Green bonds fund Indore IMC’s 60 MW solar plant, inaugurated by Mohan Yadav

Madhya Pradesh Chief Minister Mohan Yadav on Wednesday inaugurated the Indore Municipal Corporation’s 60-megawatt solar power plant. Officials said it was the country’s first renewable energy project financed through green bonds. The plant is expected to cut Indore Municipal Corporation’s power costs. It is also projected to lower carbon emissions from municipal operations.

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Officials said Indore Municipal Corporation raised Rs 244 crore through green bonds issued as a public issue. The solar project’s total cost stood at Rs 271.16 crore, officials added. They said it was the first renewable energy unit in India backed by a public participation model. The funding structure aimed to link citizens with clean energy investment.

Indore Municipal Corporation solar power plant green bonds details

The solar power plant is located in Khargone district on 211 acres of mostly barren land. Officials said the site supported a large-scale renewable installation without heavy land-use pressure. They added that the project was designed to support municipal services. It is also expected to set an example for other urban bodies.

Mohan Yadav said the plant would cut carbon emissions and support the environment. Mohan Yadav added that the project would motivate other urban bodies across the country. Officials said the plant would help reduce Indore Municipal Corporation’s electricity bill. The savings were expected to come from replacing costlier grid power.

Indore Municipal Corporation solar power plant electricity savings

According to officials, Indore Municipal Corporation pays about Rs 25 crore each month for electricity. This power is used to bring Narmada river water from Jalud. Jalud is in Khargone district, about 80 kilometres from Indore. Officials said the solar plant would reduce the bill by around Rs 5 crore monthly.

Officials said the plant was expected to generate about 9.60 crore units of electricity each year. They estimated the electricity cost at Rs 3.50 per unit. Officials said grid electricity typically costs between Rs 6 and Rs 9 per unit. The lower rate was expected to support steady water supply operations.

Indore Municipal Corporation solar power plant carbon emissions impact

Officials said the project would prevent 1.46 lakh tons of carbon dioxide emissions annually. They added there would be no direct emissions during plant operation. The project is also expected to earn over Rs 18 crore for Indore Municipal Corporation through carbon credits. Officials linked these gains to cleaner power generation.

With the plant now inaugurated, officials expected Indore Municipal Corporation to see lower monthly electricity payments. The project also tied clean energy output to carbon-credit income. Mohan Yadav said the shift would benefit the environment. Officials maintained the green bond funding model could be used for similar municipal projects.

With inputs from PTI