A Memorandum of Understanding was recently signed between the Ministry of New and Renewable Energy and Ministry of Petroleum and Natural Gas for enhancing energy security along with clean energy development through investments in solar, wind and other renewable energy projects.
As per the MoU, two Special Purpose Vehicles will be set up with the objective of promoting deployment of technologies that supplement conventional fossil fuel based power generation, giving boost to development of large scale grid connected renewable energy projects and implementation of off-grid applications.
The first SPV is going to focus on installation of large scale grid connected power generation plants based on renewable energy. Oil and Natural Gas Corporation will be the lead partner in the SPV along with equity participation from Oil India Limited, GAIL, Engineers India Limited and PSUs under MNRE – Solar Energy Corporation of India and Indian Renewable Energy Development Agency.
The second SPV is aimed at setting up renewable energy off-grid projects using advanced technologies and market based business solutions to promote access to the energy deficient population. Oil marketing company, Indian Oil Corporation Limited will be the lead partner in the SPV along with equity from Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. SECI and IREDA will also have representation.
The two SPVs are expected to leverage the strength of oil and gas companies in promoting renewable energy projects. They will function independently like commercial organizations but at the same time utilize various promotional schemes of MNRE and state governments for the purpose.
EIL has been assigned the task of preparing the feasibility report within three months after which the SPVs will be incorporated.