Description: 

A $200 million program to build electricity transmission infrastructure and at least 4,300 MW of renewable energy installations in the State of Rajasthan to improve generation efficiency, reduce greenhouse gas emissions, and improve transmission reliability.

Background:

India has an annual electricity deficit of 8 percent and nearly 350 million people without access to electricity. The country is heavily dependent on fossil fuel imports to meet its electricity requirements. The Government in its Integrated Energy Policy estimated in 2006 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.

Rajasthan completed the installation of about 1767 MW of wind and 45 MW of solar generation at the end of 2011. The state’s investment plan for renewable energy has set a target for installations of about 8,000 MW of solar and wind projects by 2018. These include private solar and wind power projects primarily in the renewable energy rich resource areas of Western Rajasthan (in Jodhpur, Bikaner, Barmer and Jaisalmer) including the solar park being developed in Bhadla by the Rajasthan Renewable Energy Corporation.

The Program will support transmission facilities for delivering renewable energy to the state and national grid.

Objectives and Outputs:

The proposed Rajasthan Renewable Energy Transmission Investment Program (RRETIP) will finance the construction of state transmission infrastructure to deliver renewable energy from private sector projects in Rajasthan with a target of at least 4,300 MW (7,761 GWh annually) of renewable energy installations.

The program investments will facilitate the creation of transmission capacity to support the distribution of up to 5,700 MW of solar and wind capacity in Rajasthan. Solar and wind energy can be transmitted out of the state with a potential of 8,000 MW by 2018 (compared to a baseline of 2,300 MW in 2012). A target of at least 4,300 MW of renewable energy capacity is expected to be added by year 2018 with support from the program. Assuming a grid emissions factor of 0.7 tons CO2e / MW-h, GHG emission avoided will be about 5.4 Million tons / year CO2e from this new renewable energy capacity. Over an operating period of 25 years, emissions avoided will total about 135 million tons CO2e.

Assuming 400 tons of coal per GWh of electricity produced, the program will facilitate avoided coal consumption of about 3.1 million tons per year. The Investment Program will expand the development of renewable energy sources in Rajasthan and contribute to national energy security. The outcome is expected be a cleaner energy mix and a more efficient and effective generation and transmission system in Rajasthan.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

ADB Project Portal

In the News:
In India, solar surge aims to reshape the country's energy future (Thomson Reuters Foundation, May 13, 2014)

Project Details
Cover Note | Project Document | External Review with Responses | Appendix | ADB Board Approval Letter | Proposed Decision
Approved on July 29, 2013 (Approved Decision)
Approved amount(s):
USD 200.00 million
USD 95,000 (MPIS)


Release of Second Tranche FundingNov 2012 Co-Chair Summary
Approved on February 5, 2013
Approved amount(s):
USD 112.0 million 

Release of First Tranche Funding
Approved on August 17, 2012
Approved amount(s):
USD 88.0 million

Comments and Responses:
France (August 10, 2012)