MP’s Neemuch Solar Project sets new benchmark; achieves record-low tariff of Rs 2.15 per unit

The Neemuch Solar Project in Madhya Pradesh has set a new benchmark in India's renewable energy sector by achieving a record-low tariff of Rs 2.15 per unit, marking a significant step towards sustainable energy and in line with India's commitment to reducing carbon emissions.

The project is part of India's broader 'Panchamrit' strategy, which was outlined during the COP 24 summit. This strategy underscores the nation's determination to combat climate change and transition to cleaner energy sources.

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

Chief Minister of Madhya Pradesh Mohan Yadav said, “Solar energy is at the heart of our economy today, reducing energy costs for industries and making life easier for farmers with affordable power.”

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

Rewa Ultra Mega Solar (RUMSL) approach to optimise 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, made the project highly attractive to investors

Chief Minister Yadav 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. 

Madhya Pradesh: Leader in Renewable Energy

Madhya Pradesh has achieved significant progress in renewable energy, increasing its capacity over 14 times in the past 12 years to nearly 7,000 MW. This now accounts for 21 per cent of the state's total energy capacity.

The state has led solar innovations, beginning with the Rewa Solar Project, which provided electricity at rates lower than coal-based power. This project also supplies power to the Delhi Metro, highlighting its national importance. Following this success, the Agar-Shajapur-Neemuch projects now provide electricity to Indian Railways and seven other states, including Maharashtra, Gujarat, and Uttar Pradesh.

In October 2024, Madhya Pradesh launched the 278 MW Omkareshwar Floating Solar Project, the largest floating solar installation globally, reinforcing its status as a pioneer in renewable energy.