Bihar Issues Tender For Solarisizing Feeders Under RESCO Mode

Bihar Issues Tender For Solarisizing Feeders Under RESCO Mode

The Bihar government has issued a tender inviting solar project developers to accelerate the solarisation of agricultural feeders under Component C2 of the PM-KUSUM scheme. The initiative will be implemented using the RESCO (Renewable Energy Service Company) model, in line with the state’s earlier plans.

The tender was released by the Bihar State Power Generation Co. Ltd (BSPGCL), with a submission deadline of November 25. The project involves the installation of grid-connected decentralized solar plants to power agricultural feeders, with the generated solar energy sold to state discoms NBPDCL and SBPDCL.

According to the tender requirements, eligible sub-stations for feeder-level solarisation must meet specific criteria, including at least one dedicated agricultural or mixed feeder from a 33/11 kV sub-station and technical feasibility to support the proposed capacity.

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The BSPGCL tender outlines that a Power Purchase Agreement (PPA) will be signed between the selected solar power developers and government entities for a period of 25 years. Successful bidders are required to complete the project within 12 months from the issuance of the Letter of Award.

The project mandates a minimum 19% Capacity Utilisation Factor (CUF) annually throughout the PPA term, suggesting the use of mono-PERC or higher-efficiency solar modules.

Under the scope of work, bidders are responsible for procuring raw materials, as well as the installation and comprehensive operations and maintenance of the solar power plants for 25 years.

As part of the PM-KUSUM scheme, developers will be eligible for a central subsidy of 30% of the estimated installation cost, capped at ₹1.05 crore per MW. Additionally, they will receive a subsidy of ₹45 lakh per MW. The selection of bidders will be based on the lowest tariff quoted through competitive bidding.

Background

This comes at a time when Bihar emerged as one of the laggard states when it came to providing hand-holding support to the farmers in the state for off-grid solar pumps. It remained one of the few states where Component B of the PM-KUSUM scheme was not rolled out. Instead, the state government planned to start feder-level solarisation under Component C of the PM-KUSUM scheme. This is also important for the state due to the lack of energy security in the rural areas of the state and higher Aggregate Technical & Commercial (A&TC losses. losses of the state discoms. The state had also received a handsome amount under the Revamped Distribution Sector Scheme (RDSS) to augment its power distribution network and reduce its A&TC losses.