IFC to provide $440 million loan to developers of Rewa PV project

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Continuing its investment in the Indian solar market, the International Finance Corporation (IFC), will provide $440 million investment to all three of the active solar developers currently building the 750 MW Rewa solar park project in Madhya Pradesh, according to the Livemint.

The IFC will apportion to Actis LLP a loan of $140 million, ACME group will receive $150 million, and the remaining $150 million is waiting approval from the board before pinging off to Mahindra Renewables. Earlier, it was reported that the IFC would invest $50 million in Mahindra Renewables for the same project. The Rewa project is expected to be commissioned in December this year.

The costs for the project were fixed at INR 2.97 ($0.046)/kWh in February 2017, which was lowest in the country at that time. The three units of 250 MW has been awarded to Mahindra Renewables, ACME solar holdings Pvt Ltd and Actis LLP’s Solenergi Power Pvt Ltd respectively.

The bidding authority was Rewa Ultra Mega Power Ltd (RUMPL) – a joint venture between Madhya Pradesh government’s power company, Madhya Pradesh Urja Vikas Nigam Ltd (MPUVNL) and the Solar Energy Corporation of India (SECI).

Shalabh Tandon, India lead for infrastructure and climate business at IFC, said that the disbursed amount is all debt, required for all three projects. Actis has already signed the agreement and the other two loans are under process.

The Rewa project is India’s first project that will conduct an interstate sale of electricity. Around 23% of PV production from the solar park will be sold to the Delhi Metro Rail Corporation Ltd (DMRC). This will meet about 80% of the rail operator’s daytime energy requirement.

The Rewa project was also the first to start the reduction of tariff rates for solar power. Manu Shrivastava, director at MPUVNL, said that it has utilized viability gap funding (VGF) and subsidy to reduce the tariffs.

Investments in India’s solar sector are increasing as India sustains its serious commitment to reach its goal of 175 GW of renewable energy by 2022.