Jaipur: The Rajasthan Renewable Energy Corporation Ltd (RRECL) has issued a call for bids to establish 201 MW of grid-connected solar projects. These projects are intended to power water-supply connections managed by the Public Health Engineering Department (PHED) under the Virtual Net Metering (VNM) framework.
First Phase of Larger Initiative
Released on June 12, this tender represents the initial phase of a comprehensive 500 MW programme. The overarching goal is to reduce electricity expenses for one of the state's most energy-intensive public services. The deadline for bid submissions is July 14.
Official Statement
Rohit Gupta, Chairman and Managing Director of RRECL, confirmed that the PHED solarisation initiative is a key component of a broader strategy to install 700 MW of solar capacity across government offices and public infrastructure. This plan is projected to yield savings of nearly Rs 10,000 crore over a 25-year period. The initiative employs two models: Hybrid Annuity Mode (HAM) and Virtual Net Metering (VNM).
Gupta elaborated: "Under HAM, 200 MW will be deployed on government building connections, expected to save Rs 4,000 crore, or about Rs 13 crore monthly. The larger VNM component involves 500 MW for PHED systems, projected to save Rs 6,000 crore, or Rs 20 crore monthly."
Financial and Operational Benefits
According to RRECL, the programme will lower operational costs and enhance the financial sustainability of water-supply operations, which are among the state's largest electricity consumers. The 201 MW tender envisions ground-mounted solar plants situated near multiple 33/11 kV substations within the Jaipur Vidyut Vitran Nigam Ltd (JVVNL) area. The generated power will be credited against PHED consumption across the state.
Implementation Model
Gupta noted that the projects will be developed under the Renewable Energy Service Company (RESCO) model. In this framework, private developers will finance, build, and operate the plants for 25 years, eliminating upfront costs for the government. The remaining capacity under the 500 MW VNM programme will be rolled out in subsequent phases, contingent upon technical clearances.
Significance of VNM
Gupta highlighted that this initiative is among the first large-scale government applications of VNM in Rajasthan. Unlike rooftop systems, VNM allows a single solar plant to supply multiple dispersed connections by injecting power into the grid and adjusting bills accordingly. Experts view this as a transformative approach for departments, municipalities, and institutions with widely distributed electricity connections.
Market Response
Industry observers anticipate strong participation from developers and investors, positioning the programme as one of India's largest government-led solarisation efforts.
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