Environmental and Social Management Risk and Sustainability Framework Document Title: Distributed Battery Storage with Document Identifier: ENV18-R193 Distributed Solar Photo Voltaic (PV) Project Environmental and Social Alternative Reference N/A Management Framework Number: Area of Applicability: Eskom Holdings SOC Ltd Functional Area: Environmental Management Revision: 1 Total Pages: 30 Next Review Date: October 2019 Disclosure Controlled Disclosure Classification: Compiled by Supported by Functional Authorized by Responsibility Dave Lucas Kevin Chetty Patrick Mulenga Deidre Herbst Corporate Project Manager: Senior Manager: Senior Manager: Specialist Project Project Environmental (Environmental Development Development Management Management) Date: Date: Date: Date: File name: 20181119_Eskom Battery Storage ESMF for AfDB restructuring note and for publishing on AfDB website_KC Eskom Battery Storage Project Environmental and Unique Identifier: ENV18-R193 Social Management Framework Revision: 1 Page: 2 of 30 Content Page 1. Introduction ............................................................................................................................... 3 2. Supporting Clauses .................................................................................................................. 3 2.1 Scope ............................................................................................................................... 3 2.1.1 Purpose ................................................................................................................. 4 2.1.2 Applicability ........................................................................................................... 4 2.1.3 Effective date ......................................................................................................... 4 2.2 Normative/Informative References ................................................................................... 4 2.2.1 Normative .............................................................................................................. 4 2.2.2 Informative............................................................................................................. 4 2.3 Definitions ........................................................................................................................ 5 2.4 Abbreviations ................................................................................................................... 5 3. Distributed Battery Storage with Distributed PV Project: Environmental and Social Management Framework .......................................................................................................... 5 3.1 Summary and purpose of the ESMF ................................................................................. 5 3.2 Instruction and Scope of the assessment ......................................................................... 6 3.3 Description of programme operation ............................................................................... 12 3.4 Environmental and social baseline information at the national and regional level ........... 13 3.4.1 Battery Energy Storage System (BESS) .............................................................. 17 3.5 Procedures to assess potential environmental and social impacts and risks of sub- projects .......................................................................................................................... 19 3.6 Measures to develop appropriate ESMPs for sub-projects ............................................. 22 3.7 Arrangements for monitoring and sub-project supervision .............................................. 25 3.8 Arrangements for reporting ............................................................................................. 26 3.9 Outline of proposed mitigation and enhancement measures .......................................... 26 3.10 Requirements for training and capacity building to enable ESMF implementation .......... 27 3.11 Conclusion ..................................................................................................................... 27 4. Acceptance ............................................................................................................................. 27 5. Revisions ................................................................................................................................ 28 CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Eskom Battery Storage Project Environmental and Unique Identifier: ENV18-R193 Social Management Framework Revision: 1 Page: 3 of 30 1. Introduction Eskom had completed the conceptual evaluations of the project option as a suitable replacement to the 100 MW Kiwano Concentrating Solar Power (CSP) project to meet the World Bank (WB) and its co-financiers Project Development Objectives (PDO’s) in October 2017. The project option is: 1440 MWh of Distributed Battery Storage with 60 MW Distributed Solar Photo Voltaic (PV) to be implemented at Eskom’s distribution and renewable energy site. Eskom strongly believes, given the recent and current global trends on the use of battery storage to support National Electricity Grids, that there will be significant and scalable benefits to be derived in developing this battery storage technology application for South Africa (SA). The Battery Energy Storage Systems (BESS) will be used as technology solutions (such as peak shaving, frequency regulation, voltage regulation, energy arbitrage, ancillary services, etc.) for the Distribution (Dx) constrained networks and substations: to assist peak shaving, frequency support and ancillary services in the distribution network. The objective of this Environmental and Social Management Framework (ESMF), in the context of Eskom’s Distributed Battery Storage with Distributed Solar Photo-Voltaic (PV) project, is to provide the framework for environmental and social screening, scoping assessment, management, monitoring and reporting during the development, execution, operation and maintenance of this project. The ESMF will address the South African (SA) environmental and social legislative framework as well as Eskom’s policies, standards and guidelines that apply the relevant safeguards for this investment that could have an impact on biophysical and social environments in which it is undertaken. The ESMF identifies relevant potential environmental and social risks and impacts that may arise from the Distributed Battery Storage with Distributed Solar Photo-Voltaic (PV) project. Furthermore, it presents a screening and assessment methodology for this project to allow for environmental and social risk and impact identification and classification, and specifies the appropriate roles and responsibilities of stakeholders. 2. Supporting Clauses 2.1 Scope This ESMF is for the Eskom Distributed Battery Storage with Distributed Solar PV project within various provinces of the Republic of South Africa. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Eskom Battery Storage Project Environmental and Unique Identifier: ENV18-R193 Social Management Framework Revision: 1 Page: 4 of 30 2.1.1 Purpose The purpose of this ESMF, in the context of Eskom’s Distributed Battery Storage with Distributed Solar PV project, is to provide the framework for environmental and social screening, scoping assessment, management, monitoring and reporting during preparation and execution of this project. The ESMF will address the South African environmental and social legislative framework as well as Eskom’s policies, standards and guidelines that apply the relevant safeguards for this investment that could have an impact on biophysical and social environments in which it is undertaken. 2.1.2 Applicability This document shall apply to the Eskom Distributed Battery Storage with Distributed Solar PV project. 2.1.3 Effective date From the date of authorisation. 2.2 Normative/Informative References Parties using this document shall apply the most recent edition of the documents listed in the following paragraphs. 2.2.1 Normative [1] Constitution of the Republic of South Africa Act No. 108 of 1996 [2] Environmental Impact Assessment for Distribution Activities 240-72597722 [3] National Environmental Management Act No. 107 of 1998 [4] Southern African Power Pool – Environmental and Social Management Framework, 2018 2.2.2 Informative [5] Occupational Health and Safety Act No. 85 of 1993 [6] ISO 14001: 2015 Environmental Management Systems - Requirements with guidance for use CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Eskom