10 Mw Solar Thermal Power Project Report

DETAILED PROJECT REPORT 5 MW (2 X 2.5 MW) AMRITSAR SOLAR THERMAL POWER POWER PROJECT

OPTIMISTIC POWER & INFRASTRUCTRE. PROFIT CENTRE 99-A GOAL HATTI CHOWK, HALL BAZAR AMRITSAR-143001 (PUNJAB)

Detailed Project Report 5 MW Amritsa r Solar Thermal power Plant

5 MW (2 x 2.5 MW) AMRITSAR SOLAR THERMAL POWER PROJECT

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

CONTENTS TITLE

PAGE NO.

03-04 PROJECT 1 INTRODUCTIO 05-06 HIGHLIGHTS 2 NEED 07-16REQUIREMENT OF KEY N OF THE PROJECT AND 3 SITE FUEL17-19AND WATER INPUTS FEATURES, 4 TECHNOLGY 20-29 AVAILABILITY 5 PLOT AND 30 GENERAL SELECTIONPLAN 6 ENVIRONMENT 31 ARRANGEMENT 7 MANAGEMENT 32-34 AND EXECUTION OF CONDITIONS 8 PROJECT 35-37 FINANCIAL ASPECTS

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10 MW Amritsar Solar Thermal power Plant

PROJECT HIGHLIGHTS 10 MW (2 x 5 MW) SOLAR BASED THERMAL POWER PROJECT DIST. AMRITSAR, RAJASTHAN 1. Project : 10 MW Solar Thermal Power Plant in Amritsar, Rajasthan 2. Plant Capacity : 10 MW (2 x 5 MW) 3. Location : In Amritsar district, Rajasthan : Nearest National Highway is NH-15. : Nearest Railway station: Amritsar : Nearest Airport is Jaipur. : Nearest Sea Port is Kandla 4. Site Elevation : 250 m above MSL 5. Climate :

Max. Temperature (Daily): 41.7 Deg C Max. Temperature (Monthly): : 33.8 Deg C Min. Temperature (Daily): 5.0 Deg C Min. Temperature( Monthly): 18.4 Deg C Relative Humidity : 54% (Annual Mean) Mean annual Rainfall: 279.8 mm No. of rainy days in a year:18.7 days Mean wind speed : 6.9 kmph Local data for Solar insolation value, air temp, rainfall data Enclosed as annex. I as the nearest met etc.:

station to the project site.

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6. Land Area requirement :

30 Ha

approximately.

7. Source of Water : Indira Gandhi Canal (Kanasar Branch) Located at approximately 6 kms from site location. 8. Water Requirement : 420 cubic meter/ Day 9. Plant Cooling System : Closed Cycle 10. Source of Energy : Solar 11. Process : Concentric Solar Power (C SP) in combination with Rankine cycle. 12. Power Evacuation : Power evacuation through nearest 132 KV substations at Karni. 13. Commissioning

: 18 months from Zero date

Schedule 14. Estimated Project Cost : With IDC & Initial Spares

- 149.60 Crores.

15. Debt – Equity Ratio : 70 : 30 16. Levellised Tariff :

Rs 12.85/kwh

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SECTION-1

1.0 INTRODUCTION

ACME Tele Power Limited

(ATPL) is part of ACME group presently operating

in Telecom sector having a current enterprise value of over Rs 12,000 Crore, while the group’s turnover in 2007-08 was an impressive Rs 1850 Crore with a PAT of Rs 417 Crore. ACME Tele Power Limited

