The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 20-Mar-2019 | Report No: PIDISDSA25564 Feb 19, 2019 Page 1 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) China P162299 China Distributed Renewable Energy Scale- Up Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EAST ASIA AND PACIFIC 19-Mar-2019 30-Apr-2019 Energy & Extractives Financing Instrument Borrower(s) Implementing Agency GEF Focal Area Investment Project Financing People's Republic of China National Energy Climate change Administration (NEA) Proposed Development Objective(s) Promote the scale-up of distributed renewable energy and GHG emission reduction in China through policy interventions and pilots Components Policy support Pilot support Project and knowledge management PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 75.78 Total Financing 75.78 of which IBRD/IDA 0.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Counterpart Funding 68.50 Borrowing Agency 2.50 Feb 19, 2019 Page 2 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) Local Sources of Borrowing Country 66.00 Trust Funds 7.28 Global Environment Facility (GEF) 7.28 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context China has experienced fast economy growth but associated with fast increase of energy consumption. Since ‘reform and opening’ in 1978, real income per person has increased over 16 times and more than 850 million citizens have risen from extreme poverty.1 China reached upper middle-income level in 2010 and has been the largest economy (in purchasing power terms) of any country since 2014. However, the fast economy growth is accompanied with fast increase of energy consumption: total energy consumption increased from 571 million tons of coal equivalent (mtce) in 1978 to 4,640 mtce in 2018. The share of coal has gradually decreased from above 70 percent before 2000 to 59 percent in 2018, but still very high in the energy mix. With the fast growth of the economy, challenges are emerging in meeting the continuous increase of energy demand and addressing the ensued serious environmental pollution and high green house gas (GHG) emission in China. President Xi called for an “energy revolution� that encompasses radical changes in energy consumption, energy supply, institutional reform, and energy technology innovation, as well as strengthens international cooperation. Government of China has committed to reduce emissions and coal use, notably through setting specific carbon intensity targets. Carbon intensity in China declined by 46 percent from 2005 to 2017, exceeding the nationally determined contribution (NDC) target of 40–45 percent target from 2005 to 2020 ahead of time, and it is well on track to achieve the NDC target of 60–65 percent from 2005 to 2030, which China committed for action under the Paris Agreement on climate change.2 The Government’s Strategy (labeled as the “Energy Revolution�), issued formally in 2016, sets the long-term goal of having more than half of energy come from non- fossil sources by 2050, compared to current targets of 15 percent by 2020, and 20 percent by 2030. Along with the sustained economic growth, China’s power sector has also experienced fast growth in the past 1 Based on poverty line of 1.9 USD PPP per day (WBG 2018). 2 As part of China’s NDC submitted in 2015, the Government intends to reduce carbon intensity per unit of GDP by 40–45 percent from 2005 to 2020 and by 60–65 percent from 2005 to 2030, and for carbon emissions to peak by 2030. Feb 19, 2019 Page 3 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) decades. By the end of 2018, total installed capacity in China amounted to 1,900 GW, and total electricity consumption amounted to 6,800TWh. The average annual growth rates of installed capacity and electricity consumption in China were 9.2 and 8.6 percent respectively in the past four decades. With the fast growth or RE, especially wind and solar power since 2005, the share of coal-fired power generation has been reduced steadily, from 83 percent in 1978, to 81 percent in 2010, and 53 percent in 2018. Meanwhile, the share of non- fossil fuel energy increased from 8.6 percent in 2010 to 14 percent in 2018, close to the government’s 2020 target of 15 percent. Sectoral and Institutional Context With the strong support of the incentive policies, RE developed very fast in last two decades. To support the development of RE, the Renewable Energy Law was passed in 2005. The Renewable Energy Law and associated supporting policies provide the sector’s legal framework, mandating national and subnational mid- and long-term targets, and feed-in tariffs for wind, PV, and biomass subsidized by a consumer surcharge through a Renewable Energy Development Fund (REDF).3 As a result, RE has experienced fast growth and accounted for most generation capacity addition since then. China now has the largest hydropower, wind, solar PV, and geothermal capacity of any country. In 2013, the State Council identified solar PV as a strategically important industry, and additional policy support for solar PV was enacted that year and in subsequent years at both national and provincial levels (see Annex 2). This additional policy support led to the beginning of a fast-growing domestic market for solar PV that continued to accelerate during 2014-2018. It also