India: Development of the International Center for Application of Solar Energy Technologies

Sovereign Project | 44396-012

Summary

1. Promoting the availability and use of clean energy is one of the highest priorities of the Asian Development Bank (ADB). In 2010, ADB funded nearly $1.76 billion worth of projects with clean energy components, exceeding its $1 billion target for the third year in a row. From 2013, this target will increase to $2 billion a year. The Asia and Pacific region, where demand for energy is projected to almost double by 2030, could start using clean power from sustainable solar energy and other renewable sources within the next 3 years.

2. In May 2010, ADB announced its Asia Solar Energy Initiative. From 2010 to 2012 it will finance 3,000 megawatts (MW) of solar power generation projects to (i) keep the region abreast of technological developments in solar energy, (ii) identify and develop large capacity solar projects, and (iii) design incentives and innovative financing for the rapid diffusion of solar technology for both grid connected and distributed stand-alone power generation.

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Project Name Development of the International Center for Application of Solar Energy Technologies
Project Number 44396-012
Country India
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7808-IND: Development of the International Center for Application of Solar Energy Technologies
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming No gender elements
Description

1. Promoting the availability and use of clean energy is one of the highest priorities of the Asian Development Bank (ADB). In 2010, ADB funded nearly $1.76 billion worth of projects with clean energy components, exceeding its $1 billion target for the third year in a row. From 2013, this target will increase to $2 billion a year. The Asia and Pacific region, where demand for energy is projected to almost double by 2030, could start using clean power from sustainable solar energy and other renewable sources within the next 3 years.

2. In May 2010, ADB announced its Asia Solar Energy Initiative. From 2010 to 2012 it will finance 3,000 megawatts (MW) of solar power generation projects to (i) keep the region abreast of technological developments in solar energy, (ii) identify and develop large capacity solar projects, and (iii) design incentives and innovative financing for the rapid diffusion of solar technology for both grid connected and distributed stand-alone power generation.

3. As of 31 January 2011, coal fueled power plants accounted for 54.4% of India's generation capacity of 170,000 MW. Renewable energy sources (wind, small hydro, biogas, etc. plus a negligible amount of solar grid connected power) contributed only about 16,787 MW, or a little less than 10% of the total. India has 4-7 kilowatt hours per square meter of solar irradiation per day with better than average irradiation in its western and southeastern regions. Recognizing the country's solar power potential and the possibility of strengthening energy security with that renewable resource, the Expert Committee Report on the Integrated Energy Policy of the Government of India (adopted in 2008) recommended that a technology mission be formed to make solar power more economically attractive. The Jawaharlal Nehru National Solar Mission (JNNSM) was launched by the government in January 2010 to promote research and development and technology transfer, and to look into the establishment of knowledge hubs for solar energy and smart grid development. With support from the JNNSM, India is expected to develop 1,000-2,000 MW of utility grid power by 2013, 4,000-10,000 MW by 2017, and 20,000 MW by 2022. Off grid solar applications of up to 200 MW are also foreseen by 2013, 1,000 MW by 2017, and 2,000 MW by 2022. The South Asia Department of ADB is backing a proposed loan to the state government of Gujarat for the evacuation of power from the 580 MW Charankha solar park, the first phase of the solar program. The Private Sector Operations Department of ADB will provide a partial credit guarantee for lenders to solar projects, and direct loans where possible.

4. In pursuit of the goals set by the JNNSM, the Indian Institute of Technology (IIT)- Rajasthan at Jodhpur has proposed the establishment of the International Center for Application of Solar Energy Technologies (ICASET) to carry out research and development in and deploy solar energy technologies, benchmark technologies, and develop human resources in the area of solar energy. At the same time, other knowledge institutions are developing and expanding their capacity development and technology transfer functions to mainstream solar power and smart grid development. In this regard, technical assistance (TA) for the establishment and operation of ICASET and other agencies, such as the government of Gujarat, is proposed to support the JNNSM.

Project Rationale and Linkage to Country/Regional Strategy The TA will help develop capacity and transfer technology to mainstream solar energy and stable grid development in line with the JNNSM. In particular, the TA will help IIT-Rajasthan and other agencies, e.g., the state government of Gujarat, to institutionalize and operationalize solar energy and smart grid development functions. It will support knowledge institutions in capacity development, research and development, technology transfer and deployment, knowledge sharing, and pilot testing in solar thermal and solar photovoltaic energy, hybrid solar energy, smart grids, and thermal-to-cooling and thermal-to-thermal technologies.
Impact Greater and more environmentally sound energy security with solar energy use and stable grid development for inclusive and low carbon growth
Project Outcome
Description of Outcome Developed capacity in policy, technology, and financing for the promotion of solar energy and stable grid development
Progress Toward Outcome The TA has supported fourteen workshops to promote knowledge sharing among academic, government, and private sector stakeholders. Technical experts have also built capacity at IITJ and PDPU and aided the development of testing facilities.
Implementation Progress
Description of Project Outputs

Establishment of ICASET at the Indian Institute of Technology in Rajasthan

Conduct of technology transfer and deployment program at ICASET and state government agencies

Conduct of capacity development program

Status of Implementation Progress (Outputs, Activities, and Issues) ICASET has been established as a knowledge hub for solar energy and smart grid development. Test beds were established at PDPU for testing, calibration, and benchmarking of new and existing technologies. Several knowledge exchange workshops have been held under this TA, building capacity among researchers and staff of the university and wider stakeholders across government and the private sector.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with stakeholders from governments and private sectors at the first meeting of the Asia Solar Energy Forum held in Manila in July 2010.
During Project Implementation On-going project implementation to achieve the following output: (i) establishment of ICASET at the IIT, Rajathan; (ii) conduct of technology transfer and deployment program at ICASET and state government agencies; and (iii) conduct of capacity development program.
Business Opportunities
Consulting Services

The technical assistance (TA) will require the services of six international consultants as follows:

1. Solar Energy Development Specialist (Instritutional)(Team Leader, International, 6 person-months)

2. Solar Energy Development Specialist (Engineer)(International, 6 person-months)

3. Private Sector Participation Specialist (International, 4 person-months)

4. Solar PV Specialist (International, 3 person-monthts)

5. Smart Grid Specialist (International, 3 person-months)

6. Battery Storage Specialist (International, 3 person-months)

and four national consultants as follows:

1. Solar Energy Development Coordinators (Two nationals, 15 person-months each)

2. Solar Energy Engineer (National, 15 person-months)

3. Capacity Development Coordinator (National, 15 person-months)

Procurement TBD
Responsible ADB Officer Shannon Cowlin
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Indian Institute of Technology RajasthanCamp Office: MBM Engineering College Jod
Jodhpur - 342 011
India
Government of GujaratEnergy and Petrochemicals Department
Block 5, Secretariat Gandhinarg 392010,
India
Timetable
Concept Clearance 04 Nov 2010
Fact Finding 12 Nov 2010 to 18 Nov 2010
MRM -
Approval 17 May 2011
Last Review Mission -
Last PDS Update 20 Mar 2015

TA 7808-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 May 2011 27 Sep 2011 27 Sep 2011 30 Jun 2013 31 Aug 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 400,000.00 0.00 0.00 0.00 2,400,000.00 17 May 2011 1,010,954.27

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