As in many other provinces of the People’s Republic of China (PRC), Shanxi's rapid urbanization has fueled a rising demand for housing and urban infrastructure. Strong economic growth, higher incomes, and the privatization of housing has likewise driven an increasing demand for district heating that, because of the abundance of coal, has relied primarily on the burning of this fossil fuel. The adverse impacts of coal combustion on air quality, especially with most of the urban heating systems old and inefficient and lacking in emission control equipment, have been disproportionately high for women and the poor. Inadequate coverage of district heating in low-income urban areas, which has driven residents to use indoor coal stoves for heating, has also been a major cause of respiratory diseases. Women and small children, who tend to spend more time indoors, have been particularly vulnerable to these diseases.
To help solve heating issues related to the use of coal, the Asian Development Bank (ADB) approved a $100 million loan for the Shanxi Energy Efficiency and Environment Improvement Project in August 2012. The project aimed to extend energy-efficient district heating to over 270,000 residents in 5 highly polluted urban areas in Shanxi by replacing small, inefficient, and polluting inner city coal-fired boilers and household stoves with a highly energy-efficient combined heat and power (CHP) plant and large heat boilers with coal-mine methane (CMM) supply. Its anticipated impact was greater energy efficiency and a cleaner environment in Shanxi, and expected outcome was better air quality and reduced greenhouse gas emissions in the 5 urban project areas. Its intended outputs were (i) improved district heating supply in the urban areas of four project cities, (ii) expanded CMM gas supply and distribution system in Liulin county of Luliang city, and (iii) enhanced institutional capacity.
At completion, the project largely achieved its planned outputs and outcome. As of 2018, it heated a floor area of 7.57 million square meters, benefiting 297,600 residents with adequate and reliable heat from the district heating systems. It installed a CMM gas supply and distribution network capable of transporting 88.6 million cubic meters of CMM gas and servicing an additional 30,000 urban households and 134 commercial customers. Operation of the project facilities created 306 permanent jobs.
By 2018, the project’s energy savings from district heating systems reached 73,063 tons of standard coal annually. The operation of project heating facilities reduced annual emissions of carbon dioxide by 194,025 tons, sulfur dioxide by 3,195 tons, nitrogen oxide by 2,121 tons, and total suspended particulates by 12,588 tons. Air quality in the 5 project areas during the 2017–2018 heating season improved by 16% to 27% of the record in meeting Class II air quality standard during the 2011–2012 heating season.
The project, which had improved the energy efficiency of the district heating in the project area by 30%, resulted in clear benefits for women. Over 143,961 women benefited by switching from household stoves to the district heating system. A total of 52,800 women switched from coal to natural gas, avoiding indoor air pollution. The project provided 134 temporary jobs to women during construction and 107 regular jobs to women during operation. Furthermore, the project improved residents’ living conditions, especially in schools and hospitals during winter and reduced the heating costs thereby providing more benefits for the poor in the project areas.
The project had the Shanxi Provincial Government as executing agency and the 5 participating cities and counties ─ Jinzhong city, Licheng county, Qin county, Zhongyang county, and Liulin county ─ as implementing agencies.
