Financing Study On The Shanghai Juhe Biomass Power Generation Project

With the rapid development of the China economy, the demand for electricity has increased significantly. Therefore, satisfying this demand has become a more challenging subject day by day. The State Grid promised 8 services to the public in year 2007, one of which is to generate clean power, or more specifically, to provide 1.06 billion KWh "green power" to the public society. To fulfill this commitment, biomass power plants projects in China are speeding up completely.Developing renewable energy also has strategic significance in China's commitment to the world carbon emission and in the restructuring China's economic structure.Currently, only 0.5% of the total installed capacity of renewable energy in China attributes to biomass power energy generation, which is significantly lower than the world average of 25%. Therefore, China still have great scope for development on biomass power energy generation. According to the eleven's Five-Year Plan, China is going to achieve the installed capacity of 5.5 million KWh for power production from biomass in year 2010. According to the Mid to Long Term Renewable Energy Development Plan, China is going to achieve the installed capacity of 30 million KWh for power production from biomass in year 2020. All these proves that power production from biomass, as a significant player in renewable energy, has great potential in China.However, due to the restrictions of the current economic environment in China, funding is a major challenge for biomass power plants projects. After an in-depth study of various factors of funding sources and the funding structure of domestic and international renewable energy projects, the author provides in this paper a funding plan for the Shanghai Juhe Biomass Power Generation Project. The paper provides theoretical reference and practical implementation details to the fund raising for the China biomass power generation industry, and is also a valuable reference for similar projects.The paper covers both theories and practice in its six sections. Section One is an overall introduction; Section Two provides an in-depth analysis of the funding status of domestic and international biomass power generation industry; Section Three analyses the financial environment for the Shanghai Juhe Biomass Power Generation Project from both the macro and micro perspective; Section Four summarizes the various funding plans for the Shanghai Juhe Biomass Power Generation Project through analysing the available options; Section Five provides constructive suggestions regarding how to improve the funding structure of the biomass power generation industry in China; Section 6 is an overall summary.