prides itself as a trailblazer

in the development of green technologies which are energy efficient, cost effective and environment friendly. ACME had its inception in year 2003, through the vision of its founder, Sri Manoj Kumar Upadhyay, who dreamt of providing radically new technology solutions across the industry. ATPL has, in the last five years of its existence, launched a slew of innovative, patented, passive infrastructure solutions and has made its mark in TSP services to the telecom industry. The product portfolio includes, Green Shelters, Nano Cool Shelters, Power Interface Units, Filterless ACs with free cooling, Thermal Management Systems, Battery Coolers, Heat Exchangers, hydrogen Fuel Cells and several other products targeted to reduce power consumption at base transmission sites, thus helping operators to improve margins and reduce energy costs. Acme’s solutions predominantly assist in reducing GHG emissions, which contribute to Global warming. ACME’s clientele includes almost all the leading companies in the Indian and global wireless telecommunications industry. The Company already enjoys an international presence through its own establishments, acquisitions, channel partners and associates in more than 20 countries around the world. ACME is continually expanding and diversifying its range of products, solutions and services to offer improved solutions to its customers and continues to invest heavily in R&D, both in India and abroad. In last five years of operation it has shown the wide acceptability of its energy efficient products in demand side in a great way in telecom sector.

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

Now in line with its vision, having access & tie-ups with internationally reputed technology suppliers and in-house R&D facility, ACME group intends to venture into Green energy business and more specifically in the Solar power generation, since it believes that solar energy is the only sustainable form of energy, which can minimize our dependence on imported fuel and will be cost effective with increasing volume.

ATPL either directly or through a SPV company to be formed exclusively for purpose of project implementation and operation, plans to set-up a 10 MW Solar thermal power project in the state of Rajasthan.

2.0 Outline of the Report 2.1 Following salient points shall be covered under the Detailed Project Report. (a)

Justification of project

(b)

Study of topographical survey and other data for locating the project.

(c)

Study of water requirement and finalization of water system.

(d)

Study of power evacuation and connection with the grid.

(e)

Details of technology for solar power.

(f)

Project implementation schedule showing key milestone activities.

(g)

Estimation of the project cost with broad and detailed breakup under major heads.

(h)

Computation of the cost of generation at power station bus.

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10 MW Amritsar Solar Thermal power Plant

SECTION-2

2.0 NEED FOR THE PROJECT AND REQUIREMENT OF KEY INPUTS

•

As on Jun 2008, the installed Utility Generation capacity of our country stands at about 1,45,000 MW and the plan is to almost double this capacity by end of 12

•

Further going beyond 12

th

plan (year 2017).

th

plan, with a targeted GDP growth rate of 7-8%

and with estimated energy elasticity of 0.8, the energy growth rate expected to rise at 5.6 - 6.4 percent per annum. This implies four fold increase in India’s primary energy demand & 5-6 times increase in Electricity Supply by year 2031-32. This means an estimated that power generation capacity to reach at 8 lakh MW by that time period.

•

In order to meet this energy consumption, we have limited domestic conventional resources that is depicted in following table:-

•

The following table shows the limitation either year-wise or the MW potential for all forms of conventional fossil based fuels & present form of

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10 MW Amritsar Solar Thermal power Plant

renewable energy sources as estimated in the Integrated Energy Policy – 2006.

Coal Will exhaust by 2050 at 5% increase in production Lignite Will exhaust by 2045 Oil Will exhaust by 2028 Gas Will exhaust by 2043 Nuclear Uranium Will exhaust by 2057* Hydro 1, 50, 000 MW – max potential Wind 45, 000 MW – max potential Bio Mass 50, 000 MW – max potential

This makes very important to plan and develop feasible technologies to harness alternative energy through other resources other than the options mentioned here-in above.

•

Unless we plan for an alternative source of energy, we will go on increasing our energy import bills, thereby forcing our economy to get controlled in hands of other exporting energy countries. Different supply and different demand side options have been worked out by Planning commission, GoI to meet the future energy requirement. These options included adaptation of different mode of energy efficiency in demand side and also adaptation of new technologies for exploiting the renewable energy in large scale. The outcome of the result reveals the alarmic level of energy dependency, vulnerability of entire country’s economy in the hands of Oil rich countries. The import of energy could be in the range of 30-60 % under different considered scenarios in IEP-2006. The imports for Oil, Natural Gas & Coal could be in the range of 315-450 Mtoe, 0-97 Mtoe, 72-462 Mtoe respectively. To give a better understanding the following table can give the import fuel bill considered at different imported fuel prices.

