Solar Thermal Project, Mathania, Rajasthan

Serious Megawatts

India Building Large-Scale Solar Thermal Capacity

By Gordon Feller
October 2, 2002
Rajastan, India

Parabolic Trough Array
Brighton, Colorado, USA
photo: US D.O.E.

Editor's Note: Just as on a small scale, hybrid engines stretch a
gallon of gas, in the same manner a hybrid power plant can stretch its
own supply of fossil fuel. In India, a huge new power station using
hybrid systems is close to completing their financing and breaking
ground in the sunny state of Rajasthan. This fossil fuel / solar
hybrid will produce a whopping 140 megawatts of electric power, and 40
of those megawatts will be produced from a field of solar thermal
parabolic troughs. Not as glamorous as photovoltaics, but still much
more cost-effective, parabolic systems use mirrors to focus sunlight
that in turn heats a thermal media (gas, steam) to drive a turbine
generator. The project described below is projected to go in at about
US $1 million per megawatt, which is competitive with conventional
fuels. Read on...

India's power sector has a total installed capacity of approximately
102,000 MW of which 60% is coal-based, 25% hydro, and the balance gas
and nuclear-based. Power shortages are estimated at about 11% of total
energy and 15% of peak capacity requirements and are likely to
increase in the coming years. In the next 10 years, another 10,000 MW
of capacity is required. The bulk of capacity additions involve coal
thermal stations supplemented by hydroelectric plant development.
Coal-based power involve environmental concerns relating to emissions
of suspended particulate matter (SPM), sulfur dioxide (SO2), nitrous
oxide, carbon dioxide, methane and other gases. On the other hand,
large hydroplants can lead to soil degradation and erosion, loss of
forests, wildlife habitat and species diversity and most importantly,
the displacement of people. To promote environmentally sound energy
investments as well as help mitigate the acute shortfall in power
supply, the Government of India is promoting the accelerated
development of the country's renewable energy resources and has made
it a priority thrust area under India's National Environmental Action
Plan (NEAP).

The Indian government estimates that a potential of 50,000 MW of power
capacity can be harnessed from new and renewable energy sources but
due to relatively high development cost experienced in the past these
were not tapped as aggressively as conventional sources. Nevertheless,
development of alternate energy has been part of India's strategy for
expanding energy supply and meeting decentralized energy needs of the
rural sector. The program, considered one of the largest among
developing countries, is administered through India's Ministry of
Non-Conventional Energy Sources (MNES), energy development agencies in
the various States, and the Indian Renewable Energy Development Agency
Limited (IREDA).

Parabolic Dish Array
Rajasthan, India
photo: UNESCO
Throughout the 1990's, India's private sector interest in renewable
energy increased due to several factors: (i) India opened the power
sector to private sector participation in 1991; (ii) tax incentives
are now offered to developers of renewable energy systems; (iii) there
has been a heightened awareness of the environmental benefits of
renewable energy relative to conventional forms and of the
short-gestation period for developing alternate energy schemes.
Recognizing the opportunities afforded by private sector
participation, the Indian Government revised its priorities in July
1993 by giving greater emphasis on promoting renewable energy
technologies for power generation. To date, over 1,500 MW of windfarm
capacity has been commissioned and about 1,423 MW capacity of small
hydro installed. The sector's contribution to energy supply has grown
from 0.4% of India's power capacity in 1995 to 3.4% by 2001.

India is located in the equatorial sun belt of the earth, thereby
receiving abundant radiant energy from the sun. The India
Meteorological Department maintains a nationwide network of radiation
stations which measure solar radiation and also the daily duration of
sunshine. In most parts of India, clear sunny weather is experienced
250 to 300 days a year. The annual global radiation varies from 1600
to 2200 kWh/sq.m. which is comparable with radiation received in the
tropical and sub-tropical regions. The equivalent energy potential is
about 6,000 million GWh of energy per year. The highest annual global
radiation is received in Rajasthan and northern Gujarat. In Rajasthan,
large areas of land are barren and sparsely populated, making these
areas suitable as locations for large central power stations based on
solar energy.

The main objectives of the project are these: (i) To demonstrate the
operational viability of parabolic trough solar thermal power
generation in India; (ii) support solar power technology development
to help lead to a reduction in production cost; and (iii) help reduce
greenhouse gas (GHG) global emissions in the longer term.
Specifically, operational viability will be demonstrated through
operation of a solar thermal plant with commercial power sales and
delivery arrangements with the grid. Technology development would be
supported through technical assistance and training. The project would
be pursued under The World Bank's Global Environment Fund (GEF) --
which has a leading program objective focused on climate change. This
project is envisaged as the first step of a long term program for
promoting solar thermal power in India that would lead to a phased
deployment of similar systems in the country and possibly in other
developing nations.

India supports development of both solar thermal and solar
photovoltaics (PV) power generation. To demonstrate and commercialize
solar thermal technology in India, MNES is promoting megawatt scale
projects such as the proposed 35MW solar thermal plant in Rajasthan
and is encouraging private sector projects by providing financial
assistance from the Ministry.

One of the prime objectives of the demonstration project is to ensure
capacity build-up through 'hands on' experience in the design,
operation and management of such projects under actual field
conditions. Involvement in the project of various players in the
energy sector, such as local industries, the private construction and
operations contractors, Rajasthan State Power Corporation Limited
(RSPCL), Rajasthan State Electricity Board (RSEB), Rajasthan Energy
Development Agency (REDA), Central Electricity Authority (CEA), MNES
and others, will help to increase the capacity and capability of local
technical expertise and further sustain the development of solar power
in India in the longer term.

