In a significant step towards its goal of achieving net-zero carbon emissions, the Indian Railways has signed a Power Purchase Agreement (PPA) with the Government of Madhya Pradesh for the procurement of the cheapest renewable energy in India. According to the agreement, Indian Railways with receive 400 MW of installed solar energy from Madhya Pradesh’s largest solar park, which will boost the country’s ambitious green energy plans.
Speaking on the occasion, Minister of Railways Ashwini Vaishnaw said, “Indian Railways is marching towards achieving the objective of Net Zero, and this partnership is a crucial milestone in our journey.”
He added that Railways will achieve 100 per cent electrification in the next fiscal year and is making rapid progress in the usage of renewable energy as well.
Madhya Pradesh Chief Minister Mohan Yadav along with state New and Renewable Energy Minister Rakesh Shukla, were also present at the event, where the PPA was signed with Rewa Ultra Mega Solar Power Limited (RUMSL). The deal promises to provide India’s railways with clean energy at the lowest solar tariff in the country – an impressive rate of Rs 2.15 per kWh.
Indian Railways has already made considerable progress in transitioning to renewable energy, having tied up with developers for a total of 4,260 MW of solar and 3,427 MW of wind energy capacity.
RUMSL, a joint venture between the Solar Energy Corporation of India (SECI) and the Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL), will supply 195 MW of solar power to Indian Railways. The total installed capacity of the Rewa solar park stands at 400 MW, with an annual output of 757 million units of solar power. This partnership will help Indian Railways reduce its carbon footprint and energy costs while contributing to India’s renewable energy targets.
By 2030, Indian Railways anticipates a traction power requirement of 10,000 MW. The railway network is working towards meeting these demands through a mix of renewable energy sources and efforts to reduce its dependency on oil imports, which will help lower the overall logistics cost and provide environment-friendly transportation.
The PPA signed on Monday brings the total installed solar energy capacity tied up with Indian Railways to 4,260 MW.
In addition to solar, Indian Railways is also working towards the modal shift from road to rail, ensuring a greener and more efficient transport system for the country.
The agreement includes a 25-year duration, with power to be supplied via the grid to Indian Railways across six states. The project is set to be operational by December.
The Rewa Ultra Mega Solar Park will contribute 2.5 per cent to India’s total solar power generation capacity. The project also set a record for the lowest-ever tariff awarded for a solar Public-Private Partnership (PPP) in India, without government viability gap funding.
This collaboration has earned global recognition, with the project receiving accolades such as being featured in the Prime Minister’s “Book of Innovation” and the World Bank`s President’s Award.
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