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EESL Signs MoU with DNRE Goa to implement the country’s first Convergence Project

19th November, 2020 International News

Context: Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Ministry of Power and Department of New & Renewable Energy (DNRE), Goa, have signed a memorandum of understanding to discuss rolling out of India’s first Convergence Project in the State.

  • Under the MoU, EESL and DNRE will carry-out the feasibility studies and subsequent implementation of decentralized solar energy projects.
  • EESL shall implement the solar energy projects, establishment of 100 MW of decentralized ground mounted Solar Power projects on government lands to be used for agricultural pumping, replace approximately 6,300 agricultural pumps with BEE star rated energy efficient pumps and distribute approximately 16 Lakh LED bulbs for rural domestic households.
  • MOU signed between EESL and Government of Goa in some sense marks beginning of fresh green revolution.
  • This model is expected to be adopted by other states as this will reduces losses in terms of expenditure on water for farm sector runs into tens of thousands crore rupees in several States.
  • Togetherwith new Roof Top Solar Scheme this will prove to be win win for farmers and States and help them turn into green States.
  • The project will accrue savings of INR 2,574 crores to the State over the period of 25 years, while improving the health of DISCOMs and providing cleaner power.
  • This project will provide clean day time electricity to farmers as well as energy efficient pump sets which would reduce the power consumption as well as T&D losses associated with transmitting power to agriculture and rural feeder networks.
  • The projects will accelerate the usage of renewable energy sources, especially for agricultural and rural power consumption in the State.
  • The projects will also contribute in reduction of peak energy demand through deployment of energy efficient pumping and lighting thus contributing to overall sustainability.
  • In Goa, with the objective of providing clean power at affordable rates, EESL will install solar projects in a first of its kind large scale programme where vacant/unused land provided by the Gram Panchayats/electricity board will be utilized.
  • The solar power plant will be installed near the substation, with capacities ranging from 500KW to 2 MW, depending on the size of the land, this will enable DISCOMs to supply power during the day time and reduce transmission losses.

About EESL

  • A joint venture of NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID, Energy Efficiency Services Limited (EESL) was set up under Ministry of Power to facilitate implementation of energy efficiency projects.
  • EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy efficiency market in India, estimated to at Rs. 74,000 crore that can potentially result in energy savings of up to 20 per cent of current consumption, by way of innovative business and implementation models.
  • It also acts as the resource centre for capacity building of State DISCOMs, ERCs, SDAs, upcoming ESCOs, financial institutions, etc.