CASE STUDY

A Virtual Power Plant that Creates Real Energy

Lessons

Creating a replicable model.

The structure of Guangdong’s efficiency power plant model was straightforward. The project created a trust company and a project management office with distinct but complementary tasks in facilitating energy efficiency projects. Together, they were able to exceed project expectations, demonstrating that a simple structure with clear-cut delineations can ease implementation, especially in areas where the efficiency power plant is relatively unknown. Project implementation was easier for subproject borrowers because it simplified the whole efficiency power plant process, from loan request to completion. Other municipalities can easily replicate the model.

Savings and on-lending.

Subborrowers who successfully implement efficiency power plant subprojects can anticipate both energy and financial savings. Their loans yield monetary benefits, and full repayment is rolled over to the next borrower, expanding loan availability for other agencies seeking funds to implement their own efficiency power plant projects.





Disclaimer

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.




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