Excellent Cases-Welcome to China Resources (Holdings) Co.,Ltd

Wind and Photovoltaic Power for A Better Life

Qingyuan is a prefecture-level city in northern Guangdong. It boasts a long history and rich timber, hydroelectric power, mineral, and tourism resources, which have yet to be put to productive use due to lack of a well-thought-out development plan and investment . Qingyuan is one of China's pilot zones for anti-poverty reform, and has 1 national poverty county, 3 provincial key poverty counties, and 1 provincial mountainous poverty county. Helping these counties increase revenue, lifting poor villages out of poverty, and creating a happier life for the people are some of the most urgent challenges facing Qingyuan government. As a result, CR Power has held many meetings with the local CPC committee and government on energy investment, green development, and poverty reduction.

2018, CR Power's South China Region company entered into an agreement with the government of Lianzhou (a county-level division in Qingyuan) to jointly establish the region's first wind power company for poverty reduction. In particular, the government contributed local anti-poverty funds for a 17.5% stake in the company, and would funnel the dividends from the project back into its poverty alleviation programs. To lift the local community out of poverty as soon as possible, CR Power even started to pay dividends before the project went into operation. Total dividends paid amounted to RMB 4.98 million as of the end of 2019. This project has opened the door for similar efforts in Guangdong and Guangxi. By the end of 2019, the South China Region company has signed agreements with the governments of Qing yuan, Lianzhou, Fogang, Xinfeng, and Longmen in Guangdong and the county of Cangwu in Wuzhou, Guangxi. These projects have cumulatively distributed RMB 12.39 million in dividends to 4,000 households totaling 12,000 people. The Lianzhou project created construction jobs for the local villagers which increased their income. Existing village roads were also redesigned or widened for a more efficient transport system. This shows that anti-poverty wind power projects can not only increase local income, but also improve local infrastructures and economy. "All 120 families in our village, totaling 367 people, are now out of poverty!"Exclaimed Er Muxue, of the village of Ruoduo, Heishui County.

Heishui (tsochu in Tibetan, meaning pig-iron water) is a county in eastern Qinghai- Tibet Plateau under the administration of the Ngawa Tibetan and Qiang Autonomous Prefecture. Due to frequent occurrence of drought, heavy rain, hail, and other natural hazards, Heishui has been designated as a national poverty county three times. In 2018, a CR Power project company built a 30 MW PV power station here to reduce local poverty. According to the agreement signed with the local government , Heishui, for its investment in the project, holds a 25% equity in the power station and will use all income received each year to support the poor who (due to age, disability, or otherwise) cannot work and other assistance programs. If this income is less than RMB 4.032 million in any year, CR Power will make up for the difference. This agreement went into effect on July 1, 2018 for a term of 20 years.

From July 1, 2018 to June 30, 2019, CR Power contributed RMB 4.032 million to Heishui in the form of dividends and donations, as the parties had agreed, helping 1,932 registered poverty-stricken families. During project construction, local villagers helped rebuild the roads linking to nearby areas, which has made travelling easier and brought RMB 20,000– 80,000 of income to each participating household. Following project completion, CR Power's Southwest Region company paired up with the villages of Ruoduo and Erniunai (both in Heishui) on follow-up initiatives to promote the joint development of the company and the local community. San Jixue is a 46-year-old farmer in Ruoduo. Even with the additional income from collecting medicinal herbs on the mountain slopes, his family earns only RMB 4,000–5,000 a year. During the construction of the PV project, San Jixue helped maintain site security, dug drainage trenches, and carried photovoltaic panels to the installation site. In less than a year, he made RMB 40,000–50,000, or what he used to make in ten years. "I built a new house for my family and now have the school money for my kids," said the humble middle-aged man. San was happy with his income from the past six months and would always invite our staff to his house. Set against Ruoduo's snowy mountains, rows of PV panels are creating a better life for local villagers like San.