By Li Jugen Executive vice chairperson 
                        and general secretary of CSHE
                      
                         ---Honorable vice minister Mr Hu Siyi, 
                        
                           Distinguished guests, ladies and gentlemen, 
                        good morning!
                        
                           After the meticulous preparation, the 
                        inaugural ceremony of SHP special committee of China Society 
                        of Hydroelectric Engineering is being held here today. 
                        First, I would like to, on behalf of SHP special committee, 
                        to express my congratulations on its establishment. Besides, 
                        I want to extend my heartfelt thanks to Mr. Hu Siyi, vice 
                        minister of the Ministry of Water Resources, who has came 
                        for the ceremony in person and delivered an encouraging 
                        speech, as well as to all the leaders and other participants 
                        for coming all the way for the ceremony. My thanks also 
                        go to the National Research Institute for Rural Electrification 
                        and the organizing committee for their painstaking efforts. 
                        
                        
                           As is known to all, China ranks the 
                        first in the world in water resources. 
                        In China, the theoretical potential water resources amount 
                        reaches 694 million kW with the annual generation of 6080 
                        billion kWh. The technical exploitable amount reaches 
                        542 million kW with the annual generation of 2470 billion 
                        kWh. And the economic exploitable amount reaches 402 million 
                        kW with the annual generation of 1750 billion kWh. Meanwhile, 
                        China is also rich in small hydropower with the potential 
                        small hydropower amount ranking first in the world. According 
                        to the latest survey, the technical exploitation amount 
                        of small hydropower resources reaches 128 million kW and 
                        covers more than 1600 counties in 30 provinces(regions 
                        or cities), 65% and 50% of which can be respectively found 
                        in the western regions and southwest of China, mainly 
                        covering provinces of Hunan, Hubei, Guangdong, Guangxi, 
                        Henan, Zhejiang, Fujian, Jiangxi, Yunnan, Sichuan, Xinjiang 
                        and Tibet. The exploitable small hydropower resources 
                        of those provinces account for about 90% of the whole 
                        country. 
                        
                           China's hydroelectric power generation 
                        starts with the development of small hydropower. China's 
                        first hydropower station Shilongba hydropower station 
                        built in 1912 in Kunming, Yunan province, is categorized 
                        as small hydropower. 
                        
                           Due to constraints including technology, 
                        fund, system and the then productivity, China's small 
                        hydropower development didn¡¯t score remarkable progress 
                        until the end of the 1970s. Prior to reform and opening-up, 
                        the total installed capacity for China's small hydropower 
                        is less than 7 million kW. But after the reform and opening-up, 
                        China's hydropower development enters a stage of fast 
                        growth with the focus of the central government shifted 
                        to economic development. Because of small investment, 
                        short construction period, low risk, good performance, 
                        low operation cost, convenient power supply and favorable 
                        policies of the state, there comes a crave for small hydropower 
                        investment. Especially in the recent years, owing to electricity 
                        shortage and the need to construct the new countryside, 
                        private investment in small hydropower emerges like mushrooms 
                        after rain in spring. The construction speed increases 
                        year by year with the construction scale of more than 
                        5 million kW every year and commissioning scale of over 
                        1 million kW. By the end of 2007, the total installed 
                        capacity for China's hydropower reaches 0.145 billion 
                        kW with an annual generation of 486.7 billion kWh. While 
                        the total installed capacity for small hydropower is around 
                        50 million kW, accounting for 37% of the whole nationwide, 
                        with an annual generation of 150 billion kWh. The number 
                        of small hydropower stations exceeds 45,000. Because of 
                        its wide distribution, its role in basic power supply 
                        is far more significant. Currently, 1/2 of the national 
                        territory, 1/3 of the counties and 1/4 of the population 
                        get access to power through small hydropower. Its function 
                        of decentralized power supply is irreplaceable by those 
                        large grids. 
                        
