CRESP is a program in threephases. The program objective is to enable commercial renewable electricity suppliersto provide energy to the electricity market efficiently, cost-effectively, and on a largescale. The objectives of the Phase 1 Project are to:

1. create a legal, regulatory, and institutionalenvironment conducive to large-scale, renewable-based electricity generation;and

2. demonstrate success in large-scale, renewable energy development with participatinglocal developers in two provinces.

  The Phase 1 Project has two components:

1. Institutional Strengthening and Capacity Building Component; and

2. Support forWind and Biomass in Pilot Provinces Component.

The second component supportsthe establishment of a 100 MW wind farm at Changjiang’ao, Pingtan Island, by theChina Long Yuan Electric Power Group Corporation, and a 25 MW straw-fuelled biomasspower plant at Mabei Village, Rudong County, by Jiangsu Guo Xin InvestmentGroup Limited. The cost of the 100 MW wind farm is US$104 million, of whichUS$67 million will be financed by the World Bank. The cost of the 25 MWstraw-fuelled power plants is US$36 million of which US$20 million will be financedby the World Bank. The Institutional Strengthening and Capacity BuildingComponent comprises a large number of activities at the national, provincial andinvestor levels.

  At the national level, activities consist of:

1. Mandated Market Policy(MMP) research;
2. support to MMP implementation;
3. Technology ImprovementWind; and
4. Technology Improvement Biomass.

  At the provincial level, activities are:

1. support to MMP implementation;
2. resource assessment;
3. cost-shared supportfor scaling-up renewable energy; and
4. capacity building for market participants.

  At the investor level, support is provided to increase additional private sector investments inrenewable energy. The Technology Improvement for Wind (at national level) comprisesvarious elements:

1. technology development by selected manufacturers;
2. standard setting;
3. establishment of a wind testing center;
4. establishment of certification capabilities;
5. establishment of a national wind resource assessment center;
6. long term capacity building; and
7. studies.

The total budget of CRESP Phase 1 is US$228.82 million of which US$87 million is in the form of an IBRD loan and US$40.22 million is from a GEF grant. The two investment projects generate, over a20-year period (2006-2026), 8.4 TWh renewable electricity saving approximately 10 million tons of CO₂. The indirect impact -- through the establishment of a legal, regulatory,and institutional environment conducive to large-scale, renewable-based electricity generation -- is much larger and estimated at 500 TWh incremental renewable electricity generation, saving approximately 160 million tons of carbon over a 20-yearperiod. Expected closing date of Phase 1 of CRESP is September 30, 2010.Over the long preparation period, ASTAE has provided intensive support for the preparation of CRESP.

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  ASTAE provided support throughout all CRESP preparation stages. These stages were:

1. program concept generation;
2. concept formulation and clarification;
3. consensus building;
4. quality assurance; and
5. preparation for early implementation.

During program concept generation, ASTAE financed a consultant to develop, under guidance of the World Bank team, the program concept and to prepare presentations for Bank management and GOC counterparts. The presentations contributed to Bank management and GOC reaching agreement on the concept of the program and on further development of the program. During concept formulation and clarification, ASTAE financed consultants to assist the World Bank team in preparing a policy advisory note to the GOC on renewable energy development in the 10th Five Year Plan period. This note proposed to introduce a Mandated Market Policy in China. Furthermore, ASTAE financed consultants to assist in further development of the concept; preparing the Project Concept Document and the GEF Project Brief; conducting a participatory Objective Oriented Project Planning workshop; and preparing proposals to mobilize additional program preparation funds from the GEF Project Development Facility (PDF) Block B and Block C, and from thePolicy and Human Resources Development Fund (PHRD), as well as from other sources of funds, such as Consultant Trust Funds. With respect to consensus building, ASTAE supported a series of workshops, study tours, policy dialogue and advisory works. These activities were vital for program development because they helped the GOC and stakeholders gain broad acceptance of the concept. In general, the ASTAE support consisted of financing consultants to assist in successful implementation of activities financed from other sources. In case of the preparation of the Renewable Energy Law, ASTAE provided the major part of support for two main activities: the renewable energy law study tour (March/April 2004) and the renewable energy law seminar (October 2004). ASTAE agreed to provide the required funding because of the importance of the activities and because these activities would not take place otherwise, as this work had not been foreseen at the time of planning and budgeting for program preparation. As part of the quality assurance process, ASTAE financed consultants to assist the Bank teamin areas requiring specific expertise and to support strengthening of the capacity of the Project Management Office. Examples of the support provided are: funding consultants to review the feasibility study of the Pintang wind farm and review of the design and feasibility study of the Rudong biomass project. Finally, with respect to preparation for early implementation, ASTAE supported, among others, the translation and compilation of the China Wind Resources Assessment Handbook.

ASTAE support was invaluable for the preparation of CRESP because it was provided in a timely and flexible waywhich enabled carrying out critical activities for which either no funding was available or which were not foreseen initially. The fact that ASTAE is located in the East Asia and Pacific Energy Unit greatly contributed to this in-time support.

[Board comments ranged from: “this project exemplifies the type of ambitious reform promotion and knowledge transfer initiative that the Bank and GEF should be supporting”; to…. “this project addresses a crucial sustainable development issue, is very well designed and based on outstanding analysis”; to …. “this project is truly path-breaking and we hope it will be widely replicated.”]

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China - Renewable Energy Scale-up Program (CRESP)
World Bank Project Details