The Hongyan 8 MW Small-scale Hydro Project (hereafter referred to as “the proposed project”) is a run-of-river project which is located in the southwest of Guizhou Province, China. The proposed project utilises the indraught hydrological resources from Dewo River, branch canal of Tangtang-river and Tuolun reservoir. It’s a small-scale hydro project mainly for zero-emission power generation. The total installed capacity of the proposed project is 8 MW(consisting of two 4 MW hydro turbines). It is estimated that approximately 29,530 MWh per annum electricity will be fed into the Guizhou Provincial Power Grid from the proposed project activity. Guizhou Provincial Power Grid is an integral part of China Southern Power Grid (CSPG). The electricity currently generated by the grid is relatively carbon intensive, with an operating margin emission factor of 1.0038tCO2/MWh and a build margin emission factor of 0.5736tCO2/MWh. Thus the proposed project activity will achieve 23,290 tCO2e greenhouse gas (GHG) reductions per year during the crediting period. As a renewable energy project to produce zero-emission green power to the grid, the proposed project can contribute to sustainable development of the local community, the host country and the world by means of:

       To reduce GHG emissions compared to a business-as-usual scenario;             To alleviate power shortage and stimulate economy development in the local area, which is             one of the poorest areas in China；             To reduce environmental pollutants emissions resulting from power generation industry in             China Southern Power Grid compared to a business-as-usual scenario;             To create new job opportunities for the local people. 93 job opportunities could be arranged in             the construction period and 30 long-term job opportunities will be provided in the operation             To supply ecological water to the downriver.