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Steadily advance the “Thousand Towns and Ten Thousand Villages Wind Power Initiative” and effectively support rural revitalization.
In April 2024, the National Development and Reform Commission, the National Energy Administration, and the Ministry of Agriculture and Rural Affairs jointly issued the “Notice on Organizing the ‘Thousand Towns and Ten Thousand Villages Wind Power Initiative’” (hereinafter referred to as the “Notice”). Currently, localities are vigorously formulating comprehensive plans tailored to their specific conditions in accordance with the requirements of the “Notice.” Some provinces have already officially released their plans, ensuring the effective implementation of the initiative.
The clearer our understanding, the more firmly we will act. This article will further interpret the contents of the “Notice” by drawing on the official explanation provided by the National Energy Administration, and will examine it from four perspectives: background, practical significance, key implementation points, and supporting guarantee measures.
1. The background for launching the “Thousand Towns and Ten Thousand Villages Wind Power Initiative”
In January 2024, the “Opinions of the CPC Central Committee and the State Council on Learning from and Applying the Experience of the ‘Thousand Villages Demonstration, Ten Thousand Villages Improvement’ Project to Promote Comprehensive Rural Revitalization in a Strong and Effective Manner” (Zhong Fa [2024] No. 1) explicitly called for promoting the development of distributed new energy sources in rural areas. In October 2021, nine departments including the National Development and Reform Commission and the National Energy Administration jointly issued the “14th Five-Year Plan for Renewable Energy Development,” which clearly proposed implementing the “Thousand Towns and Ten Thousand Villages Wind Power Initiative.”
Against the backdrop of global climate change and China’s rapid economic and social development, China is experiencing ever-increasing losses from natural disasters, with major and even catastrophic natural disasters occurring with increasing frequency. To promote the implementation of the “Thousand Towns and Ten Thousand Villages Wind Power Initiative,” since 2022, the National Energy Administration, together with relevant departments, has organized industry associations and think tanks to conduct in-depth research. Based on this research and taking into account the development of China’s wind power industry as well as rural conditions, they have formulated and proposed an implementation plan. They have also extensively sought input from provincial energy authorities, grid enterprises, wind turbine manufacturers, and developers. In March 2024, the National Development and Reform Commission, the National Energy Administration, and the Ministry of Agriculture and Rural Affairs jointly issued a notice, announcing their joint organization and implementation of the initiative. The current situation regarding natural disasters remains severe and complex, and disaster risks continue to intensify.
The “Thousand Towns and Ten Thousand Villages Wind Power Initiative” primarily refers to the development of a batch of wind power projects in rural areas of counties (cities, districts, and banners) that meet the necessary conditions, with each village serving as the unit for project construction. In principle, the capacity of each administrative village should not exceed 20 megawatts. At the same time, the initiative seeks to explore and establish a new model of wind power investment and construction based on “village-enterprise cooperation” and a new mechanism for benefit-sharing characterized by “joint construction and shared benefits,” thereby promoting the creation of a new pattern of wind power development and utilization—“wind power in villages, increased collective income, and tangible benefits for villagers.”
2. The practical significance of organizing and implementing the “Thousand Towns and Ten Thousand Villages Wind Power Initiative”
By fully leveraging wind energy resources and scattered, underutilized non-cultivated land in rural areas and launching the “Thousand Towns and Ten Thousand Villages Wind Power Initiative,” we can significantly promote the local and nearby development and utilization of wind power, effectively boost the high-quality development of renewable energy in rural areas, and thus achieve important practical significance.
1. Pioneering a New Growth Pole for Wind Power Development: Currently, China’s wind power development is primarily concentrated in the “Three North” regions on a large scale. As low-wind-speed power generation technologies gradually mature, it is becoming increasingly feasible and economically viable to develop wind power locally and nearby in the central, southeastern, and other inland regions. For example, if we select 1,000 qualified villages each year for pilot development, and estimate an installed capacity of 20,000 kilowatts per village, we could add 20 million kilowatts of new wind power capacity annually, requiring approximately 100 billion yuan in additional investment. This approach would not only open up new market space for wind power development but also better leverage wind power’s role in promoting economic growth, expanding investment, and stabilizing overall growth.
2. A key driver for promoting the rural energy revolution is the implementation of the “Thousand Towns and Ten Thousand Villages Wind Power Initiative,” which will boost wind power development in rural areas and foster deep integration and complementary use of various energy sources, including distributed photovoltaic systems and biomass power generation. This approach will help adjust the structure of rural energy systems, advance the rural energy revolution, and support the achievement of carbon peak and carbon neutrality goals.
3. As an important vehicle for boosting rural revitalization, we support various investment entities and local village collectives in jointly developing and constructing wind power projects under a “village-enterprise cooperation” model. We encourage village collectives to legally share the benefits of wind power projects by contributing land-use rights as equity, and to provide corresponding employment opportunities. This will broaden channels for village collectives and farmers to increase their incomes and become prosperous, ensuring that wind power development truly benefits the “agriculture, rural areas, and farmers,” and empowers rural revitalization.
