Seventh months after getting the nod from the Joint Electricity Regulatory Commission (JERC) for its implementation, the Renewable Energy Service Company (Resco) model is yet to become a reality.
Now, the wait for installation of rooftop solar power stations under the Resco is likely to get longer. The UT administration, it is learnt, is considering reinitiating the tendering process started nearly four months back for the empanelment of the Resco. The reason: while the administration was expecting firms to quote the build-operate-transfer (BOT) period of around 15 years, the companies participating in the tendering process have quoted 23 years’ BOT period.
Two firms, one each from Delhi and Chandigarh, are running for the Resco model empanelment.
“The administration wants the BOT period to be shorter so that the Resco transfers the ownership of the rooftop solar power plants installed to house owners as early as possible,” said an official.
After discussions with firms on cutting down the BOT period, they have agreed to reduce it to 22 years.
“The final proposal has been submitted with the UT administration. Now, it will take a final decision whether to accept the 22-year BOT period or issue a fresh tender to get a lower bid. If the administration accepts the 22-year period, the letter of intent can be issued within a week, so that the work can start at earliest. If the administration directs a fresh tender, it will take another couple of months before the project gets going,” said the official.
Under the Resco model, a third party (Resco) will invest and install solar power plant system on consumers’ premises.
Upfront installation and commissioning costs for the system will be borne by the Resco without any investment liability for the rooftop owner/consumer. There will be a BOT period wherein the Resco will provide standard warranty of system functioning, maintain and run the plant at its own cost.
The power generated by the system on the consumer’s premises will be first supplied to and used by the consumer. The subsidised rate fixed for it is Rs 3.23 per unit of electricity.
The private company will supply a minimum of 1,250 units of electricity per kWp per annum to the consumer. In case of generation less than 1,250 units of electricity per kWp per annum, a penalty per unit will be paid by the firm to the consumer.
The excess plant power, after consumer’s consumption, will be fed to the grid and accounted for under the prevailing Net Metering Regulations, 2019.
After completion of the BOT period, the system will be transferred to the consumer free of cost. After the transfer, the billing and accounting will be as per prevailing Net Metering Regulations, 2019.
