Context: Recently, the Prime Minister has inaugurated the 750 MW (Mega Watt) solar project set up in Rewa, Madhya Pradesh. It is in line with India's commitment to attain the target of 175 GW of installed renewable energy capacity by 2022 including 100 GW of solar installed capacity.
Objectives & Significance

• The solar plant will provide electricity to the industries in Rewa and also to the metro rail in Delhi. This is the first solar project in the country to break the “grid parity barrier”.
• It is a cheap & clean energy source which will help poor, middle-class families, tribals and farmers of the state.
• It is expected to reduce carbon emission equivalent to around 15 lakh tons of CO2 per year.
• It exemplifies the commitment of the nation to achieve the 175 GW target of installed renewable energy capacity by 2022. This includes 100 GW of solar installed capacity.
• It has been acknowledged for its robust project structuring and innovations.

Key facts

• Developed by- The solar project was developed by Rewa Ultra Mega Solar Limited (RUMSL). The company is a joint venture of Solar Energy Corporation of India and Madhya Pradesh Urja Vikas Nigam Limited MPUVN).
• It consists of three solar generating units of 250 MW each located on a 500-hectare plot of land situated inside a Solar Park having a total area of 1500 hectare. It is one of the largest single-site solar plants in the world. 
• The Rewa Solar Power project has received the World Bank Group President’s Award for innovation and excellence and was included in the book ‘A Book of Innovation: New Beginnings’.
• 24% of energy from the project will be supplied to Delhi Metro and the remaining 76% will be supplied to the State DISCOMs of Madhya Pradesh.

India and  Solar Energy

• As per the World Energy Outlook Report 2015, India has the substantial solar potential of around 750 GW. 
• It is strongest in the north and northwest of the country (Rajasthan, Jammu and Kashmir), but the potential is also considerably high in several other states, including Maharashtra, Madhya Pradesh, and Andhra Pradesh.
• India’s Intended Nationally Determined Contributions (INDC’s) commitment includes 100 GW of solar power out of 175 GW renewable energy by 2022.

The 100GW solar energy comprises of:

• 60 GW of utility-scale projects (both solar PV and CSP) like solar parks
• 40 GW of rooftop solar applications for commercial users and households, together with some small-scale schemes and off-grid capacity. 
• Some important initiatives of the government for solar energy are National Solar Mission, Sustainable rooftop implementation of Solar Transfiguration of India (SRISTI) scheme, Suryamitra programme, National green energy programme and green energy corridor etc. 
• The establishment of the International Solar Alliance (ISA) of more than 122 countries initiated by India, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn to promote solar energy.

What is Grid parity?

• It is the situation when an alternative energy source can generate power at a cost of electricity that is less than or equal to the price of power from the electricity grid.
• Grid parity is the point when the cost of the alternative energy becomes equal to or less than electricity from conventional energy forms like fossil fuels. 
• It’s one of the most important things energy analysts look at when determining how economically viable an alternative energy form is for widespread development and adoption.

Central Grid: Central grid is an interconnected system of local and regional grids to provide continuous supply of electricity in the whole country. It is one seamless network for delivering power to consumers.
Merits:-

• It provides relief to power deficit regions.
• It will also improve transmission and facilitate better management of demand, ensuring the stability of the electricity grid.
• Easier availability of power could also lead to lower tariffs

Demerits:-

• The reliability of the central grid cannot be assured.
• Despite central grid, problems of load shedding and power outages are still common with some parts of India having access to power for less than eight hours a day.
• Distribution: the link between power generation plants and the end users is a complex challenge that India’s power sector is tackling with.