Everything You Need to Know About Asia’s Largest Solar Power Project at Rewa, Madhya Pradesh

Prime Minister Narender Modi inaugurated Asia’s Largest Solar Power Project at Rewa, Madhya Pradesh. Here is all you need to know about the ambitious project.

The 750 MW ultra mega solar power plant spread over 1590 acres is located in the Rewa district of Madhya Pradesh. The solar park has been developed by Rewa Ultra Mega Solar Limited, which is a joint venture of Madhya Pradesh Urja Viakr Limited and Solar Energy Cooperation of India. 

Central financial assistance of 138 crore rupees was provided to Rewa Ultra Mega Solar Limited for the development of the park. The project comprises of three solar generating units of 250MW each. Located on a 500-hectare plot of land inside the solar park with a total area of 1500 hectares

What Is So Unique About this Ultra Mega Solar Project?

This project is one of the largest single-site solar power plants in India and the world. It was also the first solar project to break the grid parity barrier. Grid parity is the point when the cost of alternative energy becomes equal to or less than the electricity from conventional energy sources such as fossil fuel. The project will generate 750MW of electricity and was established with an investment of 4500 crore rupees.

Compared to the prevailing solar project tariffs which were approximately Rs4.5 in early 2017, c this project achieved historic results. The first year’s tariff is set at Rs2.5/unit with a tariff escalation rate of Rs 0.50/unit over 15 years. In fact, a levelised rate of Rs 3.30/unit over the term of 25 years has also been set up.

The project will also reduce carbon emission equivalent to approximately 15 lakh ton per year. Additionally, this is the first project to get funding from the World Bank and Clean Technology Fund in India. It is in fact, the first solar project funded by the World Bank in the country. 

Moreover, the process of reverse bidding was tried for the first time in India under this project. It comprises of a three-tier payment security mechanism, which is another first in India.

Who Will be the Off-Takers?

  1. Madhya Pradesh Power Management Company Limited- 76%
  2. Delhi Metro Rail Corporation- 24%

This project is being acknowledged for its robust structuring and innovation, not only in India but also in other parts of the world. Its payment security mechanism in reducing risk to power distributors has been recommended as a model to other stated in the country. The project is also the first renewable energy power project to supply to an institutional customer outside the state i.e, Delhi Metro Rail Corporation. 

Potential the Project Holds

This project will help India in achieving its target of 100 GW of solar power capacity by 2025. The prime minister of the country also twitted about the project saying- “ The project will add momentum to our commitment of increasing renewable energy capacities by 2022.

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