led to the booming of solar PV production capacity that at times has exceeded both domestic and overseas demand, as well as the plummeting of costs. Targets set in 2015 for the 13th FYP period include for total solar PV installed capacity to reach at least 105 GW by 2020. This was exceeded in 2018 with 175GW solar PV, mostly utility-scale. The World Bank/Global Environmental Facility (GEF) China Renewable Energy Development Project (REDP), China Renewable Energy Scale-Up Program (CRESP), and other related projects have provided support to the Chinese government on these efforts. Further scaling up of RE to meet the development target is facing serious challenges. The precipitous rise in solar PV and wind capacity has been accompanied by challenges in grid integration. Serious curtailment4 of centralized utility-scale wind and solar PV energy took place due to transmission capacity bottlenecks and weak distribution systems. Limited system flexibility and stability issues have become concerns in provinces where wind and solar PV cover the majority of demand at certain times. Some two- thirds of China’s wind and solar PV capacity is located in the North and West, far from the more populous, industrialized load centers of the East and South. Severe underuse of such capacity has resulted from institutional constraints to economic dispatch and interprovincial power trade,5 physical constraints of the transmission bottlenecks and grid integration of intermittent viable RE. Efforts have been made in building high and ultra-high voltage transmission line, improving weather and RE generation forecasting, improving system flexibility through large scale thermal power generation fleet renovation, exploring other type of use of RE to for local consumption, and installing energy storage in power systems, at generation, grid and consumer sides. In addition to those efforts for centralized utility scale RE, development of distributed RE (DRE), connected to the distribution networks directly and consumed 3 The renewable surcharge was 0.015 ¥/kWh in 2012, and rose to 0.019 ¥/kWh in 2016 (Lin 2018). 4 32.8, 49.7, 42.2, 27.7TWh of wind and 4.66, 7.53, 8.28, 5.49TWh of solar PV were curtailed in 2015 through 2018 respectively. 5 Local governments have an incentive to encourage local power generation as they can keep 25% of the value- added tax (VAT) on revenues for each unit sold while the remaining 75% goes to the Central Government. VAT is set at 13% for power generation. Feb 19, 2019 Page 4 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) locally, has been recognized as a new direction of RE development and has been promoted by both state and provincial authorities. DREs are emerging has a potential solution for China’s clean energy transition with distinct opportunities and challenges. DRE comprises technologies and services at the level of electric power distribution grid and its users, including generation, energy efficiency, demand response, storage, and related ICT (information and communication technology) systems (Hungerford & others 2017). Potential benefits of DRE from the perspective of the power system include avoiding the need for additional grid capacity, and ancillary services to ensure quality operation of the grid, among others. Developing DRE, particularly in East and South provinces in China, where are close to the load center, will greatly contribute the realization of the Chinese Government’s target to improve its energy mix and at the same time avoid the concentration issues of RE in North and West provinces in China. To promote the development of DRE, the Government of China established a target in its 13th FYP of energy that by end of 2020, the total installed capacity of DRE will reach 60GW. To realize this target, a series of policies have been issued and it is expected that this target can largely be achieved6. However, to achieve the long-term objective to make DRE an important pillar of renewable energy industry to meet the Government’s commitment on clime change, many barriers and challenges need to be overcame. Harnessing the potential of DRE for China’s clean energy transition requires further efforts to address market and policy challenges. These challenges include regulatory and operational capacity, inadequate pricing structures for capturing true economic value, institutional barriers, financial risks, investments in smart grid infrastructure, and lack of transparency in utility system costs, among others. While utility- scale PV continues to flourish in China, these challenges apply specifically to DRE. a. Lack of technical standards and specifications. Technical barriers relate mainly with the non-conformity of required technical standards due to quick development of distributed solar PV in vast areas, as well as the inadequate capacity of the distribution networks. With the fast growth of distributed solar PV in China, quality and performance of these installed capacity not up to standards may downgrade the effectiveness of the investment. Improved maintenance practices, enhanced and more flexible distribution networks, improved dispatch of DRE with installation of energy storage would be required to scale up DRE in China. b. Lack of planning for DRE. Effective development of DRE requires frameworks to understand