MNRE Drafts Guidelines for Implementation of Off-grid Solar Power Plants in RESCO Mode

The Ministry of New & Renewable Energy (MNRE) has recently issued  guidelines for Implementation of Off-grid Solar Power Packs/Plants under RESCO Mode.

Guidelines for Implementation of Off-Grid Solar Power Plants in RESCO model under the MNRE Programme 

Under the Phase III of Off-grid and Decentralized Solar PV Applications Programme of the MNRE, off-grid solar power plants of individual size up to 25 kWp can be installed in areas where grid power has not reached or is not reliable.

With an objective to ensure proper repair and maintenance of the off-grid solar power plants to be installed under the Programme and promote efficiencies in operation,The Ministry decided to introduce a RESCO model for such systems. The plants would be eligible for CFA at 90% of the benchmark cost. 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. 

Under the RESCO model the vendor will install and operate the solar power plant of capacity up to 10 kWp for at least 10 years and solar PV plants of capacity above 10 kWp for at least 15 years. Solar power plants will be installed by the RESCO on BOOT basis.

The proposals for installation of off-grid solar power plants will be submitted by the State Nodal Agencies. The MNRE might also appoint an expert PSU for preparation of DPRs, preparing RfS, conducting tendering process for selection of RESCO, monitoring of installation and 4 commissioning, etc.

Bidders must install and commission a project by the successful RESCO within 3 months from placement of the award. Maximum extension of 3 months can be provided to RESCO, provided the reasons for delay are beyond the control of the RESCO. Any delay beyond 3 months will result in cancellation of the award.

To Know more about this order refer to document below:

On 24 April 2020 the Ministry ordered the extension of Off-grid and Decentralized Solar PV Applications Programme –Phase III till 31.03.2021. It was also mentioned that under the extended Scheme, off-grid solar power packs will be installed only in RESCO mode for which the Ministry will be issuing separate Guidelines.