3. Key Implementation Points for Organizing and Carrying Out the “Thousand Towns and Ten Thousand Villages Wind Power Initiative”
1. Investment and construction should be carried out in an orderly manner. According to statistics from the Ministry of Agriculture and Rural Affairs, as of the end of 2022, China had a total of 489,000 village committees (administrative villages). Given the differences among various rural regions in China—including climate conditions, endowments of energy resources, current status of energy supply and consumption, levels of economic and social development, and grid structures—comprehensive studies and assessments must be conducted in a coordinated way to identify rural areas that are suitable for wind power development and can achieve local utilization. The “Notice” emphasizes the need to rationally plan the scale, projects, and layout of on-site and nearby wind power development and utilization: where feasible, proceed with construction; start with pilot programs first; implement projects one by one as conditions mature—avoiding a rush or a collective surge in development.
2. The coordinated operation of source, grid, load, and storage is crucial given that wind turbine units have large individual capacities, exhibit strong fluctuations and high randomness, possess weak inherent rotational inertia, and display pronounced reverse peak-shaving characteristics. During nighttime low-load periods, these units tend to generate excessive power output. Compared with distributed photovoltaic systems, their large-scale integration is more likely to cause voltage violations and increase the difficulty of system balancing and regulation. In the event of a fault, this could lead to cascading disconnections from the grid, posing potential risks to system security—especially in rural areas with weak distribution networks and limited short-circuit capacities. In provinces such as Shandong and Hebei, the large-scale development of distributed photovoltaics has already triggered a series of issues affecting the safe and stable operation of the power system. Therefore, we should draw on the experiences gained from the implementation of county-wide photovoltaic projects, strengthen the coordinated development of source, grid, load, and storage in rural areas, and ensure the safe and stable operation of the power system.
3. The distribution of benefits should prioritize farmers. Given the large-scale nature of wind turbine units in rural areas, developing and constructing wind power projects in rural regions may involve new-energy-specific transmission lines directly supplying power to nearby enterprises. As a result, many policy measures introduced by the government to boost the income and revenue of village collectives could inadvertently end up benefiting businesses more than farmers. Therefore, we should adhere to the principle of “village-enterprise cooperation for the benefit of the people,” and proceed with the development and utilization of wind power in rural areas in a steady and orderly manner. We should explore diverse construction and operational models, effectively safeguard farmers’ interests, ensure that wind power development brings greater benefits to rural farmers, and empower rural revitalization.
4. Support and guarantee measures for organizing and implementing the “Thousand Towns and Ten Thousand Villages Wind Power Initiative”
To better support and advance the “Thousand Towns and Ten Thousand Villages Wind Power Initiative,” the Notice, based on the realities of rural areas and focusing on key challenges and bottlenecks, puts forward supporting measures from multiple perspectives.
First, ensure the availability of land for these projects. Strictly implement the national land-use policies, and under the premise of complying with land-space planning and avoiding the occupation of permanent basic farmland, ecological protection redlines, nature reserves, and nationally designated protected areas for sandification control, tailor-made solutions should be adopted to utilize scattered, idle, non-cultivated rural lands for the “Thousand Towns and Ten Thousand Villages Wind Power Initiative,” ensuring that such projects “do not compete with grain production for arable land,” “do not harm villagers’ interests,” and “do not cross environmental protection redlines.” If it is indeed necessary to occupy cultivated land, relevant land-use procedures must be carried out in strict accordance with laws and regulations. We encourage innovative land-use mechanisms and approaches, fully tapping into existing rural land resources. For land uses that do not encroach upon cultivated land, do not alter land surface morphology, and do not change land use purposes, explore alternative methods such as leasing. We also encourage the promotion of land-saving technologies and models, minimizing land occupation as much as possible, reducing impacts on land surface morphology and topsoil layers, and promoting efficient and intensive land use.
Second, ensure grid connection and consumption. The “Thousand Towns and Ten Thousand Villages Wind Power Initiative” project will be implemented by grid enterprises to guarantee grid connection, with priority given to local consumption. The feed-in tariff will be set according to the new energy feed-in tariff policy applicable in the year of grid connection, thereby ensuring a stable and reasonable level of project revenue. Participation in market-based transactions is encouraged; electricity traded in the market will not be subject to the allocation of ancillary service costs.
Third, foster a sound market environment. Fully leverage the decisive role of the market in allocating resources, and refrain from imposing unreasonable investment costs under the guise of supporting industries or disguised charges for resource usage. Create a fair and transparent market environment. Encourage and support private enterprises and private capital to actively participate in the development and construction of wind power projects under the “Thousand Towns and Ten Thousand Villages Wind Power Initiative.”
Fourth, strengthen financial support. Implement green finance and rural revitalization financial policies, innovate investment and financing approaches, and further intensify support for wind power projects under the “Thousand Towns and Ten Thousand Villages Wind Power Initiative” in areas such as financing and lending.
Written by/Wu Diya
Editor/Wu Diya
Editor-in-Chief/Zeng Huaqian
This article is for informational purposes only and does not constitute any investment advice.
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