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.

June 23rd 2017
Indian Firm Wins 1.8GW Sweihan Order; The Largest Solar PV Project In The World

Indian company Sterling and Wilson has won the contract for the world’s largest single location solar PV project. The Sweihan project in Abu Dhabi is for turnkey EPC as well as O&M; and is jointly developed by Japanese investment firm Marubeni, Chinese solar company Jinko Solar, and Abu Dhabi Water and Electricity Authority (ADWEA). It will deliver a capacity of 1177 MWp, surpassing the current largest 850 MWp single location plant in China. In March 2017, Marubeni and Jinko had signed a 25-year PPA with ADWEA on a tariff of $0.0242/kWh, making Sweihan also the plant with the lowest electricity price so far.

June 20th 2017
EDF, Canadian Solar Join Forces For One Of The Largest Solar Projects In LATAM

EDF Energies Nouvelles has acquired an 80% interest in the Pirapora II PV project (115 MWp) from Canadian Solar Inc., which is retaining a 20% stake and manufacturing the PV panels locally. It marks the latest step by EDF in Brazil’s renewable energy sector. With this addition, it now has 489 MW under construction, consisting of 183 MW (wind) and 306 MWp (solar). The project is located close to Pirapora I (191 MWp), also jointly owned by both companies. With a total installed capacity of over 300 MWp, the energy generated by both projects will cover the annual electricity consumption of 323,000 Brazilian homes.

June 7th 2017
Solar Power Exceeds Wind Installations; Can Surpass 80GW In 2017, 1TW In 2021

SolarPower Europe (SPE) has launched the ‘Global Market Outlook for Solar Power 2017-2021.’ The report confirms 2016 as another record year for solar, with global annual additions for solar growing by 50% with 76.6 GW installed. There’s now a total worldwide solar power generation capacity of 306.5 GW. James Watson, CEO of SPE said: “When looking at solar, the cost reductions experienced and predicted outstrip all other power generation technologies. Today, utility-scale solar is already cheaper than new gas, coal and nuclear power plants.”

June 16th 2017
New BNEF Report Highlights A Massive Shift to Wind And Solar, While Coal Fades

A new independent report from Bloomberg New Energy Finance (BNEF) states that clean energy such as wind and solar will account for almost 75% of investment in power generation worldwide, between now and 2014. New Energy Outlook 2017 estimates that overall $10.2 trillion will be spent on power generation technology in the next 22 years, with $7.4 trillion being spent on renewables. This year’s forecast sees solar energy costs dropping a further 66% by 2040, and onshore wind by 47%, with renewables undercutting the majority of existing fossil power stations by 2030.