Rural electrification program with renewable energy sources: An analysis of China’s Township Electrification Program

Given the fact that 1.4 billion people, over 20% of the world’s population, lack access to electricity, rural electrification remains a common challenge for many developing countries. The ‘Township Electrification Program’ launched by the Chinese government in 2002 is known as the world’s largest renewable energy-based rural electrification program in terms of investment volume ever carried out by a country. This study gives an in-depth examination of the program implemented in two selected townships in remote of rural areas of western China. The results showed that the implementation of the program possessed a technical orientation (e.g., construction of stations, installation of systems), and underestimated the financial implications (e.g., electricity tariff, households’ ability to pay electricity fees, financial management) as well as human resources available (e.g., training for operators, household participation) and institutional capacity building (e.g., good governance, regulatory framework) at the local level. Even though electricity was provided by the solar PV power stations, households still relied on traditional energy sources, such as candles and dry cell batteries, due to the fact that electricity service was unreliable and electricity supply was not sufficient for households’ needs.