An Indian state has signed an agreement for a solar power project, with a record low tariff.
According to IFC, a member of the World Bank Group, which is the lead transaction advisor for the project, a tariff of 4.4 cents/kWh was offered through a bidding process.
It states the 750MW project achieved the lowest tariffs ever awarded for a solar project in India, bringing it on par with fossil fuels for the first time.
The Indian State Government of Madhya Pradesh signed a deal with Rewa Ultra Mega Solar Limited (RUMSL), a joint venture between the Solar Energy Corporate of India (SECI) and Madhya Pradesh Urja Vikas Nigam Limited (MPUVN).
The Rewa Ultra Mega Solar Park will supply power to the Delhi Metro Rail Coroporation and Madhya Pradesh Power Management Company.
IFC expects the project to mobilise $550 million (£429m) in private investment and avoid a million tons of greenhouse gas emissions.
Manu Srivastava, Chairman, RUMSL and Principal Secretary of New and Renewable Energy Department of the Government of Madhya Pradesh said: “This is the first time that solar power has achieved grid parity in our country, which means that the ambitious renewable energy targets set by the Government of India are within reach. This is truly revolutionary. IFC played a critical role in this record setting project.”
The government aims to add 100GW of solar capacity by 2022.