The Development of Straw-Based Biomass Power Generation in Rural Area in Northeast China—An Institutional Analysis Grounded in a Risk Management Perspective

Abstract

Given a lack of consideration for the role and importance of stakeholders and the importance of stakeholders in the operation of biomass power plants in China, a comprehensive analysis oriented toward stakeholder risk management is needed to further develop the country’s biomass energy industry. Accordingly, we analyzed institutional factors that contribute to or constrain progress in biomass power generation in China. Data were collected from 275 straw suppliers (farmers) living around a biomass power plant, 15 middlemen, five power plant managers, and five local government officers. Interviews were held with all the participants, but questionnaires were additionally administered to the straw suppliers. Results showed that: (1) risk transfer in the biomass supply chain is one of the reasons why farmers are unwilling to supply straw; (2) middlemen are vital intermediaries between biomass power plant managers and farmers as a middleman-based biomass supply system is necessary to guarantee the quantity of straw supply, and; (3) the institutional structure that underlies the Chinese biomass energy industry is immature.