Morena ‘Solar-plus-Storage’ Project Gives New Direction to Green Energy and Storage : CM Dr. Yadav

Bhopal, Sept 2025 : Chief Minister Dr. Mohan Yadav has said that under the leadership of Prime Minister Shri Narendra Modi, India is scaling new heights in the field of clean and affordable energy. The Solar Plus Storage Project of Morena is dedicated to the nation during the ‘Seva Pakhwada’ campaign.” He said that the Morena Solar-plus-Storage project will open a new horizon for renewable energy generation and storage across the country. The Chief Minister expressed his commitment to initiate long-term energy storage projects based on the success achieved in Morena. He emphasized that the record low tariff rate achieved in the project proves that renewable energy can also be more economical for DISCOMs.

Madhya Pradesh has recorded a historic achievement in the renewable energy sector with the recent tender results. In the state’s first ‘Solar-plus-Storage’ project being developed in Morena, a record-low tariff of ₹2.70 per unit has been achieved. This is the first project in India where firm and dispatchable renewable energy (FDRE) will be available at a cost of less than ₹3 per unit. With 95% annual availability, the project has set a new benchmark, whereas previous projects across the country could ensure only about 50% peak-hour availability and 85% annual availability. The Morena project is changing this trend by ensuring 95% supply during peak hours.

Project Structure and Capacity

The Morena Solar Park is being implemented by Rewa Ultra Mega Solar Limited (RUMSL), which has previously developed prestigious renewable energy projects. 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.

• Phase 1: Real-time solar energy (up to 220 MW)
• Phase 2: 2 hours during evening peak (from stored solar power in batteries)
• Phase 3: 2 hours during morning peak (from grid-charged batteries at night)

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 combines two projects: 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 utilization 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.

Global-Scale Competition

The e-reverse auction held on September 19, 2025, concluded with a historic tariff of ₹2.70 per unit for 25 years after nearly 12 hours of bidding. This marks a milestone for FDRE tenders in India. Sixteen national and international companies participated, almost 10 times the oversubscription of the offered capacity. Participants included Adani Renewables, NTPC Renewables, ReNew Solar, ACME, Engie Energy, Dilip Buildcon, and MB Power.

• Unit-1 was awarded to Ceigall India Ltd at ₹2.70 per unit.
• Unit-2 went to Acme Solar Holding Ltd at ₹2.764 per unit.

The results clearly show that dispatchable renewable energy (solar with battery storage) has become more cost-effective than coal-based power.

A Reliable Model for Investors

The project is being developed by RUMSL, which has successfully executed projects like Rewa and Agar. Prepared with the support of the International Finance Corporation (IFC) as Transaction Advisor, the project demonstrates the benefits of risk-free, bankable contracts, land aggregation, active transmission planning, financing readiness, and developer-friendly, transparent tendering.

As the park developer, RUMSL will provide land and internal power evacuation infrastructure, while MP Transco is responsible for external transmission facilities. The project incorporates a strong three-tier payment security mechanism, comprising state guarantees, assured procurement of surplus energy, termination compensation, and grid unavailability compensation, ensuring high investor confidence.

Boost to Chambal Region’s Growth

Minister of State for New and Renewable Energy Shri Rakesh Shukla described the Morena project as a catalyst for the economic and social development of the Chambal region. It will create direct and indirect employment opportunities and promote industrial growth in the area, he added.

A Milestone in India’s Energy Transition

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. This project will not only ensure energy security, affordable tariffs, and environmental sustainability for Madhya Pradesh but also for the entire nation. Renewable energy has now become technically and commercially competitive with conventional power.