Delhi Metro Rail Corp. Ltd (DMRC) will make huge savings by purchasing power from Rewa Ultra Mega Solar Ltd which is implementing the world’s largest solar power project at a single site in Madhya Pradesh, a power ministry statement said.

“There would be huge savings to the Delhi Metro because of per unit cost of power reducing from over Rs4.50 to Rs3.30," the statement said quoting power and renewable energy minister Piyush Goyal, who presided over the signing of DMRC’s power purchase agreement in Bhopal on Monday.

The 750 megawatt (MW) project sharply brought down solar power tariff to Rs3.3 a unit in February this year, the lowest discovered in an auction till then, when three 250MW projects were awarded to Mahindra Renewables Pvt. Ltd, Acme Solar Holdings Pvt. Ltd and Sweden’s Solenergi Power Pvt. Ltd. Subsequently, NTPC’s 250MW project at Kadapa in south-central Andhra Pradesh was awarded for a flat Rs3.15 per unit in an auction last week.

International Finance Corp. (IFC), the private lending and advisory arm of the World Bank Group, which was the transaction advisor for the Rewa project said in a statement on Monday that the project will mobilize $550 million in private investment.

“The Rewa solar park transaction will have an enormous ripple effect, helping create new markets for large solar projects across India and the region," the IFC statement said quoting executive vice president and CEO, Philippe Le Houérou.

“This is the first time that solar power has achieved grid parity, which means that the ambitious renewable energy targets set by the government are within reach," said the IFC statement quoting Rewa Ultra Mega Solar Ltd chairman and principal secretary, government of Madhya Pradesh, Manu Srivastava.

The winning bidders of the project signed two sets of power purchase agreements with the Madhya Pradesh Power Management Corporation Ltd (MPPMCL) and the DMRC. With about 24% of energy from the park being sold to the Delhi Metro, it will meet about 80% of daytime energy requirement of Delhi Metro, the IFC statement said further.

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