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10 MW Amritsar Solar Thermal power Plant

Oil Price

Gas Price

Coal Price

Fuel Import

($ /Barrel)

( $/MMBtu)

( $ /T )

Bill (Bn $)

500 80 438 1420 7.7 400 64 350 1136 6.2 300 48 263 852 4.6 135 10 100 72 2.5

•

The key imperatives in energy sector in order to fuel the required growth in Economy have to be essentially derived out of energy sustenance and going together with ecology and environment around us. In order to sustain economy, there has to be a paradigm-shift in energy mix with shifting focus from fossil fuel. The Electricity Act 2003 already stipulates minimum percentage of energy to be derived out of renewable energy sources which shall be binding in all states.

o

In accordance with the above, many of the State Commissions have specified a percentage of the total purchases to be made from nonconventional energy sources. For example, in the northern region the percentage of power purchase from renewable energy sources provided is as under:

State % of power purchase from renewable energy sources as per the prevailing order of SERC Delhi 1% of the purchased energy translating to 223 MUs by the FY 2011. Haryana 10% of the energy consumption by the year 2009-10 translating to approximately 2000 MUs Punjab 4% of the energy consumption by the year 2011-12 translating to approximately 1900 MUs

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Detailed Project Report

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Uttar Pradesh 7.5% of the energy consumption translating to approximately 2900 MUs Rajasthan Minimum of 9.5% of the energy consumption by the year 2011-12 requiring a capacity of 2104 MW. •

The Renewable Purchase Obligation (RPO) for the state of Rajasthan has been kept at 12% maximum and 9.5% as minimum of total energy consumption by Discoms from non-conventional energy sources by year 2011-12 as per RERC’s order of 29

th

Sept 2006. With 22% of CUF for Wind

and 80% for Biomass the Commission has fixed the upper limit of RE sources from Wind & Biomass as 2104 MW mainly for Wind and Biomass by year 2011-12.

•

The maximum potential of the state from the present non-conventional sources viz. wind, biomass & SHP have been estimated as approximately 1100 MW i.e. Wind – 1050 MW, SHP – Nil MW & Biomass – 50-100 MW.

o

The commission had fixed the target of 1082 MW of Power plant based on RE sources by the end of 2007-08 against an installed capacity of 543 MW (almost 50%) as on 30

th

Apr 2008 as per CEA. This means energy

equivalent to 500-550 MW need to be derived out of other non conventional energy sources in next 3 years time period as per Commission’s order.

•

It is therefore clear that there is a huge requirement for renewable energy sources for meeting the RPO obligation and the only source available is “Solar”

•

The solar potential which is unexplored so far is of the order of lakhs of MW keeping in view of the solar insolation value in North-west of Rajasthan (Thar desert) and availability of waste land. In addition to meet the RPO obligation the solar projects would also increase the energy security for the state

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Detailed Project Report

•

10 MW Amritsar Solar Thermal power Plant

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 5,000 trillion KWh per year. The highest annual global radiation is received in Rajasthan, northern part of Gujarat. In those areas also large areas of land are barren and sparsely populated, making these areas suitable as locations for large central power stations based on solar energy.

o

Solar power also has the inherent quality that the power is produced when it is most needed and is only form of despatchable Renewable energy contrary to others. Rajasthan and particularly with a vast availability of waste land and receiving highest solar insolation value equivalent to DNI of 2185 kwh/m2/annum and it is believed that if 5% of Thar desert is covered with Solar collectors, it is sufficient to drive the present country’s energy demand.

In view of above the 10 MW solar based power at Amritsar in Rajasthan is justified.

2.1 Government Policy for Power Generation/Requirement of input/ clearances 2.2 Requirement of input/clearances 2.2.1 As per Electricity Act 2003, clause 7 stipulates “Any Generating Company may establish, operate and maintain a generating station without obtaining licence under this act if it complies with technical standards relating to connectivity with the grid”.

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10 MW Amritsar Solar Thermal power Plant

2.2.2 GOI guidelines stipulates certain requirements for setting up of power project, various Inputs/Statutory/Non statutory sanctions are to be tied-up. Relevant requirements thereof are as follows:1.

