MNRE introduces guidelines for off-grid solar photovoltaic plant implementation
The final guidelines for the implementation of off-grid solar plant in RESCO and PPA mode have been issued by the MNRE.
On Thursday the Ministry for New and Renewable Energy (MNRE) introduced fresh guidelines in RESCO and PPA model for implementing off-grid solar power plants. This is in addition to the ministry’s earlier order that had extended the off-grid and decentralized solar photovoltaic (PV) applications programme – Phase-III, till March 31, 2021.
The final guidelines in the context of phase III of the MNRE Off-grid and Decentralized Solar PV Applications Programme state that the individual size that off-grid solar plants up to 25 kWp can be installed in areas where grid power is not reached or is not reliable.
In addition, it was stated that such plants should primarily be intended to supply electricity to governmental schools, hostels, panchayats, police stations, and other institutions of public service.
The scheme has been extended till March 31, 2021, and is applicable to the North-Eastern states, for the installation of off-grid solar PV plants through RESCO mode with 90 percent benchmark cost of Central Financial Assistance (CFA).
The guidelines stated that “This CFA provided by the MNRE would reduce the financial burden to a significant level, which otherwise results in very high tariff in per-unit terms due to smaller size of plants and requirement of storage batteries.”
Key Features of Guidelines:
While, under the CAPEX model, off-grid solar power plants are guaranteed by vendors for 5 years.
However, under the RESCO model, the Ministry proposed that the vendor would set up solar power plants of up to 10 kWp capacity for at least 10 years and solar PV plants of more than 10 kWp capacity for at least 15 years. This will increase the guarantee period.
The guidelines added that the solar power plants need to be installed under RESCO mode on a build-own-operate-transfer (BOOT) basis.
According to the ministry, the manufacturer will be liable to pay a penalty on units supplied less than the DMGP at a rate set out in the PPA if the power generator fails to provide a regular minimum assured power (DMGP) or power requirements of the beneficiary…
“Twofold the cost of supply of power to the beneficiary by the developer may be the penalty,” as per the guidelines.
In regards to the selection process of the RESCO company, the guidelines suggest the selection will be done through open competitive bidding by the implementing agency and within three months of the placement of award.
For more information please refer to the MNRE Guidelines document here.
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