India: Gujarat Solar and Smart Grid Development Investment Program

Sovereign Project | 45418-003

Summary

The proposed Gujarat Solar and Smart Grid Development Investment Program (the Program) will be a Multi Tranche Financing Facility (MFF) to develop the transmission and distribution network in Gujarat. Support will be provided for grid connected solar PV to meet day time demand in rural areas (including agriculture) and for distribution of electricity through smart high voltage distribution system (S-HVDS) in two distribution companies. In addition, transmission evacuation and grid stabilization related infrastructure including for solar power transmission would be developed.

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Project Name Gujarat Solar and Smart Grid Development Investment Program
Project Number 45418-003
Country India
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8055-IND: Preparing the Gujarat Solar and Smart Grid Development Investment Program
Technical Assistance Special Fund US$ 350,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - solar

Gender Equity and Mainstreaming Some gender elements
Description The proposed Gujarat Solar and Smart Grid Development Investment Program (the Program) will be a Multi Tranche Financing Facility (MFF) to develop the transmission and distribution network in Gujarat. Support will be provided for grid connected solar PV to meet day time demand in rural areas (including agriculture) and for distribution of electricity through smart high voltage distribution system (S-HVDS) in two distribution companies. In addition, transmission evacuation and grid stabilization related infrastructure including for solar power transmission would be developed.
Project Rationale and Linkage to Country/Regional Strategy

In May 2010, ADB announced the Asia Solar Energy Initiative (ASEI) to catalyze 3,000 megawatts of solar power generation projects from 2010 to 2013. India is bestowed with solar irradiation ranging from 4-7 kWh/square meter/day across the country and certain regions namely the western and southern have high solar incidence. With rapid growing electricity demand, availability of land and increasing reliance on imported sources of fossil fuel, India is perceived to have a large potential for solar energy development. The government of India (GOI) launched Jawaharlal Nehru National Solar Mission (JNNSM) in 2010 to create an enabling framework for deployment of 20,000 MW of solar power by 2022. Out of the 3,000 megawatts, at least 500 MW is expected to be developed by India with ADB's support.

The Program is third intervention to the Gujarat power sector following the $350 million Gujarat Power Sector Development Program (SDP) and the $100 million Gujarat Solar Power Transmission Project. The Program is part of a set of activities to be supported by the Clean Technology Fund (CTF), a concessional financing facility to support the Government of India's plan to reduce carbon emissions. The Program is to be implemented in phases depending on the progress of ongoing and proposed solar power investment in Gujarat. Given this and the overall strategic context, an MFF modality is proposed for the Program. An MFF approach would also provide required flexibility to incorporate CTF financing as well as design of CTF project components. The roadmap for long term partnership for developing the renewable energy sector in Gujarat would be further developed during the processing.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be engaged in accordance with the Guidelines on the Use of Consultants (2010, as amended). A total of 8 positions and 14 person-months of consulting services are required. Individual consultants will be engaged for 4 positions for 8 person-months, namely, the Distribution Specialists (International and National), and the Social and Environmental Safeguards Specialists, as their services are required to commence at the earliest. The remaining 4 positions for 6 person-months would be recruited through a firm by obtaining a biodata technical proposal, following the quality and cost based selection method with 80% weight for quality and 20% weight for price. To expedite project processing, advanced contracting procedures are proposed to be adopted, so that the consultants can be on board soon after the TA is effective. Work to be performed by the consultants includes assisting ADB with (i) detailed technical assessment of the proposed solar power generation and transmission program; (ii) detailed capacity assessment of the executing agencies, and suggested remedial action plan to build EA capacity to minimize procurement, financial management and governance risks; (iii) preparation of bid document and a procurement plan for tranche 1 loan; (iv) preparation of social safeguards framework documents, and social safeguards due diligence for tranche 1 loan including census surveys, consultations and preparation of a resettlement plan; (v) preparation of environmental safeguards framework document and environmental safeguards due diligence for the tranche 1 subprojects including consultations and preparation of an initial environmental examination; (vi) economic and financial due diligence for the tranche 1 subprojects; and (vii) assessment of the readiness of GETCO and distribution companies to undertake the project, and organizing workshops for procurement training, conferences to promote solar projects in Gujarat and ascertain investor expectations, and suggesting an action plan for capacity development in this area.
Responsible ADB Officer Takeshi Shiihara
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Gujarat Energy Transmission Corporation LimitedSardar Patel Vidyut Bhavan, Race Course,
Vadodara- 390 007
INDIA
Uttar Gujarat Vij Company LimitedUGVCL Regd. & Corporate Office
Visnagar Road, Mehsana-384001
Paschim Gujarat Vij Company LimitedRegd. Office: "Paschim Gujarat Vij
Seva Sadan" Office Nana Mava Road,
Laxminagar, Rajkot (360004)
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 05 Mar 2012
Last Review Mission -
Last PDS Update 30 Mar 2015

TA 8055-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Mar 2012 09 Jan 2013 09 Jan 2013 31 Dec 2012 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
350,000.00 0.00 0.00 0.00 0.00 0.00 350,000.00 05 Mar 2012 17,113.64
Title Document Type Document Date
Gujarat Solar and Smart Grid Development Investment Program Technical Assistance Reports Jun 2013

Safeguard Documents

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Evaluation Documents

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