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Environmental Impact Assessment (EIA) facilitates identification of potential impacts and development of mitigation measures to reduce significant adverse impacts and foster sustainable development. Each country has its own requirements on EIA for energy related projects.

EIA is carried out in order to assess the positive and negative influences that a proposed project can create in an environment. These influences are analysed through collecting primary and secondary data about the environmental conditions in that area, from the project site.

Number of crucial steps has to be followed during the EIA and it is very important that all these steps be completed appropriately to ensure the environmental integrity. EIA should be conducted by experts knowing the factors that affect the environment. Stakeholder consultations should be done at the earliest, when the project is proposed and should be presented with transparency. In general, EIA needs to be presented with reliable and authentic information, justifying the establishment of the project. Most of the projects have failed due to negligence of the above aspects.

Project proponents are responsible for the preparation of EIA report with the help of external consultants.