As per the guidelines, under Phase-III of the program, individual-sized off-grid solar power plants of up to 25 kW can be installed in areas where grid power is not reached or is not reliable
New Delhi (Natural Energy News): The Ministry of New and Renewable Energy (MNRE) on Thursday implemented new guidelines for the implementation of off-grid solar power plants under RESCO and PPA modes.
This is in reference to an earlier order of the Ministry that extended Program Phase-III of off-grid and decentralized solar photovoltaic (PV) applications by 31 March 2021.
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According to the guidelines, under Phase-III of the program, individual-sized off-grid solar power plants of up to 25 kW can be installed in areas where grid power is not reached or is not reliable.
The scheme is applicable only for setting up of off-grid solar PV plants through RESCO mode with Central Financial Assistance (CFA) of 90% benchmark cost of the system in the North-Eastern states.
"This CFA empowered by MNRE will decrease the financial limitation to a considerable level, resulting in much-increased prices per unit terms due to the reduced size of plants and the necessity for storage batteries," it said.
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Under the RESCO model, the ministry proposed that the vendor install and operate a solar power plant with a capacity of up to 10 kW for at least 10 years and a solar PV plant of more than 10 kWp capacity for at least 15 years. It states that RESCO will build solar power plants on a transfer-on-transfer basis.
According to the ministry, if the power producer fails to supply the daily minimum guaranteed power (DMGP) or the power required by the beneficiary, the developer is liable to pay penalty for units supplied less than DMGP at the rate specified in the PPA Will happen.
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It states that the penalty may be twice the rate paid by the developer to the beneficiary.
The RESCO company will be selected through an open competitive bidding process, which will be done by the implementing agency and the project must be commissioned within three months from the scheduled time of award, which is stated in the guidelines.
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