A Virtual Power Plant that Creates Real Energy


Upon completion in 2011, Tranche 1 generated efficiency power plant capacity totaling 130 megawatts and energy savings totaling 651 gigawatt hours per year, exceeding the initial target of the entire investment program (i.e., 532 gigawatt hours of energy savings per year and an equivalent 107 megawatts in capacity).

In addition, the project demonstrated how efficiency power plants can be created in a systematic way. It tasked two entities for two aspects of program implementation. The Efficiency Power Plant Project Management Office appraised the technical feasibility of the subprojects and subproject implementation, whereas the Guangdong Finance Trust Company appraised the financial viability of subborrowers and on-lending. Thus, each entity complemented and supplemented the other. The project management office ensured smooth implementation and timely loan repayment by subborrowers, freeing loan availability for the next subproject borrower. This partnership facilitated more energy saving projects.

Moreover, the project facilitated the development of energy service companies. At the outset, two energy service company subborrowers implemented waste heat recovery and industry energy-efficiency retrofitting projects. By 2011, two other subborrowers had established their own energy service companies.

Guangdong’s efficiency power plant model has attracted attention from other municipalities in the country, and many made study visits to learn about it. Shandong and Hebei provinces have already replicated Guangdong’s model.


The views expressed in these articles are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.

Was this article useful?


Log in or register to post comments.