In April 2003, the “Instructions on the Technical Modernization of Rural Hydro” was issued by the Ministry of Water Resources, which clarified the technical direction for the development of the rural hydropower sector in the years to comein order to quicken the pace of modernization for China''s rural hydropower. The document pointed out the direction for standardizing and guiding the rural hy-dropower sector for technical advancement. The overall objectives are, prior to year 2010, 50% of rural hydropower plants and their power grids should be modernized, and in 2015 the rural hydropower sector should be all modernized Through scientific and technical innovation and management improvement, the competitiveness of the rural hydropower market should be noticeably improved The “Instructions onthe Technical Modernization of Rural Hydro” bring out some objectives and requirements as follows:
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