the tradeoffs between distributed and centralized energy resources and to assess the optimal scale of deployment and location of DRE. Such frameworks are at early stage of development in advanced markets such as New York and California. Work to develop and rollout such a framework in China through DRE planning could provide a foundation for grid companies, local authorities, project developers, and end-users to identify specific locations where DRE will add the most economic value. c. Limited enabling policies for DRE. The development of DRE is facing a number of barriers, such as the lack of national, provincial, and even local enabling policies for distributed electricity generators, including grid access, direct contracting between generators and users 7, wheeling charges at distribution level, arrangements for sharing costs for the distribution grid upgrade to accommodate high penetration of distributed RE, micro-grids pricing when exporting excess power to the grids, building safety standards, and incorporation of distributed RE into urban 6 By end of 2018, the total installed capacity of distribute solar PV has surpassed 50GW. 7 Renewable energy power market trading scheme, as a pilot, is underway and is moving behind the schedule. Feb 19, 2019 Page 5 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) planning. The government has begun to address these barriers through working on relevant policies, such as grid access, wheeling charges, and technical standards for DRE and micro-grids. But the level of policy development and implementation is still far from what is needed, and further policies for DRE under the context of power sector reform are also required. The reduction and planned elimination of subsidies for renewable energy in the coming years highlights the importance of establishing a policy and regulatory framework that can sustain market-oriented development of DRE over time. d. Limited proven and scalable business models, and difficult access to rooftop space. There are a limited number of business, institutional, and ownership models proven viable and scalable for DRE. Most DRE developed so far follows a few standard models, for example third-party developers own, install, and maintain solar PV on roofs of industrial buildings, or large enterprises install solar PV on clusters of buildings under their single ownership. The single most difficult challenge is that project developers have trouble securing permission or long-term leases for use of roof space from the building occupants (or from local governments that may own commercial or industrial buildings). Developers need to obtain consent and willingness from multiple actors in commercial buildings where there is a split incentive between the owners and the tenants who typically pay energy bills. Developers also need to address owners’ concerns about potential safety issues of rooftop PV. Other barriers that hinder diversification of business models include the short time-scale of rooftop leasing, ownership or access consent, relative to a typical PV project lifetime. e. A lack of access to financing. To date, a very limited and narrow set of financing models have been used in developing DRE projects in China. These existing models are either limited in scale-up potential, or accessible only to limited number of developers, precluding other models to open to the market to a wider range of developers and scale-up potential of DRE development. There is a need to develop scalable financing models that could demonstrate viability of much larger projects and attract developers, banks, landholders, energy services businesses, consumers, and a broad array of other stakeholders. For example, there is potential for DRE developers to include small and medium sized enterprises (SMEs), which face unique barriers in accessing financing regardless of the sector, because of their inherent low creditworthiness resulting from limited collateral. Most local banks usually rely on balance sheet financing, which requires that borrowers either have good credit ratings or high levels of collateral, which, in turn, favors large-scale borrowers. The end result is that the customers who may benefit most from financing are typically not creditworthy. Ongoing World Bank engagement in China include support for DRE in different ways with various limits with respect to the target municipality, province, policy area, or type of activity financed. See Annex 2 for details. Lessons learned from these engagements are also described below. Building on these recent and ongoing activities, especially guidance and lessons for scalable models and approaches, this project will support scalable and complementary policies and pilots for innovative DRE use-cases at national, provincial, and municipal levels. This project complements the China Renewable Energy and Battery Storage (CREBS) Project, which is under preparation in parallel for a proposed Bank loan of $300 million to a financial intermediary bank Huxia Bank which will provide counterpart funding of $450 million to lend to battery storage facilities and DRE projects, by concentrating focus specifically on policies and enabling regulatory environment, viable business models development and piloting, and pipeline project development for DREs. By using