India’s plans to implement ultra mega solar power projects have received a very major boost following a commitment from the International Finance Corporation (IFC), a member World Bank Group, to the Madhya Pradesh Government in order to develop the world’s largest single site solar project.
The International Finance Corporation (IFC) has signed an agreement with the government of the state of Madhya Pradesh in India to set up a 750 MW solar PV power plant — expected to be among the first ultra mega solar power projects to be commissioned in India and will be the world’s largest single site solar project till date.
The project is supported by the Ministry of New and Renewable Energy, Government of India, under its solar parks development scheme. Madhya Pradesh Urja Vikas Nigam Limited (MPUVN) and the Solar Energy Corporation of India have created a joint venture company — REWA Ultra-Mega Solar Power Limited — to implement the project.
The IFC will extend its global expertise to structure and implement the transaction to help attract private investments of about $750 million. IFC’s work on this project will be supported by its partnership with Australia’s Department of Foreign Trade.
The government of Madhya Pradesh has already approved the project following which the process of land acquisition was initiated. The project is expected to required a total investment of around $500-600 million as per the current capital cost requirements. In 2014, the IFCstated that it was ready to provide debt finance for the project. The Solar Energy Corporation of India (SECI) is expected to float tender for the project soon.
The SECI is working on around 2 dozen ultra mega solar power projects which will have installed capacity of up to 4 GW each.