Sunday, May 26, 2013: Solar Energy Corporation of India (SECI) is planning to invite proposals for four pilot solar thermal power projects in Gujarat, Rajasthan, Tamil Nadu, and Andhra Pradesh. The projects require an investment of around Rs 2,555 crore. The newly formed company has sanctioned the viability gap funding (VGF) of Rs 1,020 crore and is likely to select the bidders, who will seek the least amount of funding.
SECI is likely to invite international competitive bidding in a year’s time and target a tariff of Rs 5.83 per kWhr that will remain fixed for a 25-years duration.
The new projects will be of different technologies and based on SECI’s directive to boost the development of technology in the selection regions. While Gujarat project will seek to work at higher operating temperatures, the Rajasthan project will experiment with a hybrid cooling system. The remaining two plants will aim at developing technologies for extended hours of heat storage.
Unlike Solar PV, solar thermal focuses sunlight over a point or a channel having a special oil, which makes it hot. This heat is utilized to generate steam that turns the turbines. Solar PV, on the other hand, generates power when sunlight comes in contact with the panels. Solar thermal projects have been facing a tough competition from solar PV projects, as the cost of PV panels has reduced drastically over the past few years.
The Ministry of New and Renewable Energy has awarded seven solar thermal projects of total capacity of 500 MW through a competitive bidding. These projects must have completed by this month, but they are nowhere near completion.