the same PMO and Bank team as the current China Renewable Energy Feb 19, 2019 Page 6 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) Scale-Up Program (CRESP) Phase II, the project will maximize synergies with other activities. C. Proposed Development Objective(s) Development Objective(s) (From PAD) The Project Development Objective (PDO) is to promote the scale-up of distributed renewable energy and GHG emission reduction in China through policy interventions and pilots. Key Results The PDO indicators are: a. PDO Indicator 1: Increase in installed capacity of DRE. Baseline target without the project by June 30, 2023: 60GW. End target with the project by June 30, 2023: 70 GW.8 b. PDO Indicator 2: Increase in avoided GHG emissions. Baseline target without the project by June 30, 2040: 0 million metric tons carbon dioxide equivalent. End target with the project by June 30, 2040: 160 million lifetime increased avoided metric tons carbon dioxide equivalent9. c. PDO Indicator 3: Number of new policies for DRE developed and adopted under the project. Baseline: Nil. End target: Seven. d. PDO Indicator 4: Number of new plans or targets at province or national level developed and adopted for DRE under the project. Baseline: Nil. End target: Four. e. PDO Indicator 5: Number of innovative, scalable new use-case10 for DRE developed and piloted under the project. Baseline: Nil. Target: Six. The IO indicator for component 3 is: a. IO Indicator: A monitoring and evaluation framework, guidelines, and metrics for measuring market confidence and expectations related to distributed renewables in sample areas. Baseline: No monitoring or evaluation (M&E) system in place. Year 1 target: initial M&E system and baseline metrics established. Mid- term target: refined M&E system with improved metrics relative to baseline, and trial capturing (measuring) of market metrics in sample areas. End target: complete capture (measurement) of market metrics in sample areas. Larger subgrants are preferred to focus on major issues and to keep transaction costs of supervision within manageable limits. To this end, a split is proposed of: (a) small sub-grants of any value and number up to a combined value of no more than $0.25m under Component 1 and $0.25m under Component 2; and (b) large sub- 8 Installed capacity refers here only to renewable energy generation, not including energy storage capacity. 9 The avoided emission does not consider the curtailment and battery storage impact. If taking the storage impact into account, 5 percent losses in emission reduction can be considered. 10 Use-case is comprehensive concept, include the combination of grid-integration, system dispatch, financing model, business model/contract arrangement with the facility owner, pricing mechanism, and etc. Feb 19, 2019 Page 7 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) grants each with a minimum value of $0.4m per contract under Component 1 with a $1.75m budget, and similarly, with a minimum value of $0.4m per contract under Component 2 with a $4.03m budget. D. Project Description The project is comprising GEF grant funding of total $7,278,600 from 2019 to 2023 for the three components listed below.11 Although it is a stand-alone project, it is jointly designed with and will be implemented in parallel of the Bank-supported CREBS project to support DRE development in China. The project has a dual focus on national and subnational activities. While it will support NEA on policy and regulations for DRE at the national level, activities in all areas of China will be considered subject to selection criteria (described in Annex 3), with particular attention to local government commitment for DRE. Government agencies in several provinces (Jiangsu, Zhejiang, Guangdong, as well as Henan, and Shanxi) expressed interests and proposed potential activities during preparation. Component 1: Policy support (GEF $2.0m, counterpart funding $2.0m). This component supports studies to inform and develop policy or regulation at both national and provincial levels to scale up DRE, including: (a) grid access to allow direct contracting between the DRE generators and end users; (b) pricing schemes to account for the economic value of DRE to different actors and at given times and locations especially in the context of power sector reform, including tariffs for power supplied to the grid, incentive for DRE to meet peak demand, distribution-level wheeling charges, cost recovery for measures for the grid to accommodate high penetration of DRE, and benefits from generation and grid investments avoided due to DRE; (c) standards and certification schemes such as for safety, security, technical parameters, and building-integrated solar PV; (d) urban planning that incorporates DREs at city and township levels; (e) information and communication mechanisms including technology platforms, access, privacy, and cybersecurity risk management；(f) battery storage, particularly used for DRE, related policy, regulation, and standards, especially on safety, environment management, and reuse and disposal to support and leverage the investments in DRE and battery storage under the CREBS project. Policy studies will involve policy institutions and world class consultants to be jointly determined by the NEA Project Management Office (PMO) and the World Bank. Activities will be selected to directly inform actual strategies, plans, pilots, targets, or regulations being developed at national or local level that facilitate scale-up of various use-cases of DREs (see Annex 6). A key criterion will be evidence of commitment by Government authorities for the corresponding policy area. Component 2: Pilot support (GEF $4.28m, counterpart funding $66m). This will primarily involve acquisition of technical assistance (including studies) and may also support specific subprojects for piloting innovative and scalable use-cases of DREs (technology, business models, financing models, and association policies) in select parts of China. Activities under this component will support development and demonstration in specific locations (e.g. a given city, district or industrial park) of specific use-cases for which the techno-economic potential is otherwise already proven. That is, pilot support is not intended to demonstrate individual technologies, but rather to prove financial, institutional, and business-model viability for scale-up. Pilot may also support integration of multiple technologies to prove the economic effectiveness of such integration. Subgrants will be awarded to government agencies, industry associations, companies, or other eligible actors to support activities including: (i) support for research (excluding basic research), development and deployment of emerging technologies; (ii) development of 11 Project cost of $7,278,600 plus an agency fee of $691,400 to the World Bank, brings total cost to $7,979,000 financed by GEF. Feb 19, 2019 Page 8 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) business models and financial models for new use-cases; (iii) piloting of policy ideas such as those developed under Component 1; (iv) support development of investment pipeline including cost-shared pre-feasibility and feasibility studies to leverage investments under the CREBS project; and (v) other technical assistance such as coordination of key stakeholders, financing from various sources (both public and private), and knowledge exchange and dissemination for replication elsewhere of successful policy and pilot results. Selection criteria for subgrants include completeness, innovation, feasibility, and scalability of the use-case with an overall view to displacing consumption of grid electricity and thereby reducing GHG emissions. Component 3: Capacity Building and Project Management (GEF $1.0m, counterpart funding $0.5m). This includes: (a) technical assistance for carrying out studies and training, capacity building of key stakeholders in relation to DRE policies and technologies; (b) project management, implementation, and monitoring and evaluation (M&E), and (c) project-related donor and other key stakeholder coordination. Project management supports include covering the incremental operating costs of NEA as the implementing agency. Communications and outreach will foster a pipeline of sub-project proposals, and disseminate best practice across project activities, with at least one inception and one dissemination workshop in each target province, in addition to other platforms to share knowledge. E. Implementation Institutional and Implementation Arrangements The project will be implemented by the NEA’s New and Renewable Energy Department, which is in charge of renewable energy policy in China. The PMO under the NEA, housed within the NDRC Energy Research Institute, has been implementing CRESP since 2005, so is very familiar with the Bank’s procurement, financial management, environment and social safeguards, and project management procedures and requirements. Given the synergy between and complementarity of the proposed project and the CRESP II project, it was agreed from the outset that the two projects would be implemented on behalf of NEA by the same PMO. The implementation of CRESP II is on track and the PMO staff are, after years of continuous experience, very familiar with the Bank rules and procedures and can take on the management of the proposed projects with the assistance of high caliber experts to strengthen the quality review of activities during implementation and after completion. NEA and the Bank Teams assessed the work load, discussed with the PMO staff and concluded that there will be no need to recruit new PMO staff and that temporary overload works could be handled through short term local or international consultants. The Project will complement CRESP II funds to enhance the quality of design, implementation, and reporting of the activities supported by the respective projects. The Bank’s social and environmental safeguards policies, including the objective of encouraging civil society organization participation and protection of the interests of minority stakeholders, will be strictly followed in selecting and implementing Project activities. . Feb 19, 2019 Page 9 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) Pilot activities and some policy support activities are likely to focus on the provinces of Zhejiang, Jiangsu, Guangdong, Shanxi, and Henan. Other policy support activities will apply at a general national level for China. G. Environmental and Social Safeguards Specialists on the Team Youxuan Zhu, Social Specialist Chongwu