Record PPAs signed for rooftop solar power plant under RESCO

Source: The Hitavada      Date: 30 Sep 2018 10:32:11


Staff Reporter,

Madhya Pradesh witnessed a solar revolution on Saturday, when 291 Government colleges, 124 engineering colleges/polytechnics/ITIs and 12 universities got the advantage of solar energy without any capital investment. Solar projects on rooftop of these buildings will be set up under Renewable Energy Service Company (RESCO) mode by private investors, who would supply electricity to these buildings at rates far below prevailing rates.  Total 427 Power Purchase Agreements (PPAs) between various educational institutions and private developers were signed in a glittering ceremony at Academy of Administration, Bhopal on Saturday.

The ceremony was organised in presence of Vijendra Singh Sisodiya, Chairman, MP Urja Vikas Nigam, Manu Srivastava, Principal Secretary, New and Renewable Energy Department, Neeraj Mandloi, Principal Secretary, Higher Education Department, Dr Sanjay Goyal, MD, MP Madhya Kshetra Vidyut Vitaran Company and Ajit Kumar, Commissioner, Higher Education Department.

As many as 291 Government colleges in the State will be supplied power at the rate of Rs 2.21 per unit.
Over 124 Government engineering colleges/polytechnics/ITIs will be supplied power at the rate of Rs 2.35 per unit. Twelve universities will get power at Rs 1.91 per unit. Rates will increase by 3% every year and, thus, double at the end of 25 year project period.

Saving in Government colleges across the State is estimated to be around Rs 4 crore in first year. Saving during project life of 25 years will be Rs 144 crore with Net Present Value of over Rs 50 crore. Similarly, first year saving to Government engineering colleges will be Rs 1 crore with project life saving of Rs 39 crore (Net Present Value of Rs 13.5 crore).

Under the RESCO project, responsibility of maintenance of solar systems for first 25 years will be of the developer. Since the developer will get paid only for electricity supplied, there is a natural incentive to properly maintain the system.

MP’s RESCO Project is an expression of commitment of Government of India and Madhya Pradesh Government towards Renewable Energy as also improvement of educational institutions in the State.
Savings by educational institutions will be used to improve their infrastructure. Higher Education Department, Technical Education Department and New and Renewable Energy Department of Madhya Pradesh have worked together to ensure success of this programme.

RESCO Project of Madhya Pradesh implemented by MP Urja Vikas Nigam Limited has been appreciated throughout the country as also outside. The project has been executed with technical assistance from World Bank and International Solar Alliance. Manu Srivastava, Principal Secretary, New and Renewable Energy Department, informed that they have already made presentation before ambassadors of West Africa on Ghana on September 11, 2018, ambassadors of African countries on September 17, 2018, and ambassadors of Asian countries on September 19, 2018 to acquaint them with the RESCO model of Madhya Pradesh. While addressing PPA signing ceremony organised in Bhopal today, Vijendra Singh Sisodiya, Chairman, MPUVN stated that RESCO Project is a testimony to numerous innovations carried out by the State in field of solar energy. He stated that Madhya Pradesh has succeeded in 750 MW Rewa Project. Now, we want to create a small Rewa on every rooftop of the State”. Chief Minister Shivraj Singh Chouhan expressed MP’s commitment for meeting the renewable energy target set by the Prime Minister of India, he stated, “Madhya Pradesh intends to be one of the leading states to meet our country’s obligations for renewable energy. Further, we are doing it in a manner that leads to savings to our departments and money saved will be used for further improvement of our educational institutions.”

Developers chose to set up solar systems in government colleges and engineering colleges is M/s Azure Power Rooftop (Genco) Private Limited. The developers selected for government universities is M/s. Mundra Solar PV Limited. As many as 31 companies have participated in the tender and rates obtained were one of the lowest in the country.