Ministry of Railways (MoR) and RITES Ltd. have formed a joint venture companybetween MoR and RITES namely Railway Energy Management Company (REMC) in the shareholding pattern of 49% & 51% respectively for undertaking the projects of Indian Railways related to harnessing green energy like solar and windmill power plants, power trading activities, transmission lines and power evacuation planning, energy conservation initiatives, efficient coordination in power generation through captive power plant, energy audits etc.
REMC will also facilitate in faster execution of renewable energy and energy conservation works with the aim to generate green power and reduce energy bill of Indian Railways.
REMC has already been planned to set up 157.5 MW of windmill in the wind rich states of the country by REMC. Out of this, REMC will be setting up 25 MW wind mill plant in the state of Rajasthan for which a consultancy contract on Centre for Wind Energy Technology (C-WET), an arm of Ministry of New and Renewable Energy, has been awarded.
1.0 Construction transmission lines by REMCL with PGCIL :
REMCL has signed an MoU with PGCIL for undertaking construction of Railway’s 132 kV transmission corridors having connectivity with CTU network at 220 /400 kV system.
REMCL is finalising this model in Design Built Finance Operate and Transfer (DBFOT) model where the entire financing of this model.
2.0 Procurement of power through bi-lateral arrangements :
The cost of power in Maharashtra has recently gone up. REMC is exploring the possibility of procuring power at a lower tariff through bi-lateral arrangements from Gujarat, where the power is available at economic tariff.
3.0 Power Trading Activity
Presently IR is paying fixed electricity charges throughout the day. However, electricity is available at lower tariff during night time i.e. off peak period. Initiatives like power trading, short term and bilateral power purchase activities solar power etc. have potential of substantial saving in the electricity bills of IR.
REMC is executing its first pilot project of power trading activity at Diwana Traction Sub-station of NR in the state of Haryana which is expected to be functional by April 2014 & annual saving of about Rs.8 crore is expected. The agreement between REMC, NR and the trader member (PTC) has been signed.