Registration of Company under Companies Act, 1956

ACME Tele Power Ltd is a registered company under Companies Act, 1956. However, the project is envisaged to be executed thru a SPV in line with the current practice and as a requirement for financing from banker’s prospective. The name of SPV company with due registration certificate along with its MoA etc will be intimated subsequently.

2.

Land availability

The project is proposed to be set up in Amritsar District. Total land requirement for the 10 MW project will be 30 Ha approximately. The land is identified is presently identified to be waste, unused and owned by private owners. The land identified is a plain land and appears to have good soil bearing strength.

3.

State Pollution Control Board Clearance

Solar based thermal power plant does not require any Environment clearance from Ministry of Environment & Forest and no Environment Impact Assessment (EIA) study also need to be carried out as per the EIA notification act of 14

th

Sept 2006. However, the consent to establish

/ NOC from Rajasthan State Pollution Control Board (SPCB) shall be required and due permission will be obtained before making the plant operational.

4.

Environmental & Forest Clearance from MOE&F/State Environment Dept.

As stated above, this is not applicable for a Solar project so long as no forest land is involved. The identified site doesn’t cover any sorts of

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10 MW Amritsar Solar Thermal power Plant

plantation or forest land as per forest record or even otherwise. Hence this permission is not applicable.

5.

Water availability

The source of surface water has been Indira Gandhi canal (Kanasar branch) at a distance of 6 kms of proposed site. The water has been used presently for the purpose of drinking, irrigation and for thermal power stations. It is proposed that upon award / sanction of the project by RREC/RERC request will be made for allocation of required consumptive water to the tune of 420 M

3

per day from the Commissioner

office of Indira Gandhi Nahar Pariyogana with due supports from Govt of Rajasthan.

6.

Airport Authority Clearance For Chimney Height

Since there is no Chimney involved and also there is no airports nearby, this clearance is not applicable.

7.

Power Absorption Plan

Power generated will be evacuated at 132 KV level to the nearest Substation at Karni. The power evacuation for the 10 MW will be carried out through a 132 KV double circuit feeder using AAAC Moose conductor. The generator voltage will be 10.5 KV which will be stepped up to 132 KV level through use of the generator transformer of 35 MVA capacity having voltage ratio of 138/10.5 KV (at nominal tap). The generating transformer will be provided with OLTC for the required voltage regulation. Map showing the proposed substation is enclosed as II.

8.

Prevailing tariff order and applicable Incentives.

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annex.

Detailed Project Report

•

10 MW Amritsar Solar Thermal power Plant

MNRE has announced for supporting 50 MW solar projects both for PV and solar thermal in 11

th

Plan by providing generation based

incentive through its notification in Jan/Mar 08. For that purpose it has decided the nominal base tariff for Rs 15 / kWh for PV and Rs 13/kwh for solar thermal. The subsidy component (max Rs 12 /kWh for PV and Rs 10/kwh for solar thermal) will be the difference of the highest tariff payable by respective state utility from the above notional tariff for solar power for a period of 10 years. Under this scheme 5 MW per developer and 10 MW per state has been allowed.

•

The National Solar Mission as per National Action Plan on Climate Change mandated for implementation of 1000 MW CSP (solar thermal) plant and manufacturing for 1000 MW PV components by 12 th Plan. The Policy formulation for implementation for 1000 MW CSP with preferential feed-in tariff with generation based incentive from GoI is under discussion of Ministry MNRE.

•

The state tariff solar orders announced by Rajasthan through its Order dated 2

nd

Apr 2008 – Rs 15.78 / kWh for PV and Rs 13.78 /

kWh for CSP for 10 MW projects under MNRE scheme. For projects (upto 50 MW) over & above MNRE scheme the tariff will be as approved by RERC on cost plus basis.

9.

