• Lowest ever tariff using India made solar panels was discovered in auction on 06^th December 2024 for 170 MW Neemuch Solar Park.

• The endearing tariffs indicate that investors’ interests are positive towards investment in Madhya Pradesh.

• Rewa Ultra Mega Solar Limited (RUMSL) approach to optimize the project risk, to offer a true plug-and-play project, involves meticulous planning, robust risk mitigation strategies, streamlined approvals, pre-development of necessary infrastructure, and the provision of ready-to-use land with clearances, making it highly attractive to investors

In a landmark development for India’s renewable energy sector, the Neemuch Solar Project in Madhya Pradesh has achieved a record-low tariff of ?2.15 per unit, marking a significant step toward sustainable energy. The project aligns with India’s commitment to the "Panchamrit" strategy outlined during COP 24, underlining the nation’s resolve to combat climate change.

The Chief Minister of Madhya Pradesh, Shri Mohan Yadav, emphasized the state’s leadership in clean energy, stating that addressing climate change is a shared responsibility of all states, not just the central government. “Solar energy is at the heart of our economy today, reducing energy costs for industries and making life easier for farmers with affordable power,” he said.

Madhya Pradesh: A Renewable Energy Leader

Madhya Pradesh has made remarkable strides in renewable energy, increasing its capacity by more than 14 times in the last 12 years to reach nearly 7,000 MW, which now constitutes 21% of the state’s total energy capacity.

The state has been at the forefront of solar innovations, starting with the Rewa Solar Project, which delivered electricity at rates cheaper than coal-based power. This project also powers the Delhi Metro, showcasing its national significance. Building on this success, the Agar-Shajapur-Neemuch projects now supply electricity to Indian Railways and seven other states, including Maharashtra, Gujarat, and Uttar Pradesh.

In October 2024, Madhya Pradesh commissioned the 278 MW Omkareshwar Floating Solar Project, the world’s largest floating solar installation, further cementing its position as a leader in renewable energy.

Record-Breaking Tariff

The tender for Unit 3 (170 MW) of the Neemuch Solar Project concluded on December 6, 2024, through an e-reverse auction, securing the lowest tariff of ?2.15 per unit. This rate is 33 paise lower than SECI's best tariff of ?2.48 per unit and the lowest in the country since the imposition of the ALMM regulation on April 1, 2024.

Key to Success

The success of the Neemuch project can be attributed to the plug-and-play infrastructure model implemented by RUMSL (Rewa Ultra Mega Solar Limited). Developers benefit from pre-developed facilities, including substations, land, and connectivity, significantly reducing investment risks.

A robust three-tier payment security mechanism, backed by state government guarantees, further enhances investor confidence. Developer-friendly reforms and risk mitigation strategies have ensured competitive tariffs, making the project a model for the renewable energy sector.

Economic and Environmental Benefits

The project is expected to attract investments worth ?800 crore, generate direct and indirect employment opportunities, and reduce carbon emissions by 3.34 lakh tonnes annually by replacing coal-based power.

Recognition for Excellence

The Chief Minister congratulated the Renewable Energy Department, RUMSL, and all stakeholders, including Indian Railways, the World Bank, IFC, IREDA, and Deloitte, for their contributions to this achievement. This success not only advances Madhya Pradesh’s renewable energy goals but also reinforces India’s leadership in global climate action.

The Neemuch Solar Project stands as a beacon of innovation and commitment, showcasing how clean energy can drive economic growth and environmental sustainability.

Disclaimer: The above is a contributor post, the views expressed are those of the contributor and do not represent the stand and views of Outlook Editorial.