|
The China Renewable Energy Scale-up Program (CRESP) has been developed by the Government of China (GOC) in cooperation with the World Bank (WB) and the Global Environment Facility (GEF) to provide assistance with the implementation of a renewable energy policy development and investment program. It aims to: i) study the current renewable energy resources status; ii) learn from the experiences of developed countries in the development of renewable energy; iii) study and formulate renewable energy development policy in China; iv) implement renewable energy scale-up development v) provide cost-effective and commercial renewable energy electricity to the electric power market; and vi) replace coal-fired generation and reduce the local and global negative environmental impacts.
The program implementation cycle will be divided into three different implementation phases, as described below. The phasing is intended to assist a gradual roll out of the policy and supporting measures, in step with the implementation capacity of administrative and regulatory bodies, at the state and provincial levels, and of the commercial renewable energy industry.
Phase |
Scope |
Objective |
1 |
Mandated Market Policy £¨ MMP £© Piloted in 4 Province, with Supporting Measures Implemented Nationally |
Aided by the MMP and other interventions, commercial renewable energy suppliers demonstrate willingness to engage in a large-scale renewable energy market |
2 |
MMP Adopted Nationally and Implemented in Selected Provinces; Supporting Measures Implemented Nationally. |
Commercial renewable electricity suppliers provide energy to the electricity market, based on an MMP in about 10 selected provinces. |
3 |
MMP Implemented in All provinces; Supporting Measures Continue Nationally. |
Commercial renewable electricity suppliers provide energy to the electricity market efficiently, cost-effectively and on a large scale throughout China . |
For Phase 1, the GEF Council approved a GEF grant of $ 40.22 million to finance assistance to create an enabling environment for scaling-up renewable energy investments and to support the provincial demonstration projects.
In the Phase 1, the focus would be as follows:
• Developing and setting up the necessary policy instruments including laws, regulations or both, required to introduce an MMP and other supporting measures on the national level;
• Testing the proposed MMP framework in four pilot provinces;
• Creating a enabling environment for renewable electricity investment by commercial enterprises, in particular those from the private sector;
• At the national level, supporting improvements to the quality and performance of renewable energy equipment and strengthening the capability of service providers to help building and enlarging the renewable industry.
The first phase would involve fewer investments in renewable electricity facilities than the second and the third phase, but would require considerable investment in capacity building. Building this capacity early would contribute to cost reduction in future phases.
CRESP is a 10 to 12 year program, implemented in three phases. Phase 1 of CRESP has two components:
• Investment Component
• Institutional Development & Capacity Building Component
The Institutional Development & Capacity Building Component in turn has 4 sub-components:
National Level Institutional Development & Capacity Building
Provincial Level Institutional Development & Capacity Building
Capacity Building Investors & Scale-up Support
Program Management
The CRESP Institutional Development & Capacity Building Component would provide financial assistance to create an enabling environment for scaling-up renewable energy investments and to support the provincial demonstration projects. This will include support for the implementation of the Renewable Energy Law, capacity building and addressing barriers to scale-up renewable energy investments in the provinces. The GEF assistance provided under the sub-programs will be managed by the PMO. |
