.
Indian CSP Market potential NSM
phase II and
Lessons of Phase I
Great potential, achievements and many
challenges
16th – 18th April, 2013 at ASTURIAS in Spain
By
GOPAL SOMANI
91 8800988399
Email : gopallalsomani@gamil.com
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Indian National Solar Mission
The
MNRE’s
presentation
on
introduction of JNNSM Phase II
program including reverse auction
process followed for award of solar
projects at cost competitive prices is
relevant
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Achievements of Phase I - CSP
 Huge cost reduction both in supply of solar
field and LEC - Tariff. Solar fields costs from $
4/ watt to $2 / watt and Solar Energy cost
from Rs. 15 65 to Rs. 10 57
 Localization of 45 % in Parabolic trough and
65% in CLFR AREVA technology achieved.
 EPC turn key suppliers are now available.
 The BOS and electrical items are resourced
locally
 Experience and expertise gaining momentum
 The first CSP plant of 50 MW from Godavari is
getting ready for grid connection.
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Summary of Lessons of Phase I
 India had no real CSP projects even at pilot scale

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on ground to check performance when Phase I CSP
program was announced
Reliable DNI site specific data were absent when
bidding under NSM phase I happened
No CSP experience was available in India to build
commercial projects of 50-100 MW capacity when
developers made bids.
Lack of awareness about severe variability in
weather and low DNI at CSP sites mislead to
developers.
Sourcing components locally has been difficult.
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Lessons - Low DNI -weather
conditions
• Huge gap in NREL supplied data from MNRE / C wet
DNI reports and assessment made by Phase I
developers. DNI NREL 2150 / 2260 dropped to 1850 /
1950 KWH / M2
• Developers spent extra time and money in re
engineering solar field layouts and equipments to
compensate lower DNI values.
• Low DNI required 25-30% extra solar field and
additional cost to meet generation commitment
made in PPA
• There are no standards prescribed world over about
specifications, engineering, construction, testing
and commissioning of CSP technologies.
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Lessons – Selection of Land,
Technology and Financial close
• Land selection and allocation, PPA, approvals,
infrastructure placements and land development
all took longer than expected.
• Issues in technology selection, contracting and
timely supply commitments for items like Mirrors,
Receiver Tubes, HTF
• Sourcing experienced construction manpower was
difficult
• Lenders took time in project appraisals and
financial close delayed, key issues:
• Reliability of solar DNI data,
• understanding technology and concept,
• accurate energy yield estimation
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Fact sheet - CSP phase I development
LOW DNI
• DNI at CSP sites in Rajasthan by C wet / MNRE 1702 Kwh / m2 (Source- MNRE)
• DNI at Rajasthan Solar Park - 1676 Kwh / m2
(Rajasthan CSP tender)
• Experts feel that the DNI level at Rajasthan sites
must be higher than the one specified in
Rajasthan CSP tender and MNRE report.
• DNI assessment carried by phase I developers
stands in the range of 1800 -1950 kwh/m2.
• High dust, moisture, fog, high temperature and
wind loads are responsible for low DNI
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Fact sheet - CSP phase I development
• Indian CSP sites have low DNI
compared to sites
in US: 2560 - 2700 KWH/m2, Spain: 2070 - 2360
KWH/m2, SA: 2400 – 2800 Kwh / m2, MENA region
where CSP plants are operational / built
• The weather conditions i.e. Temperature, Dust,
AOD, Moisture, Wind loads, fog etc. has large
variability compared to CSP sites in US, Spain and
SA.
• Low DNI, large variation in weather conditions, high
AOD in Indian CSP sites required large size solar
field involving higher cost of solar block, high
auxiliary consumption compared to operational CSP
plants world over.
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Fact Sheet – CSP Feasibility
• High
technology costs, bankability issues,
affordability of rate payers, falling PV costs
and limited experience in technology are the
issues developers may stay away
making
investment decision in Phase II CSP program.
• The prescribed time frame for completion has
been insufficient for a new technology brought
in for the first time. CSP tender in Rajasthan
resulted to no bid. Reasons are known.
• Phase I projects are delayed by 6 to 12
months and may be more.
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CSP – Historical facts
 Low
DNI in CSP potential sites, severe
variability in weather, high dust, long period
cloud travel have great influence on
operational performance. compared to CSP
sites in US and Spain.
 All operational 50 MW (+) CSP plants across
the globe based on Parabolic Trough
Technology allowed fossil fuel (NG) backup
to the extent of 15-30 % for sustained
operations.
 Consistent operation of Power Block is a
issue during cloud cover, high dust storms
and monsoon without fossil back up and
storage.
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CSP – Specific to Indian scenario
The CUF i.e. outputs, land use, solar field layout
needs careful design depending on DNI conditions
specific to Indian sites.
• CSP is losing its popularity and proportionate
share internationally against falling PV costs. The
cost and affordability are the key drivers.
• The CSP technology is complex and needs precise
engineering, reliable DNI data, expert supervision
in installations. Unfortunately these aspect lacked
and all NSM Phase I CSP projects though
progressing got delayed. Developers requested
for extension grant in completion time for
minimum 12 months.
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History – CSP Technology
• Parabolic
Trough technology is mature, time
tested and most advanced till recently as large
capacity CSP plants are operational since 1986.
• Plants on Tower and CLFR Technology were built
at demonstration / commercial scale in recent
past. 24x7 operations got demonstrated with
Tower Technology. GEMASOLAR 19.7 MW CSP
plant using 15 hours of solar thermal storage
brought in service in 2011 in Spain.