Tariff Policy

The Tariff Policy issued by Ministry of Power, GoI dated 6 under Para 6.4 states followings:

(1) Pursuant to provisions of section 86(1)(e) of the Act, the Appropriate Commission shall fix a minimum percentage for purchase of energy from such sources taking into account availability of such resources in the region and its impact on retail tariffs. Such

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th

Jan 2006

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

percentage for purchase of energy should be made applicable for the tariffs to be determined by the SERCs latest by April 1, 2006. It will take some time before non-conventional technologies can compete with conventional sources in terms of cost of electricity. Therefore, procurement by distribution companies shall be done at preferential tariffs determined by the Appropriate Commission. (2) Such procurement by Distribution Licensees for future requirements shall be done, as far as possible, through competitive bidding process under Section 63 of the Act within suppliers offering energy from same type of non-conventional sources. In the long-term, these technologies would need to compete with other sources in terms of full costs.

(3) The C entral Commission should lay down guidelines within three months for pricing non-firm power, especially from non–conventional sources, to be followed in cases where such procurement is not through competitive bidding.

The CERC has recently evolved a discussion paper on pricing of nonconventional energy sources through its paper dated 16 which the order can be expected in near future.

However in view of the nascent stage of exploitation of solar energy in Indian context and in the long run interest of making this technology to become viable, it is absolutely not recommended for opting competitive bidding for discovering the tariff at this point of time. The sector has to be essentially nurtured with suitable guaranteed feed-in tariffs to be decided by the respective Commissions on Cost Plus basis. All countries which are already planning to develop this sector are providing preferential feed-in tariff to make this sector attractive financially. Thus they are creating an environment with guaranteed

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May 2008 for

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

returns where the requisite deployment is possible and inturn which automatically will reduce the cost.

The cost reductions are only possible when minimum deployment of solar projects occur, supply chain management get established, local manufacturing of critical components start in India. Hence till that time, the tariff is to be decided by the state regulators on Cost plus basis from the view point of the minimum RPO and its impact on retail tariff.

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

SECTION – 3 3.0 SITE FEATURES, FUEL AND WATER AVAILABILITY

3.1

LOCATION AND SITE DETAILS

Considerations for Site Selection

Siting of a Solar Thermal Power project is primarily governed by following considerations:

a) Availability of land b) Solar Insolation c) Availability of water and proximity to source d) Proximity to the existing grid

Topographic and site location Map is given in

3.2

annex. III.

Land

Land is required primarily for:

a)

Solar Field block, Power block comprising of TG building,

Cooling Towers, 132 KV switchyard, stores, workshop and administration building. The land required for accommodating the 10 MW Solar power plant is about 30 Ha.

3.3

Location and Accessibility The site for the proposed 10 MW project is identified in Amritsar district. The site is approximately 25 Km from Amritsar and nearest Na tional Highway is

NH15 (Amritsar – Jaisalmer).

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The region is hot and receives scanty rainfall.

3.4

Solar Insolation Level

The direct solar radiation as recorded at Jodhpur which is assumed to prevail in similar order and the values are placed as below. The detailed records are enclosed as per

annex. I.

As seen from here the

DNI value that is of importance for CSP technology is of the order of 2285 kwh/m2 per annum, considered to be an excellent site for development of CSP projects.

MEAN HOURLY DIRECT SOLAR RADIATION AT NORMAL INCIDENCE (kwh/m2) Hrs ending at

7 8 9 10 11 12 13 14 15 16 17 18 Jan 0.055 0.451 0.678 0.772 0.821 0.837 0.838 0.814 0.752 0.649 0.459 0.112 Feb 0.157 0.521 0.698 0.776 0.816 0.825 0.822 0.793 0.743 0.656 0.47 0.143 Mar 0.274 0.554 0.691 0.755 0.785 0.79 0.786 0.75 0.703 0.614 0.45 0.202 Apr 0.288 0.5 0.625 0.68 0.719 0.727 0.722 0.679 0.611 0.527 0.414 0.233 May 0.278 0.452 0.565 0.628 0.667 0.686 0.681 0.656 0.591 0.513 0.386 0.221 June 0.217 0.339 0.417 0.483 0.533 0.552 0.546 0.521 0.477 0.405 0.31 0.185 July 0.125 0.221 0.28 0.316 0.333 0.351 0.367 0.347 0.326 0.287 0.22 0.125 Aug 0.091 0.194 0.271 0.298 0.315 0.329 0.344 0.34 0.326 0.292 0.217 0.109 Sept 0.199 0.415 0.54 0.608 0.628 0.642 0.64 0.616 0.589 0.534 0.398 0.211 Oct 0.18 0.547 0.714 0.784 0.821 0.838 0.829 0.795 0.762 0.672 0.489 0.173 Nov 0.085 0.534 0.728 0.818 0.853 0.865 0.858 0.828 0.787 0.696 0.51 0.157 Dec 0.119 0.455 0.686 0.805 0.846 0.859 0.856 0.837 0.783 0.676 0.448 0.078 Annual 3.5

