Madhya Pradesh signs state guarantee for 750 MW Rewa PV plant

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Madhya Pradesh DISCOMs have signed the state guarantee for procurement of solar power from Rewa Ultra Mega Solar Project, local media The Pioneer has disclosed.

The guarantee assures that in case of any default, all payments on behalf of the state DISCOMs would be incurred by the state government.

The Rewa Ultra Mega Solar Project 750 MW was fixed at the levelized solar tariff of INR 3.30/kWh ($0.0494) /kWh) – which was lowest ever recorded at that time, and later surpassed by Bhadla Solar Park with a winning bid of INR 2.44/kWh in May. The 750 MW PV project is going to be one of the largest solar installations in the world.

Rewa Ultra Mega Solar Limited (RUMSL) is implementing the project in a Joint Venture between MP Urja Vikas Nigam Limited (MPUVN), a company wholly owned by the government of Madhya Pradesh, and the Solar Energy Corporation of India (SECI).

Three power developers – Mahindra Renewables, Acme Solar, and Spring Energy – won the bidding process to develop 250 MW each.

For this project, state utility Madhya Pradesh Power Management Company Ltd (MPPMCL) has introduced the three-tier Payment Security Mechanism for securing payments to developers, which was hailed by MNRE as a model to be replicated in other solar projects as well.

Under this Mechanism, the first two tiers are a Letter of Credit and Payment Security Fund. The third tier is a guarantee from the state government, which has recently been signed.

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