China’s trial green zones show power of asset-backed financing
- Pilot projects in six provinces are delivering cheaper energy while unlocking billions in funding through green loans
- Experts say early success could be used as a model in other parts of the country to help meet 2060 carbon target
The trial, in a suburb of Guiyang, the provincial capital of Guizhou in the southwest, has seen rooftop solar panels installed on residential and commercial buildings, along with underground pumps to deliver water from a nearby river at a constant 20 degrees Celsius (68 Fahrenheit) in winter and summer.
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The system uses solar power to cool the water to 7 degrees in summer and heat it to 75 degrees in winter, letting it circulate in pipes inside the buildings. It also compresses air to save energy and release it when the solar power is insufficient.
Temperatures in Guizhou can fall as low as 0 degrees and, like other provinces in southern China, central heating systems are rare or non-existent. The trial has been running since late 2017 in Guiyang, where the cost of heating a household over the three winter months was about 3,600 yuan (US$550). In contrast, the annual cost of the new system is about 4,000 yuan, according to the local newspaper.
Construction costs for the system were 45 per cent lower compared to a building with central air conditioning.
Local governments in Guiyang plan to build 10 such projects to supply energy for the region’s 220,000 residents, at a total investment of 2 billion yuan (US$305 million).