| Project Detail |
Project Name
Assam Solar Project
Project Number
57077-001
Country / Economy
India
Project Status
Approved
Project Type / Modality of Assistance
Loan
Technical Assistance
Assam is the second largest state (by area) in Indias northeast region. It also has the largest population and the biggest economy amongst Indias northeast states, contributing around 60% of the regions economy activity. The states 2020/21 per capita gross state domestic product (GSDP) of INR 86,857 ranks it in the bottom quartile nationally. The main contributions to the states economy come from services (41%), and industry (26%), although an estimated 60% of Assams population are involved directly or indirectly with agriculture, a sector which contributed around 12% of the states economic output in 2020/21. Assams proximity to neighboring countries gives it strategic importance: Indias Act East Policy aims to establish stronger trade and business ties with Southeast Asia and other Indo Pacific countries, and Assam is one of the focus states under this policy in terms of access to trade and network connectivity.
Project Rationale and Linkage to Country/Regional Strategy
The project will address the need to rapidly scale-up Assams installed solar PV capacity to meet the targets set by central and state governments. The proposed solution has been designed to meet the state governments desire retain ownership of some solar PV capacity while introducing private sector participation in construction, operations and maintenance, and investment. The main component of the project will support the construction of a 500 MW grid-connected solar PV facility in Assams Karbi Anglong district.
The project will support a joint venture (with 49% public ownership) that will develop a pilot grid-connected battery storage installation. This facility will be used to test the impact on grid stability and frequency regulation of a large intermittent solar generating facility.
The Project will also invest to improve electricity distribution in areas adjacent to the solar PV site.
Funding will also be provided by way of viability gap financing to reduce the offtake tariff from the 250 MW solar PV plant that will constructed under PPP modality on the adjacent site. |
