LHASA, Feb. 26 -- This winter, more than 100,000 homes in Lhasa, capital city of Tibet Autonomous Region, were warmed by a local government heating subsidy.

A citywide network, initiated in 2012 and completed in 2014, connected 98 percent of all households in Lhasa to piped gas, and the local government, in conjunction with the Tibet finance department, allocated a subsidy of 370 million yuan (60.3 million U.S. dollars) to reduce residents' gas utility costs.

Lhasa, one of the highest city's in the world, has an annual mean temperature of about 8 degrees Celsius, and temperatures can fall to as low as minus 16 degrees Celsius.

According to the city's previous multi-tier pricing mechanism, gas cost upward of 4.46 yuan per cubic meter; much higher than the 2.02 yuan per cubic meter levied on Beijing residents and 3 yuan per cubic meter in Shanghai.

This is due to the fact that all the city's natural gas must be liquefied before it is transported from Golmud, in nearby Qinghai Province, and re-gasified once it arrives in Lhasa.

In 2014, the average annual income in Lhasa was 23,350 yuan, and as gas cost 4,000 yuan for a four and half month period, many families could just not afford to heat their homes.

However, thanks to the government subsidy, the price has been slashed to 1.5 yuan per cubic meter for households that use up to 1,500 cubic meters a year, the lowest among nearby regions.

In addition, households under the poverty line are entitled to 600 cubic meters of natural gas every year for free, according to the local government.

"Daily gas consumption has increased by nearly 20,000 cubic meters since the price adjustment," said Ysetyong, vice manager of Lhasa Nuanxin Gas and Heating Co. Ltd.

"Since the government subsidy, we use gas for heating, cooking and bathing," said Changtsan, a resident of Lhasa City. "And we are no longer afraid of the cold winter nights."

The clean energy has also helped cut pollution. Lhasa saw a significant reduction in carbon dioxide, sulfur dioxide and nitrogen oxide emissions in 2014, a drop of around 180,000 tonnes, 1,652 tonnes and 510 tonnes, respectively.