Water

Water required in a Solar thermal power station is similar to a conventional fossil fuel based power stations i.e. for:

a)

Circulating water/cooling tower make up.

b)

Make up for closed cooling water. c)

Make-up for steam/condensate cycle.

d)

Service & Drinking purpose water including for residential Colony

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e)

10 MW Amritsar Solar Thermal power Plant

Fire fighting

The break-up of water consumption for 10 MW project is illustrated as below.

M 3 /hr.

Evaporation Loss in Cooling tower

24

Blowdown for Cooling tower with COC of 5 Boiler DM water make-up Service 0.6 Miscellaneous

6

1

water 2

Residential Colony water

1.4

---------------------35 M

3

With plant operation envisaged for 12 hrs, the daily water requirement would be in the order of 420 M

3.6

3

.

Proximity to Grid

Power Absorption Plan

Power generated will be evacuated at 132 KV level to the nearest Substation at Karni. The power evacuation for the 10 MW will be carried out through a 132 KV double circuit feeder using AAAC Moose conductor. The generator voltage will be 10.5 KV which will be stepped up to 132 KV level through use of the generator transformer of 35 MVA capacity having voltage ratio of 138/10.5 KV (at nominal tap). The generating transformer will be provided with OLTC for the required voltage regulation. Map showing the proposed substation is enclosed as

annex. II.

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/hr

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

SECTION – 4 4.0

TECHNOLOGY SELECTION

4.1 Basics of Solar Power There are two ways of producing electricity from solar source i.e. thru Solar Photo – Voltaic (PV) or Solar Thermal. PV cells convert incident light directly into electricity as explained in Particle theory of Physics. Incident photons (light ray) strike on the PV cell (made of special grade Silicon - a semiconductor) and "knock off" electrons. These "free" electrons start flowing through a circuit forming an electrical current. Solar thermal uses the heat component of the solar source. Heat is used directly or through an intermediate fluid to generate steam which is used in steam turbine to produce the electricity.

4.2 PV Technology Flat-plate photovoltaic collectors contain an array of individual photovoltaic cells, connected in a series/parallel circuit, and encapsulated within a sandwich structure with the front surface being glass or plastic. Solar energy falls directly upon the photovoltaic cell front surface and produces a small direct current voltage, providing electrical energy to a load. Unlike thermal collectors however, the backside of the panel is not insulated. Photovoltaic panels need to loose as much heat as possible to the atmosphere to optimize their performance. Like flat-plate photovoltaic collectors (panels) absorb both energy coming directly from the sun's disc, and diffuse and reflected energy coming from other directions. In general, flat-plate photovoltaic panels are mounted in a fixed position and tilted toward the south to optimize noontime and daily energy production. However, it is common to see flat-plate photovoltaic

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panels mounted on mechanisms that track the sun about one tilted axis, thereby increasing the daily output of the panels. 4.3 Solar Thermal Power Generating Technology

Concentrating solar power (CSP), also known as solar thermal power is a relatively unexploited form of renewable energy. The technology uses concentrated solar radiation through sun tracking mirrors for electricity generation in large-scale gird-connected power plants. This fact distinguishes CSP from many other renewable energy technologies and promise to become cost-competitive with conventional fossil fuel plants during the next decade. If approximately 1% of the world’s desert area were covered by solar thermal power plants, sufficient energy would be generated to meet today’s entire electricity demand and similarly if 5% of our Thar desert is covered, it can replace the present electricity produced from all Utility power plants all over India. India is a sun belt country and receives abundant solar energy equivalent to 5000 Trillion kWh per year and more importantly it has vast waste land available not useful for any other purpose.

