Enthused by the world’s biggest solar power project in Rewa that will be producing cheapest power in India, the Union government has written to all states of the country to incorporate initiatives taken by Madhya Pradesh, so that the target of generating 100 gigawatts of solar power is achieved in quick time and at affordable rates.
Earlier on February 10, after 33 hours of bidding by 18 interested developers, the auction for Rewa Ultra Mega Solar Project of 750 megawatts being developed at Gurh tehsil came to an end at the lowest tariff of Rs 2.97 per unit. Though the effective average tariff of the plant is Rs 3.32 per unit, this is the lowest in the country.
Subsequently, the Union government secretary for new and renewable energy, Rajeev Kapoor, wrote to the chief secretaries of the states on February 14.
“Such low tariff without any capital expenditure support has been obtained on account of very careful structuring of the project risk sharing mechanism”, Kapoor wrote in his letter.
The letter further specifies certain features of the power purchase agreement of the project. It stated, “This tender has shown that it is possible to obtain more economical tariff for solar power projects provided developers, many of them being foreign companies, are given assurance regarding timely payment and assured implementation”.
Addressing the chief secretaries, Kapoor said, “You may like to review these arrangements and incorporate them in solar power projects being developed by your states. This would enable us to achieve the target of 100 gigawatts at a quicker pace and at rates which are very affordable”.
The solar power park – that is being developed by Rewa Ultra Mega Solar Limited – a joint venture of Solar Energy Corporation of India and Madhya Pradesh Urja Vikas Nigam (MPUVN) – will supply 24% of its power to Delhi Metro, meeting its 90% day time power requirements and the remaining power will be sold to the discoms across Madhya Pradesh.
Three firms namely -Mahindrasusten has won the contract for developing the first unit by offering a price of Rs 2.98 for per unit of power, Acme had won the contract for developing second unit by offering a price of Rs 2.97 per unit and Solenergi Power Limited, a company based in Mauritius won the contract of developing the third unit by offering a price of Rs 2.97 per unit.