1.6 Economic,Social and Ecological Benefits
The researches and practices that our research group carried out have promoted the paid use and three compensation mechanism for hydropower resources over the province.The hydropower development in Zhejiang has been stepped into a sound track and significant economic,social and ecological benefits have been achieved.
1.6.1 Economic Benefits
The application of the research achievements facilitated the hydropower resources management and enabled rapid development.Remarkable economic benefits were gained in three aspects as shown below.
1.Promoted scientific and methodical development of hydropower resources
The paid transfer,especially the competition mechanism ensured an open,just and fair hydropower resources market.The even transparent process of transferring the development right of hydropower resources enabled equal chance for every social member to participate hydro projects.The three compensation mechanism decreased the interest conflicts between the investors and the villagers during the transferring of hydropower development right.Thus the scientific and methodical hydropower development was ensured.The paid use and compensation mechanism restructured the economic and social order in exploiting hydropower resources and hydropower development in Zhejiang enjoyed rapid growth.The new small hydro installed capacity during tenth,eleventh and twelfth Five-Year Plan periods were respectively 107 MW,99.1 MW,and 45 MW.By the end of 2016,the total small hydro capacity installed in the past 15 years reached 396 MW,accounting for 51%of the overall small hydro installed capacity since the founding of the People's Republic of China.
2.Pushed forward the local economic development in the mountainous area
The paid use and three compensation mechanism link hydropower resources development up with the interests of relevant villagers,which complies with the requirements of building a new socialist countryside.The local farmers were particularly encouraged to invest in hydro plant construction so as to establish a long-term mechanism to increase farmers'income.The hydropower resources development has greatly driven the local economic and social development and provided the local people with a more effective way to make money and become rich.Taxes collected from hydropower development in Wencheng,Taishun,Jingning,Longquan and Qingyuan took up 15%-25%of the fiscal revenue of the local government.In Jingning,it once went up to 33%.Ten poverty-stricken“empty”villages in Lishui were lifted out of backwardness since the villagers became shareholders of Kangyang Hydro Plant with the land compensation.[7]In Taishun,the followup production and development funds for resettlers of Shanxi Reservoir were invested in the construction of Sanchaxi Hydro Plant,which enabled 15%annual fixed return for each resettler;hydro plants became social stabilizers for the countryside of the county.With an average installed small hydro capacity per capita of 1.1 kW in Jingning,hydropower became the important way for the farmers to get rid of poverty.Most farmers in Jingning are shareholders of hydro plants;therefore,the county was awarded by MWR the title of Rural Hydropower Land in China.Lishui established a steering group led by the mayor to make efforts on setting up a center for trading hydro plant property right.
3.Transfer fee efficiently used for resourcese xploitation and protection
The paid transfer of hydropower resources,starting from the piloting in Songyang and Suichang ten years ago,has become a major approach towards hydropower transferring over the province.The counties with rich hydropower resources,namely,Wencheng,Taishun,Xianju,Longquan,Qingyuan,Jinyun,Liandu,Yunhe,Suichang,Songyang,Jingning,Pan'an,Wuyi,Pujiang,Dongyang,Changshan,Jiangshan,Kaihua,Tonglu,Chun'an,Shengzhou,and Linhai,successively introduced and actively promoted the measures on paid transfer of hydropower resources.The total transfer fees amounted to 300 million yuan and were managed in separation between income and expenditure,mainly used for hydropower resources planning,surveying,and protection.The water administration of Guizhou Province and Jilin Province also explored the approach to paid use of resources for old and large hydro stations after learning from Zhejiang's practices.Some breakthroughs were made,playing an active role in normalizing hydropower resources management over China.
1.6.2 Social Benefits
1.Balanced and coordinated interests of all parties and lowered the risks of handling social conflicts
The application of the research achievements decreased the conflicts arising from developing hydropower resources,contributed to the sustainable hydropower development,strengthened the flood control and drought relief capacity,and also facilitated building a corruption free government.Before the application of three compensation mechanism,the hydropower resources development was in a great disorder in Zhejiang,as in many other provinces,where one could always find many problems like lack of transparency,great number of conflicts and petitioners,damages to resources and ecological environment,safety issues and frequent water disputes.The implementation of three compensation mechanism helped change the situation.The developers obtained contently the development right of water resources;disputes in rural areas were decreased;the pressures on water administration were eased;and peak period of water disputes was replaced by the current period of harmony and stability.The paid use and three compensation mechanism for hydropower resources not only effectively dealt with the relation between efficiency and fairness,but also eased the difficulty in addressing development policies.
2.Focused on scientific and rational development and realized sustainable development of hydropower resources
In recent years,attentions are not simply placed on the full exploitation of hydropower resources in Zhejiang.Instead,more attentions were given to scientific and rational development,and resources planning for small and medium-sized river basins and crossprovince rivers.Hydropower resources planning is regarded as the precondition for hydro development.The provincial water administration is responsible for the transfer of hydropower development right.In addition,as the minimum ecological flow guarantees the water for the living of aquatic animals and plants,biodiversity has been maintained.Water supply for people living in lower reaches has been raised from 65%to 90%since the economic compensation was carried out in developing hydropower resources.The sustainable development of hydropower was realized with these effective measures.
