New Delhi, India, April
17, 2017— India’s
State Government of Madhya Pradesh signed project agreements with solar
power companies today 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 mobilize $550 million in private investment and avoid a million
tons 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 utilized 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,
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 mobilizing
$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
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. For more information, visit www.ifc.org