Madhya Pradesh has achieved a record low tariff for solar power backed by battery storage, setting a new benchmark for renewable energy in India. The state finalized bids for its first large-scale solar-plus-storage project in Morena, where two developers secured rates below three rupees per kilowatt-hour.
According to state officials, Ceigall India Ltd won one unit at 2.70 rupees per kWh, while ACME Solar secured the second unit at 2.764 rupees per kWh. Both units will deliver 220 megawatts of power each, making up a combined capacity of 600 MW and 880 MWh of dual-cycle storage. This is the first time an Indian renewable energy project with storage has cleared at less than three rupees per unit.
The project is designed to supply consistent power across three daily periods. During the day, the plants will deliver up to 220 MW directly from solar panels. In the evening, when demand peaks, they will release stored energy from the batteries for two hours. In the morning, before solar generation begins, the plants will draw on the same batteries charged with cheaper night-time grid power.
Officials say this setup ensures the same supply during peak hours as during daylight, making renewable power more comparable to coal-based electricity. The project also promises 95 percent annual peak supply availability, a first for India.
The auction was conducted by Rewa Ultra Mega Solar Ltd (RUMSL), a joint venture of the Madhya Pradesh government and central agencies. Sixteen companies submitted bids, oversubscribing the available capacity by nearly ten times. The competitive process lasted 12 hours, ending with Ceigall and ACME as the winners.
State renewable energy head Manu Srivastava said the outcome shows renewable power with storage can be cheaper than coal. He noted that Madhya Pradesh plans to scale up to longer-duration storage projects, with the aim of eventually offering round-the-clock renewable energy at coal-equivalent tariffs.
India is rapidly expanding its renewable energy portfolio. The government has set a target of 500 gigawatts of non-fossil fuel capacity by 2030. While coal still supplies the majority of power, the falling costs of solar and wind, combined with new storage solutions, are beginning to shift the balance.
Industry experts say the Morena auction highlights how carefully structured tenders can drive down prices. Debmalya Sen, president of the India Energy Storage Alliance, said the record tariff reflects changes in the tender design that matched state requirements. He cautioned, however, against direct comparisons with earlier bids that had different conditions, such as longer storage durations.
For Madhya Pradesh, the project represents more than just a low tariff. It demonstrates that renewable energy can be supplied with the same reliability as conventional power plants. By ensuring steady output during high-demand hours, the project could reduce reliance on coal while showing other states a model for affordable clean power.
Power from the Morena project will be procured by MP Power Management Company Ltd. Once operational, it is expected to supply millions of homes and businesses in the state, easing demand pressure and providing a cleaner alternative to fossil fuels.
Support us to keep independent environmental journalism alive in India.
Keep Reading
Small Wild Cats in Big Trouble: India’s First National Report Released
After Tragedy, Families Face Delays in Tiger Attack Compensation
Stay connected with Ground Report for underreported environmental stories.
Follow us onX, Instagram, and Facebook; share your thoughts at greport2018@gmail.com; subscribe to our weekly newsletter for deep dives from the margins; join our WhatsApp community for real-time updates; and catch our video reports on YouTube.
Your support amplifies voices too often overlooked, thank you for being part of the movement.
