Madhya Pradesh has created history in the renewable energy sector, with the state’s first ‘Solar-plus-Storage’ project, being developed in Morena, registering the country’s lowest-ever tariff rate of Rs 2.70 per unit.
This is the first project in India where firm and dispatchable renewable energy (FDRE) will be available at a cost of less than Rs 3 per unit.
Moreover, with 95 per cent annual availability of power, the project has set another new benchmark. While previous such projects across the country could ensure only about 50 per cent peak-hour availability and 85 per cent annual availability, the Morena project is changing this trend by ensuring 95 per cent supply during peak hours.
The Morena project combines two systems, including a composite solar project that charges batteries with solar energy, and a ‘Storage-as-a-Service’ project, where excess grid power at night recharges batteries for the morning peak supply.
This mechanism ensures efficient utilisation of surplus night-time electricity from the state grid to meet morning peak-hour demand.
The project sets a benchmark for equal supply during daytime and peak hours, laying the foundation for future projects that can provide a flat power profile across 24 hours.
This will give renewable energy the same reliability as conventional energy, making it technically and commercially equivalent.
The Morena Solar Park is being implemented by Rewa Ultra Mega Solar Limited (RUMSL). The electricity generated will be purchased by the state. Two units are being set up at Morena Solar Park, each delivering 220 MW capacity across three phases.
In Phase 1, real-time solar energy up to 220 MW would be generated. In Phase 2, electricity would be produced for two hours during evening peak time from stored solar power in batteries. Following that, Phase 3 would provide power for two hours during morning peak time from the batteries that would be charged overnight from the grid.
This innovation allows dual use of batteries in a single day, significantly reducing costs. Overall, a 440 MW supply will be ensured during morning and evening peak hours.
The project achieved the record-low tariff rate of Rs 2.70 per unit for a period of 25 years, during the e-reverse auction held on 19 September 2025.
As per officials connected with the project, this marks a milestone for FDRE tenders in India. Officials informed that 16 national and international companies participated, almost 10 times the oversubscription of the offered capacity. Participants included some of the biggest players like Adani Renewables, National Thermal Power Corporation (NTPC) Renewables, ReNew Solar, ACME, Engie Energy, Dilip Buildcon, and MB Power.
Officials informed that ‘Ceigall India Ltd’ bagged Unit – 1 of the project at Rs 2.70 per unit. Similarly, ‘Acme Solar Holding Ltd’ won the tender for Unit – 2, at the rate of Rs 2.764 per unit.
The results clearly show that dispatchable renewable energy, which means solar with battery storage, has become more cost-effective than coal-based power.
Expressing happiness at the significant milestone achieved by Madhya Pradesh in the renewable energy sector, MP Chief Minister Dr Mohan Yadav today said the Morena project marks a turning point in India’s energy transition.
“Such encouraging results are expected to accelerate the shift from coal-based power to renewable energy with storage, strengthening the country’s clean energy future”, Dr Yadav emphasised.
“This project will not only ensure energy security, affordable tariffs, and environmentalt sustainability for Madhya Pradesh but also for the entire nation”, the MP CM asserted. He appreciated that renewable energy has now become technically and commercially competitive with conventional power.