The Indraprastha Power Generation Company (IPGCL) has invited bids for the development of rooftop solar projects in Delhi, totaling 21.5 MW.
Out of this capacity, 1.5 MW will be developed under capital expenditure (CAPEX) model, and 20 MW will be developed under the renewable energy service company (RESCO) model.
The projects to be developed are proposed to be sized between 1 kW to 500 kW under the CAPEX model and between 25 kW to 500 KW under the RESCO model. The scope of work includes the site survey, design, engineering, manufacture, supply, storage, civil work, erection, testing and commissioning of the grid-connected rooftop solar projects including the operation and maintenance for five years for CAPEX projects and a period of 25 years for RESCO projects after commissioning.
Further, the projects developed on government-owned buildings would also qualify for capital subsidy incentives. Incentives for projects developed under CAPEX should be based on target achievement within the allocated time and are given below:
- 80% and above target achievement within the sanction period: Incentive at 25% of the project cost arrived through competitive bidding or 25% of the benchmark cost, whichever is lower
- Below 80% and above 50% within the sanction period: (including 50%) target achievement: Incentive @15% of the project cost arrived through competitive bidding or 15% of the benchmark cost, whichever is lower
- Below 50% and above 40% within the sanction period: (including 40%) target achievement: Incentive @10% of the project cost arrived through competitive bidding or 10% of the benchmark cost, whichever is lower
- Below 40%: Nil
Similarly, incentives for projects under the RESCO model are as follows:
Bidders applying for RESCO projects are expected to submit year on year tariff bids for 25 years assuming a discounting rate of 11%. The maximum allowable tariff under this tender has been set at ₹4.53/kWh ($0.065). IPGCL has also attached a list of proposed buildings on which the projects can be developed. The last date of submission of bids is July 4, 2019. Bidding will be processed through an e-reverse auction mechanism.
Delhi’s major distribution company (DISCOM), BSES Rajdhani Power Ltd (BRPL), launched an initiative called Solar City in the national capital last year. This initiative falls in line with the union government’s endeavor to expand the use of green energy.
Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.