Energy Efficiency Services Ltd (EESL) will set up a Rs 450-crore decentralised solar convergence project in Goa. EESL and the Department of New & Renewable Energy (DNRE), Goa has signed an MoU for the rolling out of the country’s 1st Convergence Project.
Aim and Benefits of Convergence Project
- Through the convergence project, EESL aims to connect independent sectors like energy storage, solar energy, and LED lights to provide solutions for enabling decarbonisation and affordable energy access.
- The project will speed up the usage of renewable energy sources, especially for agricultural and rural power consumption in the state.
- Along with this, the project will improve the health of DISCOMs and provide cleaner power.
Key Points
- Under the agreement, EESL and DNRE will conduct feasibility studies and subsequent implementation of decentralized solar energy projects.
- EESL will implement the project through the newly-formed subsidiary Convergence Energy Services Ltd, which will install 100 MW of decentralised ground-mounted solar power projects on government lands for agricultural pumping.
- It would also replace agricultural pumps with BEE star rated energy efficient pumps and distribute around 16 lakh LED bulbs for rural households.
- Goa is also the first state to adopt the concept of ‘amortising the cost’ of pumps and LED lights into a Power Purchase Agreement (PPA), which can reduce the debt of DISCOMs.
- In ‘Amortisation’, the cost of an intangible asset is spread over the time of its useful life, so that the expense of acquiring is matched with the revenue it generates.
About EESL
EESL is a joint venture of NTPC Limited, Rural Electrification Corporation and POWERGRID, Power Finance Corporation, Energy Efficiency Services Limited (EESL) that was set up in 2009 under the Ministry of Power for facilitating the implementation of energy efficiency projects. EESL also acts as the resource centre for capacity building of upcoming energy service companies (ESCOs), State DISCOMs, electricity regulatory commissions (ERCs), state-designated agencies (SDAs), financial institutions, etc. EESL is the largest public energy service company (ESCO) of the world.