Madhya Pradesh Power Management Company Limited (MPPM), Delhi Metro Rail Corporation (DMRC) and International Finance Corporation (IFC) have announced a bid for three 250MW solar PV project in Rewa, Madhya Pradesh, according to BRIDGE TO INDIA (New Delhi).
Most of the solar power from the proposed project will be purchased by MPPM, a holding company for all power distribution companies in the state, and DMRC will procure 363 million kWh annually, equivalent to 210MW, from this project through open access route.
The Rewa 750MW project has been in development for almost two years now. According to BRIDGE TO INDIA, this is the largest long-term procurement of open access solar power by a bulk power consumer in India heralding the case for economic viability of solar power. It was originally going to be developed by Solar Energy Corporation of India (SECI) and funded with concessional World Bank financing alongside participation of private developers as minority shareholders.
However, the project structure has been refurbished due to onerous conditions attached with World Bank funding and lack of interest from private developers for minority shareholding. A joint venture between Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja Vikas Nigam Limited (MPUVN), the state implementing authority, will provide solar park infrastructure for the project.
The solar park is likely to secure World Bank financing for development of internal substation and transmission lines. The bid provides 18 months for commissioning of the projects from the date of signing of the Power Purchase Agreements (PPAs). Assuming that the PPAs are signed by December 2016, these projects can be expected to be commissioned by mid-2018.
Source: Solarserver
Photo Credit: Flickr
