Madhya Pradesh secures record low tariff for solar-plus-storage project in Morena

Madhya Pradesh has awarded India’s lowest tariff for a solar-plus-storage project. The Morena Solar Park secured a rate of Rs 2.70 per unit in the e-reverse auction on 19 September 2025.

The project is India’s first firm and dispatchable renewable energy (FDRE) supply at less than Rs 3 per unit. It will provide 95 per cent annual availability, with assured supply during both evening and morning peaks.

Rewa Ultra Mega Solar Limited (RUMSL) is developing two 220 MW units in three phases. Phase 1 will supply 220 MW of solar in real time. Phase 2 will discharge stored solar for two hours in the evening. Phase 3 will release two hours of supply in the morning, with batteries charged overnight from the grid. This dual-use lowers costs and enables 440 MW of peak support.

Sixteen companies bid for the project, nearly ten times the capacity offered. Ceigall India Limited won Unit 1 at Rs 2.70 per unit. Acme Solar Holding Limited secured Unit 2 at Rs 2.764 per unit. Participants included Adani Renewables, National Thermal Power Corporation (NTPC) Renewables, ReNew Solar, ACME, Engie Energy, Dilip Buildcon, and MB Power.

The auction outcome confirms dispatchable renewables with storage are now cheaper than coal-based power. Tariffs are locked for 25 years.

Madhya Pradesh Chief Minister Dr Mohan Yadav called the Morena project a milestone for the state and said it would accelerate the transition to renewables with storage.