                           The rapid development of small hydropower, 
                        on one hand, raises the level of rural electrification. 
                        Small hydropower stations are built in more than 1500 
                        counties, among which about 600 counties are mainly supplied 
                        by small hydropower stations, more than 200 counties with 
                        a complete system of power supply and over 3000 counties 
                        with small hydropower self-supply areas. It plays a vital 
                        role in the popularization of "substituting firewood 
                        with SHP". On the other hand, the rapid development 
                        of small hydropower promotes the social and economic development 
                        of the rural areas. It not only improves the farmers' 
                        living condition, but also helps a lot in solving the 
                        electricity issue and lifting people out of poverty. It 
                        makes great contributions to the construction of socialist 
                        new countryside. Thirdly, it helps counteract the natural 
                        disaster and guarantee the grid safety. With the advantages 
                        of "black start, convenient power supply", small 
                        hydropower stations help a lot in recovering power supply 
                        and effectively diminishing the damages when the main 
                        grid is paralyzed due to natural disaster. For example, 
                        in the blizzard and freezing disaster and May 12th earthquake 
                        in the first half of this year, rural hydropower, in the 
                        form of decentralized energy, plays a significant role 
                        in safeguarding the grid safety and disaster relief. Fourth, 
                        it promotes environmental protection, energy-saving, emission-reduction 
                        and the construction of resources-conservation society. 
                        Small hydropower stations are mostly located in the remote 
                        areas with small scale, small storage and little impact 
                        on environment. In 2007, the generation of small hydropower 
                        stations in China totals 150 billion kWh, which translates 
                        into a saving of 77 million ton coal and a reduction of 
                        150 million ton CO2 discharge. 
                        
                           In face of significant headway, China's 
                        small hydropower is also faced with difficulties and challenges. 
                        The admission of huge amount of private investment pushes 
                        forward the transformation from water resources to electric 
                        products. But due to the deficiency in policy and management, 
                        problems still come in a string. Serious problems include 
                        seize of resources, unlawful construction, project accident, 
                        deviation from and harm to people's interest, inappropriate 
                        planning and impact on the ecological environment. It 
                        is necessary for the country to step up efforts in policy-making 
                        and further strengthen the planning and management of 
                        small hydropower projects. 
                        
                           The central government and the State 
                        Council attach great importance to the issues of agriculture, 
                        farmer and rural area. It is pointed out at the 16th National 
                        Congress of the CPC that we should speed up the construction 
                        of socialist new countryside and small hydropower should 
                        be taken as important infrastructure. The development 
                        of small hydropower in various places has played an important 
                        role in the social and economic development. As an important 
                        component of power generation, small hydropower is different 
                        yet related to large hydropower in the aspects of technology, 
                        equipment and operation. As an important academic association 
                        in the field of hydropower, China Society of Hydroelectric 
                        Engineering is in necessary need of establishing a national 
                        SHP organization to cement the links with other associations, 
                        study the issues related to SHP development, promote the 
                        academic activities of SHP industry, raise the scientific 
                        and technological level of SHP industry and push forward 
                        the development of SHP to better serve the rural economy 
                        and rural electrification. After the approval by authorities, 
                        the SHP special committee is decided to be established. 
                        Following are some suggestions for the newly-established 
                        committee. 
                        
                           1.To better serve for the planning, 
                        construction and operation of SHP development and rural 
                        electrification, academic exchange and study as to major 
                        technological and economic issues should be conducted 
                        and apply it into the practical construction and operation. 
                        
                        
                           2.Popularize common knowledge, scientific 
                        and technological achievements of SHP as well as spread 
                        technological experience. 
                        
                           3.Consolidate the operation and exchange 
                        with related science and technology associations and experienced 
                        individual both at home and abroad.
                        
                           4.Actively engaged in the consultancy 
                        service and offer rational advice to related departments. 
                        Besides, the committee can also address itself in the 
                        project assessment, certification and consultancy to gain 
                        good economic performance, thus laying an economic foundation 
                        for the better development of the commission.
                        
                           5.Publish SHP magazines and journals 
                        and set up websites.
                        
                           6.Conduct on-job trainings to raise 
                        the academic level of the members of the committee and 
                        cultivate high-level individuals for the country.
                        
                           Apart from support from the superior 
                        departments, social sponsors and suitable membership fees, 
                        the funds can be gained from research project and consultancy 
                        service based on the advantages of R & D, talents 
                        and equipment of the affiliated institute. Under the concerted 
                        efforts, the SHP committee should be developed with unique 
                        characteristics, making contributions to the construction 
                        of socialist new countryside and the healthy and sustainable 
                        development of the national economy. 
                        At last, I wish the inaugural ceremony a great success 
                        and a nice stay for all the participants here in Hangzhou. 
                        Special thanks to you all for supporting China Society 
                        of Hydroelectric Engineering. And I hope we can win common 
                        development, friendly and harmoniously.
                        
                           Thank you!(2008-12-29)