Indian Railways and MP Government signs 170 MW PPA to procure solar power energy
The Government of Madhya Pradesh, through Rewa Ultra Mega Solar Power Limited (RUMSL), is supplying solar power to Indian Railways from its largest solar park.
Indian Railways and MP Government signs 170 MW PPA to procure solar power energy
A significant 170 MW Power Purchase Agreement (PPA) was signed between the Indian Railway and the Madhya Pradesh government. Indian Railways has already tied up 1,500 MW of renewable energy.
This milestone marks the procurement of India's cheapest solar power at Rs 2.15/kWh, and the minister reaffirmed enthusiasm for exploring wind and nuclear energy procurement.
The Government of Madhya Pradesh, through Rewa Ultra Mega Solar Power Limited (RUMSL), is supplying solar power to Indian Railways from its largest solar park. Union Railway Minister emphasized the Indian government’s goal to achieve ‘Net Zero’ carbon emissions for Indian Railways, with 100% electrification slated for completion in the 2025-26 financial year.
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The next objective is to maximize renewable energy procurement. In addition to setting up its solar systems, Indian Railways is also securing solar power through PPA arrangements with developers.
By 2030, Indian Railways' traction power requirement is projected to reach 10,000 MW. So far, it has secured 4,260 MW of installed solar capacity and 3,427 MW of installed wind capacity to meet its energy needs, the Minister said.
RUMSL, designated as a Solar Power Park Developer (SPPD) by the Ministry of New and Renewable Energy (MNRE), was entrusted with developing large-scale solar parks in Madhya Pradesh under the Ultra Mega Renewable Energy Power Projects (UMREPP) scheme of the Government of India.
To ensure efficiency and expertise in executing and operating such large-scale projects, RUMSL adopted the DBFOO (Design, Build, Finance, Own, and Operate) model. The initiative significantly contributed to India’s renewable energy sector, increasing the country’s solar power generation capacity by 2.50%.
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