or shrubs along the river banks, the project poses minimal threat to the surrounding ecosystem. The XHP’s design nevertheless requires minimal alteration of the present geography, and site construction should leave no long-term environmental impact.

Project designers expect to reduce carbon equivalent emissions by more than 3.7 million tons (tCO2e). The Prototype Carbon Fund is negotiating to purchase 2 million tons of this emission reduction through the Kyoto Protocol’s Clean Development Mechanism (CDM). In addition to reducing emissions of greenhouse gases (GHGs) and improving the local air quality by displacing coal-fired power generation, the XHP project will address and ease power shortages in the Zhangye network by increasing the supply of clean power.

The XHP will also generate employment in the surrounding region because of site maintenance and operation. The clean power generated by the XHP project will further contribute to sustainable development in the Gansu Province by providing reliable energy to investors, business, and consumers. Reliable energy will stimulate job and income growth and increased commercial activity in the environmental, health, and other sectors of the local economy.


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