The objective of the project is the generation of zero carbon emission electricity from a renewable source - hydropower.

Sichuan Muchuan County Huogu Hydropower Project which is located in Lidian Town, (Sichuan Province, P. R. China ), is constructed and operated by Sichuan Muchuan County Qixing Huogu Hydropower Development Co., Ltd. The existing scenario prior to the start of the implementation of the project is: electricity delivered to the grid by the existing thermal power plants connected to the Central China Power Grid (CCPG).

The objective of the project is the generation of zero carbon emission electricity from a renewable source - hydropower. The project installs 2 turbine-generator sets each with a unit capacity of 20MW for a total installed capacity of the hydropower station of 40MW. The project generates electricity which is dispatched to the CCPG through the Sichuan provincial grid, a sub-grid of CCPG. The project is expected to operate annual for 4982 hours corresponding to a Plant Load Factor of 56.8%. The main components of the project include the dam on the river, factory buildings and substation.

The project contributes to the sustainable development of the local area and the Host Country by enhancing the electricity supply capacity and improving the electricity quality and reducing transmission line loss for the area as well as by bringing positive social and environmental benefits to local communities. The specific sustainable development benefits of the Project are listed as follows:

➢ Reducing the reliance of the NWPG on exhaustible fossil fuels for power generation;

➢ Reducing air pollution by fossil fuel based electricity by clean, renewable power;

➢ Improving the local energy generation infrastructure, bridging the gap between power supply and demand by increasing the electricity generation capacity to the local grid;

➢ Creating job opportunities for the local communities. The Project provided 27 job opportunities throughout the operating period, and these employment opportunities are helpful for the local people to improve their living standards.