India : Rajasthan Renewable Energy Transmission Investment Program (Facility Concept)

Sovereign Project | 45224-002

Rajasthan completed the installation of about 1767 MW of wind and 45 MW of solar generation at the end of 2011 using surplus transmission capacity in the grid. The state's investment plan for renewable energy targets installation of about 8,000 MW of solar and wind projects by 2018. These include private solar and wind power projects to be set up primarily in the renewable energy rich resource areas of Western Rajasthan (in Jodhpur, Bikaner, Barmer and Jaisalmer) including in the solar park being developed in Bhadla by the Rajasthan Renewable Energy Corporation. The Program would support transmission facilities for evacuation of renewable energy to the state and national grid.

Project Details

Project Name Rajasthan Renewable Energy Transmission Investment Program (Facility Concept)
Project Number 45224-002
Country / Economy India
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0076-IND: Rajasthan Renewable Energy Transmission Investment Program (Facility Concept)
Ordinary capital resources US$ 300.00 million
Clean Technology Fund US$ 198.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Private sector development
Sector / Subsector
Gender Effective gender mainstreaming
Description Rajasthan completed the installation of about 1767 MW of wind and 45 MW of solar generation at the end of 2011 using surplus transmission capacity in the grid. The state's investment plan for renewable energy targets installation of about 8,000 MW of solar and wind projects by 2018. These include private solar and wind power projects to be set up primarily in the renewable energy rich resource areas of Western Rajasthan (in Jodhpur, Bikaner, Barmer and Jaisalmer) including in the solar park being developed in Bhadla by the Rajasthan Renewable Energy Corporation. The Program would support transmission facilities for evacuation of renewable energy to the state and national grid.
Project Rationale and Linkage to Country/Regional Strategy India has an annual electricity deficit of 8% and nearly 350 million people without access to electricity. The country is heavily dependent on fossil fuel imports (coal, gas, oil) to meet its electricity requirements. The Government in its Integrated Energy Policy (IEP) 2006 estimated that the country would need to increase its electricity generation by at least 5 times, and change the sources mix, to meet the increase in demand expected by 2032. India's tropical position bestows it with solar irradiation ranging from 4-7 kWh/square meter/day across the country and certain regions, particularly the western region (including Rajasthan), have even higher solar incidence. Given this background, India has decided to invest in renewable energy (RE).
Impact

Accelerated development of renewable energy sources in Rajasthan and India

Project Outcome
Description of Outcome

Cleaner electricity mix with more efficient and effective generation and transmission system achieved

Progress Toward Outcome Transmission line infrastructure and Substation for transmitting power up to 3,700 MW had been completed under tranche 1. Due to overall investments in the state, Rajasthan achieved transmission network capacity to transmit 8,800 MW by 2018. Tranche 2 was lapsed on 2 June 2018 as it remained unsigned. Tranche 3 is under processing, however currently is on hold due to Hon'ble Supreme Court of India ruling on construction of overhead lines in Rajasthan.Institutional capacity has been developed in RRVPNL to operate high-penetration solar and wind power generation in Rajasthan after implementing several transmission projects to evacuate renewable energy projects. Institutional capacity enhanced through TA implementation. The intended outcome of Tranche 1 has been successfully achieved and over 9,000 MW of wind and solar capacity has been added resulting in GHG savings of 5.6 million tons per year.
Implementation Progress
Description of Project Outputs

1. Bulk power transmission system in Rajasthan expanded

2. Institutional capacity for renewable energy parks and transmission system developed.

Status of Implementation Progress (Outputs, Activities, and Issues) Construction of two 400kV substations at Bhadla and Ramgarh completed under Tranche 1.Balance scope of project would be undertaken under Tranche 3.Augmentation of two 400kV substations at Akal and Bikaner completed under Tranche 1.Balance scope of project would be undertaken under Tranche 3.Construction of Bap and Kanasar 220/132 kV GSS completed from RRVPNL own funding. Balance scope of project would be undertaken under Tranche 3.Subprojects completed from RRVPNL own funding.Construction of about 602 km of 400kV, 220 kV, 132 kV transmission lines completed under Tranche 1. Balance scope of project would be undertaken under Tranche 3.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.Had been completed under TA 8486-IND: Rajasthan Renewable Energy Capacity Development and Implementation Support.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects An environment assessment and review framework was prepared, outlining the environment safeguard principles and requirements. RRVPNL will undertake environmental due diligence on individual investments based on the environment assessment and review framework and submit quarterly reports on implementation of environmental management plans (EMPs). Under tranche 1, RRVPNL has undertaken all the requirements and complied with related covenants.
Involuntary Resettlement A resettlement framework was prepared outlining the social safeguard principles and requirements. RRVPNL will undertake social safeguard due diligence on individual investments based on the resettlement framework and submit quarterly reports on implementation of resettlement plans for projects. Under tranche 1, RRVPNL has undertaken all the requirements and complied with related covenants.
Indigenous Peoples A indigenous peoples planning framework was prepared outlining the social safeguard principles and requirements. RRVPNL will undertake social safeguard due diligence on individual investments based on the indigenous peoples planning framework and submit quarterly reports on implementation of indigenous plans for projects (as required). Under tranche 1, RRVPNL has undertaken all the requirements and complied with related covenants.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultations were held for each project during their respective design stages.
During Project Implementation Ongoing stakeholder communication and consultations are conducted throughout the project cycle for each projects in the facility.
Business Opportunities
Procurement Goods, equipment, and civil works financed by ADB will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). RRVPNL has undertaken advance procurement actions, including the placement of bidding documents in the market and requested that ADB authorize these actions and allow retroactive financing. RRVPNL will follow competitive bidding procedures acceptable to ADB for public sector transmission investments. Private sector renewable energy developers selling power to utilities will be selected through a competitive process and will enter into supply contracts with their clients. The construction of their facilities will most likely follow turnkey contracts selected through a competitive process. RREC will coordinate with RRVPNL on the choice and sequencing of the development of transmission lines to evacuate the renewable energy produced in the region, including that from wind and solar parks. Retroactive financing will be allowed for up to 20% of the individual loan amount for expenditures incurred 12 months prior to loan signing.
Responsible ADB Officer Karbar, Vallabha R.
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Timetable
Concept Clearance 23 Feb 2012
Fact Finding 06 May 2012 to 21 May 2012
MRM 29 Jun 2012
Approval 26 Sep 2013
Last Review Mission -
Last PDS Update 23 Jun 2022

MFF Facility Concept 0076-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 798.00 Cumulative Contract Awards
ADB 300.00 - 0.00 0.00 %
Counterpart 300.00 Cumulative Disbursements
Cofinancing 198.00 - 0.00 0.00 %

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Rajasthan Renewable Energy Transmission Investment Program (Facility Concept) Procurement Plans Aug 2013