Rewa Solar Project | 10 Jul 2020

Why in News

Recently, the Prime Minister has inaugurated the 750 MW (Mega Watt) solar project set up in Rewa, Madhya Pradesh.

  • It is in line with India's commitment to attain the target of 175 GW of installed renewable energy capacity by 2022 including 100 GW of solar installed capacity.

Key Points

  • Features:
    • It is one of the Asia's largest solar power project.
    • It comprises three solar generating units of 250 MW each located on a 500 hectare of land situated inside a solar park (total area 1500 hectare).
    • Solar Park:
      • It was developed by the Rewa Ultra Mega Solar Limited (RUMSL), a Joint Venture Company of Madhya Pradesh UrjaVikas Nigam Limited (MPUVN), and Solar Energy Corporation of India (SECI), a Central Public Sector Undertaking.
      • Central Financial Assistance of Rs. 138 crore was provided to the RUMSL for development of the Park.
  • Significance:
    • Grid Parity Barrier: It is the first solar project in the country to break the grid parity barrier.
      • Grid parity occurs when an alternative energy source can generate power at a cost of electricity that is less than or equal to the price of power from the electricity grid.
      • Further, compared to prevailing solar project tariffs of approx. Rs. 4.50/unit in early 2017, it achieved a first year tariff of Rs. 2.97/unit with a tariff escalation of Rs. 0.05/unit over 15 years.
    • Risk Reduction: Its payment security mechanism for reducing risks to power developers has been recommended as a model to other states by the Ministry of New and Renewable Energy.
    • Renewable Energy Project: It is the first renewable energy project to supply an institutional customer outside the state, i.e. Delhi Metro, which will get 24% of energy from the project with the remaining 76% being supplied to the state DISCOMs of Madhya Pradesh.
      • It is also India’s first solar project to get funding from Clean Technology Fund (CTF), which is available at a rate of 0.25% for a 40-year period from the World Bank.
      • The CTF promotes scaled-up financing for demonstration, deployment and transfer of low carbon technologies with a significant potential for long-term greenhouse gas emissions savings.
    • Carbon Emission Reduction: It will help in reducing the carbon emission equivalent to 15 lakh ton of CO2 per year.
    • Global Appreciation: It has also received the World Bank Group President’s Award for innovation and excellence and was included in the book ‘A Book of Innovation: New Beginnings’.

Source: PIB