India’s largest subway system – Delhi Metro Rail Corporation – has signed power purchase agreement with one of the largest solar power projects planned in the country.
According to media reports, the Delhi Metro Rail Corporation (DMRC) has signed agreement to purchase electricity generated from the planned 750 MW solar power park in the state of Madhya Pradesh. Power generated from the Rewa-based solar power park will be transmitted to Delhi, around 800 kilometres away.
The 750 MW solar power park will be one of the biggest in India once fully operational. The project is among the first ultra mega solar power projects approved by the central government under its revised solar power target of 100 GW by March 2022.
The solar power park will be developed in 3 phases of 250 MW capacity each, spread over a total of 1,500 hectares. Power generation from the first phase is expected to start beginning in June 2017, with the entire capacity expected to be fully operational by December 2017.
Delhi Metro has agreed to procure at least 121 million kWh electricity every year from the first phase. Once all the phase are operational, Delhi Metro may increase procurement to 363 million kWh per year.
Earlier this year, the International Finance Corporation (IFC) signed an agreement with the government of the state of Madhya Pradesh in India to provide assistance in the implementation of the solar power park. 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.