The project's sustainability will depend on to what extent the impact
of the initial investment cost is mitigated, operating costs fully
recovered, professional management introduced, and infrastructure and
equipment support for operation and maintenance made accessible.
Accordingly, while the solar thermal station will be state-owned, it
will be operated during the initial five years under a management
contract with the private sector; subsidy support will be limited to
capital costs. Fuel input, power supply and other transactions would
be on a commercial basis and backed up by acceptable marketable
contracts. Staff selection and management would be based on business
practices; the project site would be situated where basic
infrastructure is well developed and engineering industries
established.

Parabolic Trough Array
Tehachapi, California, USA
photo: US D.O.E.
This project is consistent with the World Bank's Global Environment
Fund's operational strategy on climate change in support of long-term
mitigation measures. In particular, the project will help reduce the
costs of proven parabolic trough solar technology so as to enhance its
commercial viability. This initiative is part of an anticipated
multi-country solar thermal promotion program, the objectives of which
will be to accelerate the process of cost reduction and demonstrate
the technology in a wider range of climate and market conditions.

Demonstrating the solar plant's operational viability under Indian
conditions is expected to result in follow-up investments by the
private sector both in the manufacture of the solar field components
and in larger solar stations within India.

Insights into local design and operating factors such as
meteorological and grid conditions, and use of available back-up
fuels, are expected to lead to its replicability under Indian
conditions, opening up avenues for larger deployment of solar power
plants in India and other countries with limited access to cheap
competing fuels. Creation of demand for large scale production of
solar facilities will in turn lead to reductions in costs of equipment
supply and operation. It is also expected to revive and sustain the
interest of the international business and scientific community in
improving systems designs and operations of solar thermal plants.

The Project is expected to result in avoided annual emissions of
714,400 tons of CO2, or 17.9 million tons over the life of the
project, relative to generation from a similar-sized coal-fired power
station. The cost of carbon avoidance is estimated at $6.5 per ton.

The project involves: (i) Construction of a solar thermal/fossil-fuel
hybrid power plant of about 140MW incorporating a parabolic trough
solar thermal field of 35 MW to 40 MW; and (ii) Technical assistance
package to support technology development and commercialization
requirements.

Location of Rajasthan
Investment Component. The solar thermal/hybrid power station will
comprise: (i) a solar field with a collection area of 219,000 square
meters to support a 35MWe to 40MWe solar thermal plant; and (ii) a
power block based on mature fossil fuel technology (i.e, regasified
LNG). The proposed project will be sited at Mathania, near Jodhpur,
Rajasthan in an arid region. In addition to high solar insulation
levels (5.8 kWh/m2 daily average), the proposed site involves
approximately 800,000 square meters of relatively level land with
access to water resources and electric transmission facilities. The
solar thermal/hybrid station will operate as a base load plant with an
expected plant load factor of 80%. The final choice of the
fossil-fired power block would be left to the bidders, subject to
performance parameters set out in the tender specifications.

The design choice is an Integrated Solar Combined Cycle (ISCC)
involving the integrated operation of the parabolic trough solar plant
with a combined cycle gas turbine using naphtha. Such a plant would
consist of the solar field; a combined cycle power block involving two
gas turbines each connected to a heat recovery steam generator (HRSG)
and a steam turbine connected to both HRSG; and ancillary facilities
and plant services such as fire protection, regasified liquefied
natural gas supply and storage system, grid interconnection system,
water supply and treatment systems, etc. A control building will house
a central microprocessor control system that monitors and controls
plant operations.

The success of the solar thermal/hybrid power plant as a demonstration
project will determine if this technology is replicable in other parts
of India. The project will provide technical assistance to ensure that
adequate institutional and logistical support for the technology is
available for future expansion of solar thermal power.

Specifically, funds will be made available for promoting
commercialization of solar thermal technologies among potential
investors; staff training and development of a local consultancy base;
upgrading of test facilities; mproved collection and measurement of
solar insolation data and other solar resource mapping activities; and
development of pipeline investments.

The total cost of the investment component is estimated at US$ 201.5
million, including interest during construction, physical and price
contingencies as well as duties and taxes. Of these costs, the cost of
supplies (excluding contingencies) for the solar component including
the steam generator amounts to $41 million, and that for the
conventional power plant component is $72 million. The cost of the
technical assistance component for promoting replication of the solar
power technology is estimated at $4 million.

City Palace of Jaipur
Rajasthan, India

Investors Note: For more information on the solar thermal project in
Rajasthan, India, please contact:

Mr. G. L. Somani, General Manager
Rajasthan State Power Corporation Ltd.
E-166, Yudhisthar Marg, C-Scheme, Jaipur, India
Telephone No.: (91-141) 384055
Fax No.: (91-141) 382759

About the Author: Gordon Feller is the CEO of Urban Age Institute
(www.UrbanAge.org). During the past twenty years he has authored more
than 500 magazine articles, journal articles or newspaper articles on
the profound changes underway in politics, economics, and ecology -
with a special emphasis on sustainable development. Gordon is the
editor of Urban Age Magazine, a unique quarterly which serves as a
global resource and which was founded in 1990. He can be reached at
GordonFeller@UrbanAge.org and he is available for speaking to your
organization about the issues raised in this and his other numerous
articles published in EcoWorld.