• R&D
on achieving higher steam parameters,
adding storage, scaling higher capacity, cost
reduction etc. are aggressively carried out by
technology suppliers, research institutions and
government agencies
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NSM Phase I – Bidding Process
 Developers made bid aggressively without reliable
data, weather conditions, site selection and
technology studies.
 However, the cost competitive bidding process
followed by Indian Government and award of 480
MW CSP projects under NSM phase I has shifted
the FIT trend globally. Process discovered real
CSP costs.
 Cost competitive bidding / auction process will
result now affordable cost to rate payers.
 Realization of Phase I CSP projects will set future
trends. Indian CSP communities will lead new
emerging CSP market at affordable cost.
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CSP - Merits and Advantages
Challenges
• Deployment of CSP technology in the stand
alone format does not make sense against
falling PV costs, its low gestation and modular
in implementation.
• Low DNI compared to US, Spain, MENA, SA etc.
uncertainties in operations, investment risks to
developers and bankability issues with lenders
are challenges for CSP at the moment.
However,
• CSP will have preference over PV and wind
because of its technical ability to be attached
with Solar Thermal Storage, fossil back up and
hybrid.
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CSP Technology-Merits / Advantages
• CSP plants can generate electricity according
to the demand and thus could replace
conventional power plants in long run.
• CSP capable to achieve 24x7 operations
through large thermal storage and hybrid with
gas / biomass.
• The only route for CSP to stay with aggressive
cost cuts on all fronts
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Suggestions- Phase I and Phase II
• Allow extension in PPA and completion time to all
•
•
•
•
•
Phase I projects by 12 – 18 months
For future large CSP project a minimum time of
36 Months in completion should be allowed.
Do not
wait for the results of Phase I as
important lessons from Phase I already known
and projects are progressing. Bring in CSP hybrid
program early.
Supply reliable DNI site specific data. Evaluate
more sites having feasible and reliable DNI
predictions (+) 1900 kwh/m2
Allow use of 15% fossil backup for operation
stability even to phase I projects
Allow use of PV to supply to offset self auxiliary
consumption and parasitic losses.
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Suggestions- contd.
 Multiple CSP projects are suggested to be
built at the identified DNI potential same site
in a solar park.
 The solar alone plants would be significantly
more expensive and less efficient.
 DNI vary widely by location. Performance
adjustment factor shall be required for DNI at
different sites
 To achieve long term objectives large size
Parabolic Trough and Tower technology plants
with efficient cost effective thermal storage
will have higher CUF and efficiencies.
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Suggestions – contd.
• Regulatory support for minimum 15% fossil back
up and 4 -6 hrs. thermal storage as mandatory –
through independent bench mark tariff for
electricity supply.
• Bankability issues for CSP technologies to be
addressed for early financial close
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Suggestions - NSM Phase II
Local Manufacturing support
• Incentivize heavily to local manufacturing and BOS
supply chain in Phase II.
• Develop large salt storage added to CSP for load
balancing, non solar period operations, reduce start /
stop cycles and meet peak demand.
• Promote hybrid / air cooling to reduce water
consumption.
• CSP mirror, receivers , collectors, salt storage device
should be added to the list of Thrust Areas for
promotion of Solar Manufacturing Capability in phaseII
• Incentives should be included either directly for
establishing manufacturing lines or via VGF in tariff.
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CSP Hybrid concept -24 x7 operation
• Hybrid
- Incentivize power plant hybridization
between solar and fossil such as natural gas, biomass
or coal, to vastly increase CUF through:
• Higher tariff for higher solar portion (otherwise all
project will get ‘stuck’ at the minimum level
required).
• Higher tariff for electricity supplied during peak
demand time
 Hybrid CSP plant has the ability to function as
base load station at all times. The higher solar
share shall effectively reduce the consumption of
fossil fuel and decrease greenhouse gas
emissions.
 CSP hybrid facility shall result in higher capacity
utilization, enhance efficiency, deliver higher
output, reduce fuel consumption and limit the
fuel cost inflation in long run.
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CSP Hybrid concept -24 x7 operation
 CSP technology had matured but concept of hybrid,
higher solar thermal storage and ISCC are still young
and costly. Technology demonstrations have been
carried on solar boost in existing coal power plants,
ISCC, 24x7 operation with (+) 15 hours thermal
storage.
 Both CSP hybridization and CSP thermal storage
options with dry cooling facility will continue to offer a
contrasting range of advantages and disadvantages but as fossil fuel prices go up and PV prices continue
to fall, fossil fuel resource scarcity and environmental
concerns will place an upward pressure on hybrid
system energy prices.
 On maturity of thermal storage options and costs
decreases, a dedicated 100% solar systems will
dominate CSP deployment
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CSP hybrid MARKET POTENTIAL IN INDIA
 MNRE announced a separate program of CSP
hybrid demonstration pilot plants. Following
are the proposed options
 A 50 MW project CSP with hybrid cooling with
object to reduce water consumption
 A 50 MW CSP with steam temperature 500*C
 A 50 MW with (+) 10 hours of solar thermal
salt storage to achieve 24x7 operation
 A 50 MW CSP with 30% Natural gas support
 The options will be site specific in identified
states. DNI, Grid interface and water and low
cost funding will be provided under VGF.
CSP Today Delhi 12 03 2013
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T
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GOPAL LAL SOMANI
Cell No.: 91 8800988699
email- gopallalsomani@gmail.com
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