| Project Detail |
Project Name
Preparing West Bengal Floating Solar Project
Project Number
56334-002
Country / Economy
India
Project Status
Approved
Project Type / Modality of Assistance
Loan
Preparation of floating solar project. The GOWB has requested a project readiness financing (PRF) for the preparation of a floating solar power plant on the Bakreshwar dam reservoir. Although West Bengal has experience in solar PV development, this project will be the first of its kind and magnitude floating on a reservoir. The project will support the state in reaching their RPO targets and decarbonize the power sector. The scope of the PRF will specifically focus on environmental and social safeguards related to projects impacting water bodies. The Department of Power, Government of West Bengal will be the executing agency and West Bengal Power Development Corporation Limited (WBPDCL) will be the implementing agency. The PRF will support WBPDCL to prepare the floating solar project and improve procurement readiness and compliance with ADBs safeguard policies for the ensuing project.
The PRF and the ensuing floating solar project are aligned with the country partnership strategy for India, 2023-2027 by catalyzing climate resilient green growth and supporting the countrys plans for its energy transition. It is in ADBs indicative country pipeline and monitoring (ICPM) and expected to be approved in 2024/2025.
Output 1: Due Diligence, technical studies and safeguard assessments completed. Output 1 will be achieved by (i) undertaking necessary environmental and social surveys, studies and assessments, as per ADBs Safeguard Policy Statement (2009) and ADBs Social Protection Strategy (2001), (ii) conducting due diligence to cover the technical, economic, financial and climate change and disaster risk aspects of the ensuing project, (iii) complete detailed engineering, and (vi) undertaking a strategic procurement planning study and a project procurement risk assessment to identify contract packaging, contract modalities, procurement plans and bid documents, and supporting the bidding process.
Output 2: Institutional Capacity improved. Output 2 will be delivered by (i) capacity training activities for the employees of the implementing agency in the field of floating solar technology, design and project preparation of floating solar projects, and environmental and social safeguards. The training will be delivered in form workshops and classroom training.
Ensuing project. The project developed under the PRF will be the innovative floating solar power plant project, constructed on the Bakreshwar dam reservoir in West Bengal. The final installed capacity of the powerplant will be subject to the outcome of the detail studies produced under the PRF and through WBPDCL. The project has an indicative ADB financing amount of $193 million and is scheduled for approval in 2024/2025.
Project Rationale and Linkage to Country/Regional Strategy
Background. West Bengal is Indias second most densely populated state and the fourth most populous with 96 million people. The annual growth rate of West Bengals GDP has been maintained a rate of 12.82% during 2021-22 for its demand stimulating economic policy, wherein for the same period India has registered a growth of 9.18%. This was supported by faster growth in manufacturing, construction, and services.
Power Sector context. Indias rapid economic development and growing population require a power system that can meet the demand for higher quality and especially cleaner electricity services. Reliable and clean electricity supply remains a major barrier to the development of industry and business and whereas emissions of coal fired power plants still cause global warming and cause all sorts of respiratory health issues. In 2022 West Bengal, including imports from Bhutan, Kashmir and Jammu, was relying on installed generation capacity of 17,500 MW. Only 13% of the total generation is from clean sources such as hydropower and solar photovoltaic (PV). Excluding the power imports, which can be considered relatively clean with a hydropower share of 53%, the share of clean energy generated in West Bengal drops to only 9%.
Solar power target. The Government of West Bengal (GOWB) has committed to provide round the clock quality and clean power to all households in the state through efficient use of natural resources. In view of the target of installing 500 GW of non-fossil fuel power by 2030 at national level, West Bengal State Electricity Regulatory Commission has set a Solar Renewable Purchase Obligation (RPO) target of 6% for all distribution licensees in the state by FY23. The target may further be revised upwards in line with the Ministry of Power guideline regarding nation-wide RPO to meet Indias commitments presented at various climate forums. The present solar RPO compliance is only 1.05% in FY 2019-20 which is met through commissioned capacity of 186.5 MW of Roof-top, ground-mounted, small floating and solarization of agriculture pumps. |
