24 April 2017 2017 09:15 AM GMT

India’s Solar Objectives Get Major Boost with 750MW Rewa Ultra Mega Solar Park

India’s State Government of Madhya Pradesh has signed project agreements with solar power companies making Rewa Ultra Mega Solar Park a reality and helping India get closer to its 100 GW solar energy goal by 2022. IFC, a member of the World Bank Group, is the lead transaction advisor for this project that will mobilise $550 million in private investment and avoid a million tonnes of GHG emissions. The project is led by Rewa Ultra Mega Solar Limited (RUMSL), a joint venture between the Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja Vikas Nigam Limited (MPUVN). The initiative utilised a robust project structure and innovative de-risking mechanisms, paving the way for other large-scale solar power projects in India.

With a record low tariff of US Cents 4.4/kilowatt hour offered through a competitive bidding process, the project achieved the lowest tariffs ever awarded for a solar project in India, bringing solar tariffs in the country on par with fossil fuels for the first time. “The Rewa solar park transaction will have an enormous ripple effect, helping create new markets for large solar projects across India and the region,” said Philippe Le Houérou, IFC Executive Vice President and CEO. “We have partnered with state and national government agencies for years to develop the solar market in India – from rooftops to mega solar parks – and the agreements signed today are the next step in IFC’s efforts to help India be a global leader in renewable energy and secure a clean, sustainable future.”

As transaction advisor appointed by the government of Madhya Pradesh, IFC played a strategic role in advising RUMSL in designing the structure, balancing public and market risks, and creating a competitive auction process. IFC also assisted in developing a unique power scheduling arrangement that enabled the Delhi Metro Rail Corporation to take energy straight from the solar park to power its rail service. “With the Ministry of New & Renewable Energy asking other states to incorporate many key provisions of this transaction into their solar projects, we are very proud that Madhya Pradesh is leading the way in large-scale renewable power developments in India,” said Manu Srivastava, Chairman, Rewa Ultra Mega Solar Limited and Principal Secretary, New and Renewable Energy Department of Government of Madhya Pradesh. “This is the first time that solar power has achieved grid parity in our country, which means that the ambitious renewable energy targets set by the Government of India are within reach. This is truly revolutionary. IFC played a critical role in this record-setting project.”

The 750 MW capacity project was auctioned in three packages of 250 MW each, and will be one of the biggest single site solar projects in the world. The three winning bidders for the project are Mahindra Renewables, ACME Solar, and Solenergie Power. The winning bidders signed two sets of power purchase agreements with the Madhya Pradesh Power Management Corporation Ltd (MPPMCL) and the Delhi Metro Rail Corporation. With about 24% percent of energy from the park being sold to the Delhi Metro, it will meet about 80% of daytime energy requirement of Delhi Metro.

The Rewa solar project will also receive financing from the World Bank, which is helping India deliver on its solar ambitions with more than $1 billion in lending over FY2017, as well as supporting the India-led International Solar Alliance, which aims to promote solar use globally by mobilising $1 trillion in investments by 2030.

India is IFC’s top country exposure, globally. IFC’s committed portfolio in India is over $5 billion as of June 30, 2016. In FY16, IFC committed $1.1 billion in new investments in the country. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships. 

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity.

December 27th 2017
Rooftop PV Presents a $23 Billion Opportunity in India Over The Next 5 Years

India is accelerating development of renewable energy projects to provide cheap, reliable and clean power to its 1.3 billion people. The country’s per-capita on-grid electricity consumption has increased significantly over the four years; due to increased industrial activity, higher uptake of electrical appliances by residential electricity users and the addition of new consumers to the grid. During this period, the cost of electricity from rooftop PV has halved, due to fierce competition in the market and a drop in equipment prices. In contrast, average retail electricity rates have increased by 22% in the same period. This has made rooftop PV cheaper than commercial and industrial grid tariffs in all major states in India.

February 5th 2018
Chinese Solar Surge Fuels Overall Global Growth In Clean Energy Investment

World clean energy investment totalled $333.5 billion last year, up 3% from 2016 and the second highest annual figure ever, taking cumulative investment since 2010 to $2.5 trillion. An extraordinary boom in photovoltaic installations made 2017 a record year for China’s investment in clean energy. This outpaced changes elsewhere, including jumps in investment in Australia and Mexico, and declines in Japan, the U.K. and Germany. The figures up 3% from a revised $324.6 billion in 2016, and only 7% short of the record figure of $360.3 billion, in 2015.

February 5th 2018
European Parliament Gives A Resounding Vote In Favour Of Clean Energy In Europe

European lawmakers have called for a renewable energy target of 35% for 2030 – rather than the 27% which the European Commission proposed in 2016. The MEPs have now backed measures substantially raising the European Union’s clean-energy ambitions. By 2030, more than one-third of energy consumed in the EU should be from renewable sources such as wind and solar power. The measures are intended to help cut carbon dioxide emissions. The EU is the world’s third-largest emitter of greenhouse gases after China and the United States, releasing about 10% of global emissions. 

December 15th 2017
Beyond Petroleum. BP Returns To Solar; Following Shell, Total Into Clean Energy

BP and Lightsource have announced a strategic partnership combining BP’s global scale with Lightsource’s solar expertise. BP will acquire 43% equity share in Lightsource for $200 million, with the majority of the investment funding Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP. BP is not alone in moving away from oil and gas and towards clean energy. Anglo-Dutch Shell is purchasing electric car infrastructure companies, France’s Total is acquiring battery storage firms and Norway’s Statoil is pioneering floating wind farms.


 

   

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