India’s commitment under the Paris Agreement targets to reduce greenhouse gas emission intensity of its GDP by 33-35% below 2005 levels alongside mainstreaming renewable energy (RE) sources to about 40% of India’s power capacity by 2030. By 2030, India has set a target of 450 GW. Availability of contiguous land and right-of-way challenges in developing power transmission lines are key concerns that could slow down growth in India. Floating solar could become a key alternative to meet the 100 GW target with India having 18,000 sq km of water surface area that has the potential to generate 280 GW.

The project aims to increase renewable energy use in the power supply mix in Madhya Pradesh and reduce carbon emissions by about 1.20 million tons per annum by replacing some existing thermal generations. The project will also create a bankable structure for the implementation of such large utility-scale floating solar projects which will foster the development of similar projects in the country.

GGGI’s support as independent Technical and Financial advisors to the project, has played a key catalytic role in enhancing the bankability of the project.

The project aims to increase renewable energy use in the power supply mix in Madhya Pradesh and reduce carbon emissions by about 1.20 million tons per annum by replacing some existing thermal generation. The project will also create a bankable structure for the implementation of such large utility-scale floating solar projects, which will foster the development of similar projects in the country.

Madhya Pradesh has about 56.8 km of surface water and given the increasing cost of land, floating solar makes a great option for non-renewable energy sources and is a focus area for the state. This translates to a potential of 20 GW. The 600 MW Floating Solar Project is one of the first steps towards harnessing this potential.

The key challenges faced by Madhya Pradesh Power Sector which the project aimed to address:

Diversification of the power supply mix, to meet the future demand of the state in an environmentally sustainable manner.

Reduction in the CO2 emissions of the state, power is one of the largest contributors to emissions in the state. The project will mitigate more than 1.2 million tons of CO2 emissions aligned Government of India’s target to reduce the emission intensity of GDP by 33-35% by 2030 by 2005 levels.

High power purchase cost for the state, leading to high-end retail tariffs and the need for efficient use of available natural resources in an economical and sustainable manner through enhanced private sector participation to bring down tariffs. The project will therefore deploy a robust transaction and technical design to enhance project bankability, to promote greater private sector participation to offset higher development costs, and bring down end-use tariffs.

The project contributed to the successful PPA agreement for Phase-1, 278 MW of the project, and Phase-2 for the remaining 322 MW has also been initiated. The project is currently under construction at the Omakreshwar Dam in Madhya Pradesh.

The project shall be able to meet the power needs of approximately 550,000 homes in Madhya Pradesh, translating to approximately ~2,645,500 beneficiaries.