3.Facilitated building a corruption-free government and set up its sound image
Before the implementation of the paid use system,the right of developing hydropower resources was possessed by some government leaders.For the hydro plants enjoying good resources,some officials would become shareholders or provide convenience for their relatives or friends by taking advantage of their positions,which provoked negative reactions from the relevant people.The paid transfer system,however,made the process of transferring and developing hydropower resources transparent to the public,and all actions were taken under public oversight.Thus,the official or governmental staff were prevented from taking advantage of their positions to individual benefits,rent-seeking practices were decreased.As there is no room for project owners to transfer hydropower resources for their own profits,corruption is halted from the source.[8]
4.Proposed mixed property right system,and improved comprehensive flood control and drought relief capacity
The mixed property right system established by our research group solved the conflict between the private investment and public functions of hydro plants.The reservoirs constructed with private investment are not only for power generation,they also undertake flood control and drought relief in special time.The latter is more in the category of public goods.As predetermined in the paid use of resources,privately owned hydro plants and reservoirs should provide public services and take corresponding responsibilities.The role of government is to increase research on the scheduling of public goods not only to make them meet the public needs but also to raise the economic benefits of privately owned hydro plants.The total reservoir capacity in Zhejiang reaches 9.819 billion m3,and solid foundations have been laid for flood control and drought relief in the past decade with such contributions as basic flood control system,non-engineering defense measures,and improved rainfall warning system.[9]
1.6.3 Ecological Benefits
Our research group agrees that the development of hydropower resources brings forth very good ecological benefits by ensuring water supply safety for hilly areas,protecting ecological flow,and reducing emission of greenhouse gases like carbon dioxide by replacing some coal-fired power stations.
1.Ensured ecological flow and restored biodiversity
The established measures of minimum ecological flow and pulse flow ensures the minimum water demand for rivers and provides material basis for improving water quality by treating the pollutions in and outside rivers.Through artificial reproduction and release of rare aquatic animals,the aquatic ecosystem has been recovered and a comparatively stable,healthy and open river ecological system has been established to maintain the biodiversity and ecological balance in long run and finally aim at a harmonious human and water environment.
2.Improved water quality of water sources and guaranteed water supply safety
Many hydro plants are regulated by reservoirs.These reservoirs supply water for power generation and local people's living and production as well.So,hydropower development can also help adjust economic structure and optimize allocation of productive force by planning and coordinating water use for living,production and ecological purposes,and prioritize living water consumption for rural and urban residents.The reservoirs of small hydro plants are also utilized for scattered water supply in mountainous area.As the quantity and quality of rural water supply are improved,a water supply security system covering the whole province has been established,where rural water supply is improved from smallscaled scatted type to moderately concentrated type,with focuses moved from routine quantity and quality issues to standardization of water volume,water quality and water pressure.
3.Reduced carbon emission and relieved greenhouse effect
Hydropower development is currently the first option for China to save energy and reduce carbon emission.According to the widely accepted international technical standard,1 kW·h hydropower could replace 497 coal(355×700/500=497);1,000 kW·h hydropower could be traded for 0.8 t carbon dioxide emission.One ton of emission reduction could sell at USD 10.The developed hydropower resources have already reached 6.6868 million kW.If calculated at annual operation of 2,500 hours and annual power generation of 1.67 billion kW·h,it means that 0.64 million tons of coal would be saved,equaling a carbon dioxide emission reduction of 1.5 million.
[1]Please refer to the Interview with Director Tian Zhongxing:Implementing Scientific Progess Concept and Managing Affairs in Accordance with Laws to Facilitate Scientific and Orderly Development of Hydropower Resources,published on the bottom page of China Water Resources News issued on May 15,2009.The Three Compensation Mechanism specificly means to solve the relationship between the investors,local government,residents and ecological protection by resources,economic and ecological compensations.
[2]Zhejiang was the first province in China to implement the 6%VAT policy of the Ministry of Finance on small hydropower,abiding by the Notice on Implementing 6%Value-added Tax Policy for Small Hydropower Enterprises(ZSZ〔1998〕No.390).Many provinces and municipalities have not yet implemented this policy.
[3]At the end of 1990s,some small hydropower networks were taken over by the State Grid,and how to feed the electricity generated by the hydro plants managed by the water administration to the power grid became a big problem.It was at that time that a dispute over private,collective,or state developers for hydropower resources appeared.Particularly,high concerns were aroused when the rural power network in Lishui,Zhejiang was taken over by the State Grid.
[4]In 1990s,in Sichuan and Zhejiang,two provinces leading in hydropower development,a heated debate was under way on the investors of hydropower resources.Some experts in Sichuan strongly held that hydropower resources could only be owned by the state,while in Zhejiang private capital was allowed to finance hydropower resources development.The focus of the dispute was on how to play the public service functions of hydropower.
[5]Wujiang Hydropower Co.,Ltd.owns seven hydro plants in Wujiang River basin,including Hongjiadu of 600 MW intalled capacity,Dongfeng of 695 MW(including 125 MW expanded installed capacity),Suofengying of 600 MW,Wujiangdu of 1,250 MW(including expanded installed capacity),Goupitan of 3,000 MW,Silin of 1,050 MW,and Shatuo of 1,120 MW,totaling 8,315 MW.
[6]See news report on website http://news.zj.com/detail/1161464.shtml.
[7]See news report on Zhejiang Daily issued on June 30,2005.
[8]See relevant news reports.For example,an article on Wenzhou City News issued on July 9,2003—The Aftermath of a Hydropower Station Accident,reported the riot on the construction site of Gaocheng Hydro Plant in Pingyang on May 9,2000,and under the supervision of the municipal people's congress members,over 10 offenders were arrested for breaking the laws for private profits.The construction of the plant discontinued until early 2002.
[9]Ye Zhou.Analysis and Study on Policy Gradient for Rural Hydropower Industry.China Water Power&Electrification,2003(8).