Despite the few existing solar thermal power plants worldwide and the meager public awareness, CSP is already a commercially proven and demonstrated technology. According to the way of concentration, different CSP concepts turned out for different applications and market segments. It works on two principles either on line focusing or point focusing mode. Three popular technologies are available today commercially for large scale deployment if proper break-through is made in a cohesive manner overcoming the present bottlenecks in supply chain and removal of entry barriers for new players in the field. Those are Parabolic tough technology (PTC), Solar Towers used for utility MW scale power plants and Parabolic Dish using sterling engines used for KW scale Distributed generation.

4.3.1 Parabolic trough system:

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

Parabolic trough power plants are line-focusing Solar Thermal Electric (STE) power plants. Trough systems use the low iron mirrors of parabolic shape to focus direct solar radiation on a 70 mm dia absorber pipe running along the focal line of the parabola. The HTF (heat transfer fluid) inside the absorber pipe is heated and pumped to the steam generator, which, in turn, is connected to a steam turbine. The collectors rotate about horizontal north– south axes through solar tracking system. The major components in the system are Mirrors, absorber tubes, Collector frames which position the mirrors & absorber tubes, solar tracking controls, fluid transfer pumps, Heat exchanger for using the heat in forming steam which is used in conventional rankine cycle power block consisting of a reheat or non-reheat turbine with regenerative feed water heaters, deaerators. These types of power plants can have energy storage system or instead they are coupled to natural gas fired back up systems. A typical configuration of such systems is shown in Figure below.

4.3.2 Solar Tower with Central Receiver:

Solar power towers generate electric power from sunlight by focusing concentrated solar radiation on a tower-mounted heat exchanger (receiver). Solar tower power plants are point-focusing Solar Thermal Electric (STE) power plants. In power tower systems, heliostats (A Heliostat is a device

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

that tracks the movement of the sun which is used to orient a mirror of field of mirrors, throughout the day, to reflect sunlight onto a target-receiver) reflect and concentrate sunlight onto a central tower-mounted receiver where the energy is transferred through HTF i.e. through hot air, or thru molten nitrate salt or can be used to direct generate steam. Heliostat field, the heliostat controls, the receiver, the storage system, and the steam turbine, which drives the generator, are the major components of the system.

Solar Receiver

Steam 40bar, 250°C

Turbine Generator 11.0 MWe

Heliostat field

Storage

Condenser 0,06 bar, 50°C 4.3.3 Parabolic dish systems:

The parabolic dish system uses a parabolic dish shaped mirror or a modular mirror system that approximates a parabola and incorporates two-axis tracking to focus the sunlight onto receivers located at the focal point of the dish, which absorbs the energy and converts it into thermal energy. This can be used directly as heat for thermal application or for power generation. The thermal energy can either be transported to a central generator for conversion, or it can be converted directly into electricity at a local generator coupled to the receiver (Figure below)

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Detailed Project Report

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4.4 Integration with Power Cycles Because of their thermal nature, all the solar thermal technologies can be hybridized, or operated with fossil fuel. Hybridization has the potential to increase the output of CSP plant by increasing its availability and dispatchability, decreasing its cost (by making more effective use of power generation equipment), and reducing technological risk by allowing conventional fuel use when needed. This type of plants are called as Integrated Steam Combined Cycle System (ISCCS). 4.5

Thermal Storage In case of Solar Thermal power plant there is potential for producing electricity, even after sun sets through use of thermal storage of 6-8 hours. Probably this is one of solar thermal’s biggest strength just as hydel and can be used for meeting the peak load requirement

. Here two tank storage

system is employed with two nos. of molten nitrate salt (60% NaNO3 + 40% KNo3) which stores sensible heat storage during day time by installation of additional solar collector fields depending the storage hours of operation. After sunset the stored sensible heat from the hot molten tank passes to the cold tank after releasing its heat in the heat exchanger.

