The Prime Minister of India recently inaugurated a 750 MW solar project in Rewa, Madhya Pradesh. This significant development is part of the nation’s commitment to achieve an installed renewable energy capacity of 175 GW by 2022, which includes 100 GW of solar power.
Key Features of the Solar Power Project
Identified as one of Asia’s most substantial solar power projects, this installation consists of three 250 MW solar generating units spread over 500 hectares of land within a solar park of 1500 hectares in total.
The Creation of the Solar Park
Rewa Ultra Mega Solar Limited (RUMSL), a joint venture between Madhya Pradesh UrjaVikas Nigam Limited (MPUVN) and Solar Energy Corporation of India (SECI), developed the solar park. The Central Government provided financial assistance of Rs. 138 crores to RUMSL to promote the development of this park.
Breaking the Grid Parity Barrier
Paving the way for the future, this project is the first solar initiative in India to break the grid parity barrier. Grid parity happens when an alternative energy source can produce power at costs lower or equivalent to electricity from traditional grids. In early 2017, the prevailing rates for solar projects were around Rs. 4.50 per unit. However, this project boasts a first-year tariff of Rs. 2.97 per unit, with an escalation of Rs. 0.05 per unit over 15 years.
Risk Reduction through Payment Security Mechanism
This solar project has implemented a payment security mechanism, reducing potential risks to power developers. As a result, the Ministry of New and Renewable Energy has recommended this model to other states.
Pioneering Renewable Energy Project
Embodying a milestone for renewable energy projects, this solar park is the first to supply an institutional customer outside its host state. The Delhi Metro will receive 24% of the energy output, with the remaining 76% being supplied to the state DISCOMs of Madhya Pradesh.
Funding from Clean Technology Fund (CTF)
The project is also the first in India to receive funding from the Clean Technology Fund available at a rate of 0.25% for a 40-year period from the World Bank. The CTF encourages increased financing for the deployment and transfer of low carbon technologies with significant potential to reduce long-term greenhouse gas emissions.
Reducing Carbon Emissions
The new power project is expected to decrease carbon emission equivalent to 15 lakh ton of CO2 annually, thereby contributing largely to environmental protection efforts.
Global Recognition
The Rewa solar project has attracted global appreciation. It is the recipient of the World Bank Group President’s Award for innovation and excellence, and its achievements were highlighted in ‘A Book of Innovation: New Beginnings’.
