China Renewable Energy Scaling-Up Program (CRESP) Phase II

Project Identification Form (PIF) 
Project Type: Full-sized Project
Type of Trust Fund: GEF Trust Fund
PART I: Project Identification
Project Title:	China Renewable Energy Scaling-Up Program (CRESP) Phase II
Country:	China	GEF Project ID: 
GEF Agency:	WB	GEF Agency Project ID: 
Other Executing Partner:	National Energy Administration, P. R. China	Submission Date:	March 15, 2011
GEF Focal Area:	Climate Change	Project Duration:	48 months 
Name of parent program:	China Renewable Energy Scaling-Up Program (CRESP)	Agency Fee: $2,720,000
 Focal Area strategy Framework:
Focal Area Objectives	Expected FA Outcomes	Expected FA Outputs	Trust Fund	Indicative Financing from GEF TF ($) Indicative Co Financing
($) 
CCM-1 (Innovative Low-carbon Technologies)	Advanced and innovative renewable energy (RE) technologies successfully demonstrated, deployed, and transferred;
GHG emissions avoided	Innovative low-carbon technologies (such as off-shore wind, smart grids, and energy storage) demonstrated and deployed on the ground. 
	GEFTF	14,400,000	435,000,000
CCM-3
(Renewable Energy)	Favorable policy and regulatory environment created for RE investments;
Investment in RE technologies increased; 
GHG emissions avoided	Renewable energy policy and regulation in place; 
Renewable energy capacity installed;
Electricity and heat produced from renewable sources GEFTF	10,880,000	7,500,000
Sub-Total
25,280,000	442,500,000
 Project management cost	GEFTF	2,000,000	1,600,000
Total project costs
27,280,000	444,100,000
Project Framework
	Project Objective: The original objective of the CRESP program (three phases) is to enable commercial renewable electricity suppliers to provide energy to the electricity market efficiently, cost-effectively and on a large scale. Building on achievements and lessons learned from CRESP Phase I, the objective of CRESP Phase II is to support Chinese governments 12th Five-Year Plan to enable continued and sustainable scale-up of commercial renewable energy development through cost reduction, efficiency improvement, and smooth integration to the grids, thereby contributing to governments target of reduction in carbon intensity.
Project Component	Grant Type (TA/ INV)	Expected Outcomes	Expected Outputs	Trust Fund	Indicative Financing GEF TF ($) Indicative Co Financing
($) 
Policy and implementation support	TA	Sustainable scale-up of RE by removing policy barriers to reduce incremental costs , improve efficiency, and smooth integration to the grids Market-based mechanism of RE obligations and RE certificates trading designed and piloted; 
Progress made towards electricity pricing based on State Council Decree No 5 especially with internalization of environmental costs through appropriate use of a fuel tax and/or a carbon tax and/or provision of incentives to RE, particularly small hydro, off-shore wind, and solar PV;
Off-take obligation of distributed generation issued to ensure smooth integration of RE into the grids; 
Planning and financial incentive policies recommended for pilot demonstration of RE distributed generation;
Implementation support to other RE policies under the 12th Five-Year Plan provided, including policies studied to ensure that RE scale up is not hindered as the regulatory framework evolves and reform progresses	GEFTF	4,880,000	3,000,000
Development strategy and technology improvement TA	Strategic and optimal deployment of key RE technologies
	Improved performance and efficiency of large-scale on-shore Wind Power Bases and off-shore wind farms through optimal site layout design to reduce wake effects, and wind farm assessment standards and implementation methodology developed; 
Strategies and policies for biomass technology and promotion of biomass manufacturing industry developed;
Studies to improve grid integration and planning conducted	GEFTF	3,000,000 3,000,000 
	TA/
INV	Improved efficiency, reduced incremental costs, and smooth grid integration of RE by removing technical barriers through cost-shared grants	Improved and better adapted to Chinese condition off shore wind technology and domestic manufacturing, including wind turbines, base design, and construction techniques;
Technologies for improved grid integration developed (e.g. smart grids, grid-friendly wind turbines, and energy storage) in areas with a large share of wind in the power grids; 
Technology improvements and pilot demonstration of biomass technologies; 
Pilot RE distributed generation in selected districts in urban areas and green counties demonstrated	GEFTF	14,400,000	35,000,000
Capacity building	TA	Strengthened capacity of local stakeholders on RE	Capacity for relevant government agencies at national level and demonstration areas strengthened;
Long-term capacity for selected universities and in Western China	GEFTF	1,500,000	1,500,000
RE investment	TA/INV	Investment in RE technologies increased	RE capacity installed and electricity generated;
Capacity for the investors strengthened	GEFTF	1,500,000	400,000,000
Sub-Total