Introduction

Idea of project

Gujarat is rich in renewable energy resources – 300 days of sunshine, Rann of Kachchh where the land is endless and the sun’s heat relentless. There is a vast scope for energy plantation in its vast wastelands.

GEDA (Gujarat Energy Development Agency), one of the premier organizations has played a pioneering role in the development of a long-term renewable policy and implementing of sustainable energy programmes across the state.

There is a need to reposition renewable not as alternatives out to oust/replace conventional energy sources, but to stress their potential as sustainable sources of energy.

COST ANALYSIS

Investment Cost

ForeignExchange (3908.73)

LocalCurrency(1194.66)

Total Cost (5103.38)

In INR Million

COST ANALYSIS

Contingencies

Foreign Exchange (702.46)

Local Currency (250.31)

Total Cost (952.77)

In INR Million

FINANCIAL MANAGEMENT

ASSESSMENTS:-

Maintained records of fixed assets with yearly physical inspections.

Adequate internal controls including outsourcing the function of Internal audit to firm

Adequate internal controls including outsourcing the function of Internal audit to firm

Training of staff was considered necessary for proper financial management and implementation of the project

FINANCIAL MANAGEMENT

ACCOUNTING

GSP maintained separate project accounts and records by funding source for all expenditure incurred on the project. Project accounts followed & practiced international accounting principles or those prescribed by the government's accounting laws and regulations

Economic Analysis

ECONOMIC RATIONALE The Asian Development Bank supported GSP to successfully address

issues related to market failure

Market failure is evident for solar generation when compared to conventional generation, because of:- High cost of several features High risk associated with large scale production High initial investment required Lack of trained human resources Under developed supply chain

The govt. taken a longer term view and lowered transaction costs associated with solar generation and leveraged economies of scale to reduce cost of the project

Project alternatives & Least cost analysis

The project alternatives considered are based on what would have taken place in Gujarat electricity generation without the project

The without-project scenarios means the least-cost mutually exclusive alternative of producing the same amount of electricity, i.e., 800 (mkWh) per annum

The least-cost alternative to producing relatively expensive solar-generated power is washed local coal-generated power

A coal plant with capacity of 140 MV can produce the same amount of electricity(800mkWh) as GSP with capacity of 500 MV, annually over a 25 yr period

Cost benefit analysis

Consumer benefits (81%) Local environment benefits(16%) Clean Development benefits(3%)

IRR = 13.4% NPV = 65997.49

Conclusion

GSP does not generate adequate economic benefits to justify the costs in absence of additional regulatory measures & current technology. Also the incorporation of local environment benefits (and CDM benefits) does not make a big difference. However, the solar certificate in India adds additional costs to alternatives such as coal power, when the minimum solar generation is not complied with. Once this additional cost is incorporated into the analysis, solar power provides adequate benefits to justify the costs.

Benefits of Gujarat Solar Park

• A socioeconomic and poverty assessment was carried out in communities along the transmission lines and in the vicinity of the proposed solar park.

• To alleviate some of the challenges and constraints that perpetrate poverty and social exclusion in the area, the project incorporates a selected number of value added interventions designed to enhance and meet a range of varied basic but specific needs across targeted populations in the project area.

• Interventions combine project-specific outcomes (e.g., local jobs) with associated outputs conceived specifically to complement and support the loan.

Benefits of Gujarat Solar Park

All interventions are gender inclusive and aim to promote gender equality through the empowerment of women in decision-making roles and by enabling them to actively participate in employment, skills training (education), and energy-based alternative livelihoods.

Prepared for the project; notes that the project will contribute to poverty reduction locally and in the region through.

Provision of livelihood energy-based skills training for up to 100 poor women in target areas in the project area of influence;

Benefits of Gujarat Solar Park

The creation of temporary and permanent jobs;

Public and private sector economic investment and growth;

Improvements to local basic infrastructure, including roads, sanitation, and water supplies;

Provision of skilled and unskilled employment

Pro-poor, socially inclusive, and gender equitable and enhancing activities associated with the project include

• The generation of a significant number of local jobs requiring different skill sets; they will have a direct socioeconomic impact on host communities and contribute to improved livelihoods;

• Provision of skilled vocational training to local people (30% women) to fill the labor demands created from the development of the solar park and transmission project;

Negative points of construction and operation stage

The project activities during construction phase will involve clearing of trees along the route alignment wherever required, excavation for installation of towers, erection of towers, civil works related to transmission line and line stringing.

IMPACT ON ENVIRONMENTAL

RESOURCES

HEALTH AND SAFETY AGRICULTURE

TEMPORARY OUTAGE OF THE

ELECTRICITY

Environment impacts and mitigation measures

ENVIRONMENTAL IMPACTS ASSOCIATED WITH PRE-CONSTRUCTION STAGE

IMPACT ON ENVIRONMENTAL RESOURCES Impact on Air Quality Impact on Noise Levels Impact on surface Water Quality Impact on ground Water Quality Impact on Soils and Geology

  IMPACT ON ECOLOGICAL RESOURCES Wild Life Aquatic Ecology

 

Environment impacts and mitigation measures

IMPACT ON HUMAN ENVIRONMENT

Health and Safety Agriculture Resettlement and Rehabilitation Traffic and Transport Interference with other utilizes and traffic

Environment impacts and mitigation measures

THE IMPACTS OF THE PROJECT ACTIVITIES ON VARIOUS ENVIRONMENTAL ATTRIBUTES ARE

IMPACT ON PHYSICAL RESOURCES:

Impact on Topography Impact on Climate

  IMPACT ON ENVIRONMENTAL RESOURCES:

Impact on Air Quality Impact on Noise Levels Impact on Surface Water Quality Impact on Soil and Geology

Environment impacts and mitigation measures

ENVIRONMENTAL IMPACTS ASSOCIATED WITH OPERATIONAL STAGE

Shock

Noise Generation

Maintenance of Transmission Line and Substation

Oil Spillage

THANK YOU