MEIL Solar Energy, a subsidiary of Megha Engineering & Infrastructures Limited (MEIL), has signed power purchase agreements (PPAs) with Bangalore Electricity Supply Company (BESCOM) to supply solar power from 76 projects with a cumulative capacity of 618.1 MW.
These projects will operate under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) programme, following the renewable energy service company (RESCO) model.
MEIL Solar Energy will construct the necessary 11 kV transmission lines to link each solar project to substations and oversee operations and maintenance for 25 years. The projects, tendered in January 2023, are expected to become commercially operational within nine months of the agreement. MEIL will handle all required power evacuation approvals.
The agreement requires projects to maintain a minimum generation of 15% of the declared capacity utilisation factor (CUF) for the first ten years, rising to 20% thereafter. The projects will also adhere to the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM) for solar modules. The maximum central financial assistance (CFA) is capped at Rs 10.5 million per MW.
Under Component C, the PM-KUSUM programme aims to solarise up to 1 million grid-connected agricultural pumps, each with capacities of up to 7.5 HP. In January 2023, Karnataka Renewable Energy Development Corporation Limited (KREDL) issued bids to install distributed solar systems for the solarisation of agricultural feeders, targeting 75,000 pump sets.