Yunnan is one of the less developed provinces in China, but has abundant energy resources, and is an ideal destination for tourists around the world due to its perfect climate and unique sightseeing resorts. However, energy consumption in rural households relies mainly on straw (12.15%), firewood (41%), and coal (38.5%). This pattern of energy consumption has been imposing pressure on the environment, water resources and soil in recent years with the rapid growth of Yunnan's economy. This paper reports the achievements in Yunnan's rural energy development in the past two decades. Issues of the greatest concern and interest, which are unfavorable for further development of rural energy, have been identified, and a new proposal of developing green rural energy in Yunnan is suggested based on its economy and resource conditions. The proposal addresses the development of biogas, small hydropower and solar energy, which are abundant in Yunnan. It is estimated that the new program will annually bring direct benefits of about 5 billion yuan to farmers by 2010, and the indirect benefits, such as those from tourism due to the improvement of the environment resulting from the use of green rural energy, will be enormous. It is believed that the program will speed up rural economic growth through the integrated utilization of rural energy. (C) 2004 Elsevier Ltd. All rights reserved.