Sun, Environmental Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) The project primarily consists of policy studies, technical assistance, and capacity building related to distributed renewable energy (RE) development. These activities are expected to have no adverse environmental impacts. However, under the project Component 2, there would be some activities to support preparation of feasibility study and implementation of some limited pilot demonstration Environmental Assessment OP/BP 4.01 Yes sub-projects associated with distributed renewable energy, mostly rooftop solar PV systems in Zhejiang, Guangdong, and other pilot provinces. The pilot activities would mainly involve installation of equipment, and perhaps very limited civil works. There are no land acquisition, resettlement, physical cultural resources or indigenous people involved in the project. Therefore, the project is classified as Category B according to OP4.01. Performance Standards for Private Sector No Activities OP/BP 4.03 The project will not involve physical construction of Natural Habitats OP/BP 4.04 No RE facilities, and no natural habitats are envisaged to be involved. This project will not involve forest land or forestry Forests OP/BP 4.36 No activity. Feb 19, 2019 Page 10 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) This project will not involve any activity related to Pest Management OP 4.09 No pest management. The project is primarily a technical assistance activity and will not involve physical construction of RE Physical Cultural Resources OP/BP 4.11 No facilities, and no physical cultural resources are envisaged to be involved. The project is primarily a technical assistance activity for RE. It will not involve any specific physical investment activities with specific locations, and no Indigenous Peoples OP/BP 4.10 No ethnic minority communities will be affected. The policy of indigenous people (OP4.10) will not be triggered for the project. The project is primarily a technical assistance activity and will not involve physical construction of RE Involuntary Resettlement OP/BP 4.12 No facilities. As a result, no land acquisition or resettlement will be involved for the project. The project will not involve any dam construction or Safety of Dams OP/BP 4.37 No existing dam. Projects on International Waterways The project will not involve any international No OP/BP 7.50 waterways. Projects in Disputed Areas OP/BP 7.60 No The project will not involve any disputed areas. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Project activities will consist of policy studies, technical assistance, and capacity building and will not include any physical construction or installation. Under Component 2 Pilot support, there would be some activities to support preparation of feasibility study and implementation of some limited pilot demonstration sub-projects associated with distributed renewable energy, mostly rooftop solar PV systems, in Zhejiang and Guangdong provinces and other pilot provinces. The pilot activities would mainly involve installation of equipment, and perhaps related to very limited civil works. Therefore, there is not any large scale and significant and irreversible environmental and social impacts to be expected. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Feb 19, 2019 Page 11 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) The implementing agency is familiar with World Bank safeguards policy through its role as the implementing agency for the China Renewable Energy Scale-Up Program (CRESP) Phase 1 (2006-2012) and Phase 2 (2013-2019). CRESP2 includes an Environmental Management Plan that provides a framework for project implementation including environmental screening; due diligence review of project buildings; generic environmental code of practices (ECOPs); and implementation arrangements. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders for the project are Energy Administrations at different level of government as well as the project enterprises. They have been engaged in project preparation. The pilot sub-project under Component 2 will be identified and prepared during project implementation, based on the needs and feasibility in the project provinces. During the project preparation, an Environmental Management Framework (EMF) has been prepared, in which a section on public consultation and information disclosure is included. B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 23-Oct-2018 05-Nov-2018 "In country" Disclosure China 02-Nov-2018 Comments C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Feb 19, 2019 Page 12 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Yanqin Song Senior Energy Specialist Alan David Lee Energy Specialist Borrower/Client/Recipient People's Republic of China Mr. Lyu Xia Director, International Department, MOF IFID1_project@163.com Implementing Agencies Feb 19, 2019 Page 13 of 14 The World Bank China Distributed Renewable Energy Scale-Up Project (P162299) National Energy Administration (NEA) Mr. Liang Zhipeng Deputy Director General FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Yanqin Song Task Team Leader(s): Alan David Lee Approved By Safeguards Advisor: Practice Manager/Manager: Jie Tang 19-Mar-2019 Country Director: Harold L. Bedoya 20-Mar-2019 Feb 19, 2019 Page 14 of 14