India: Enel Green 300 MW Solar Project - Rajasthan

OBJECTIVE

The project objective is to promote electricity generation from solar energy resources.

DESCRIPTION

The project involves the development, construction, and maintenance of a 300MWAC solar power project in Bikaner District, Rajasthan, India. Offtake of the project will be underpinned by a 25-year Power Purchase Agreement that will be signed with the Solar Energy Corporation of India.

ENVIRONMENTAL AND SOCIAL INFORMATION

Policies and Standards. The proposed project is being considered alongside IFC and has been prepared in accordance with IFC Sustainability Framework comprising the Policy on Environmental and Social Sustainability, Performance Standards (PSs), and Access to Information Policy. To ensure a harmonized approach to addressing the environmental and social (ES) risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (ESP), IFC’s PSs are applicable for this Project in lieu of AIIB’s ESP. AIIB has reviewed IFC PSs and is satisfied that: (i) it is consistent with AIIB’s Articles of Agreement and is materially consistent with AIIB’s ESP, including the Environmental and Social Exclusion List and relevant Environmental and Social Standards; and (ii) the monitoring procedures that are in place are appropriate for the Project. The Project has been assigned Category “B” in accordance with IFC PSs, which is equivalent to Category B if AIIB’s ESP were applicable, due to the potentially limited adverse ES risks and impacts that are generally site-specific, largely reversible, and readily mitigated through implementation of good international industry practices.

An Environmental and Social Impact Assessment (ESIA) including an Environmental and Social Management Plan (ESMP) has been developed. An ES due diligence (ESDD) was performed and an Environmental and Social Action Plan (ESAP) has been prepared with time-bound actions together with a tailored monitoring program that the EGP has committed.

The ESIA has identified the potential impacts on biodiversity, including loss of habitat, impacts on bird species due to collision and electrocution hazards and heat-related incidents. There are no Protected Areas or Important Bird Areas (IBA) within a 5km radius of the project site. A separate Biodiversity Study was conducted which shows the presence of threatened and migratory species of birds in the study area, but no Critical Habitat values for these species. Other adverse environmental impacts are likely to be localized and temporary. Mitigation measures are proposed in the ESMP to address the potential negative impacts, labor and health and safety issues. The cumulative impacts of this project and other renewable power projects in the same region are not considered significant while some positive socio- economic cumulative impacts are expected.

The project is expected to contribute to GOI’s renewable energy target of 2022. The project is estimated to result in avoidance of GHG emissions of approximately 592,174 tons of CO2 equivalent annually.

Several consultations were conducted as part of the ESIA preparation. An Environmental and Social Review Summary and the ESAP are disclosed on April 8, 2021 on IFC website. A SEECA (Social, Environmental and Economic Context Analysis) study has been prepared in October 2020, including social baseline, stakeholder identification and the distribution of project benefits, as well as a Creating Shared Value (CSV) Action Plan. The contractors will develop site- specific Stakeholder Engagement Plans (SEPs) for the construction and the operation phases.

Grievance Redress Mechanism (GRM). A GRM will be established for project-affected people prior to the first disbursement as required in the ESAP. The information of the GRM will be disseminated via the SEP. The contractors will also develop and implement GRM for workers during the construction and operation phases.