World Bank Group IFC has said that Madhya Pradesh has signed project agreements with solar power companies on Monday for Rewa Ultra Mega Solar Park.

“IFC, a member of the World Bank Group, is the lead transaction advisor for this project that will mobilise $550 million in private investment and avoid a million tonnes of GHG (Greenhouse gas) emissions,” IFC said in a statement.

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According to the statement, the project is led by Rewa Ultra Mega Solar Limited (RUMSL), a joint venture between the Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja Vikas Nigam Limited (MPUVN).

The first year tariff for the project had dropped to an all-time low of Rs.2.97 per unit under a competitive bidding.

The Rewa solar park transaction will have an enormous ripple effect, helping create new markets for large solar projects across India and the region, Philippe Le Houerou, IFC Executive Vice President and CEO, said in the statement.

We have partnered with state and national government agencies for years to develop the solar market in India – from rooftops to mega solar parks-and the agreements signed on Monday are the next step in IFCs efforts to help India be a global leader in renewable energy and secure a clean, sustainable future.

The 750 MW capacity project was auctioned in three packages of 250 MW each, and will be one of the biggest single site solar project in the world. The three winning bidders for the project are Mahindra Renewables, ACME Solar, and Solenergie Power, it said.

The winning bidders signed two sets of power purchase agreements with the Madhya Pradesh Power Management Corporation Ltd (MPPMCL) and the Delhi Metro Rail Corporation. About 24 per cent of energy from the park is being sold to the Delhi Metro which will meet about 80 per cent of its daytime energy requirement.

The Rewa solar project will also receive financing from the World Bank, which is helping India deliver on its solar ambitions with more than $1 billion in lending over FY2017, as well as supporting the India-led International Solar Alliance, which aims to promote solar use globally by mobilising $1 trillion in investments by 2030.