4.6

Experience in CSP Industry

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Detailed Project Report

a.

10 MW Amritsar Solar Thermal power Plant

CSP was first commercialized in mid 1980’s in California in the United States. LUZ Company installed nine such plants between 1985–1991 totaling to 354 MWe capacity. The units are still operating producing electricity at price even lesser than conventional fossil fuel plants. Though the plants were commercialized between mid eighties and early nineties after the experiencing the Oil shock in 1970’s, but subsequent fall of fossil fuel price and withdrawal of tax credits by US Govt, made the developer Luz bankrupt and so the whole sector went into dormant state.

b.

After a long time gap and with rise in oil/other fossil fuel prices, the industry has again kick-started; the start was with a 64 MW plant built at Nevada in US using parabolic trough technologies similar to SEGS plant and operating since June 2007. Besides another 11 MW plant (PS 10) using solar tower technology is put on operational in Spain in April 2007. This makes for a total of 429 MW CSP plant operation at the moment on commercial basis.

c. In addition to that 370 MW CSP plant are under construction in Spain, with one unit of 49.9 MW with 7.5 hrs thermal storage at Andasol on parabolic trough technology and another 20 MW plant (PS 20) using solar tower technology will come into operation by the end of this year. Besides other major CSP installations under construction are:i. ii. iii.

d.

Algeria 130 MW ISCCS with 30 MW CSP. Morocco 450 MW ISCCS with 30 MW CSP. Egypt 130 MW ISCCS with 20 MW CSP.

Additional 4000 MW CSP projects are under various stages of development across various countries and mainly in US, Spain, Israel, Abu-Dhabi, Egypt, North African countries.

4.7

Selected Technology For Rajasthan’s Amritsar Project

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

The selection of technology for the proposed project is made based on following points.

•

Solar thermal power plants are optimal with Megawatt class power generation while Solar PV based plants are generally better suited for distributed power generation application.

•

Because of its inherent process of conversion of electricity, PV cells work better in cold weather conditions with bright sunlight, and Solar thermal (CSP) technology works best in hot weather condition.

•

The efficiency of PV based plants is highest at min ambient temp and same drops down with increase in ambient temperature. This is because of increase in junction resistance and accordingly occurrence of higher internal voltage drop. On the other hand Solar to thermal efficiency for CSP technology achieves peak value at highest ambient temperature.

•

In case of Solar Thermal power plant there is potential for producing electricity, even after sun sets through use of thermal storage of 6-8 hours. Probably this is one of solar thermal’s biggest strength just as hydel and can be used for meeting the peak load requirement.

•

PV based plant uses silicon which is presently expensive and needs lots of innovation & volume to reduce its capital cost to compete with conventional fossil plant. On the contrary the solar thermal option uses commonly used glass and steel which have no constraints in today’s production and more over the power block having boiler and steam turbine are similar to conventional coal fired power plant. So potential for effecting capital cost reduction with increase in volume is very high for Solar thermal plants. Presently the capex of CSP is high because of limited players and limited users.

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

In view of strengths of technologies as discussed, size of the plant, location of proposed power station, potential of cost reduction with volume of deployment, proveness of technology else where in similar conditions, it is recommended to go for

CSP-Solar Tower Technology

. In the solar block

there will be large nos. of flat mirrors (called as heliostats) made of low iron mirror will be concentrating & converging the direct solar radiation to a single point (called as receiver) to be located on top of a 45 Meter concrete / steel tower. The receiver will receive the heat and would make steam out of feed water. The superheated steam at parameters of 59 bar & at temperature of 427 deg C will be passed through a conventional steam turbine to generate electricity. The bottoming cycle will be a conventional rankine cycle having steam turbine with condenser, cooling tower & CW system. The difference with a conventional coal fired plant would be in regards to coal fired boiler and its auxiliary plant for coal & ash handling plant which would be replaced with solar fields giving the requisite heat input. The plant will have no hybrid i.e. no supporting fuels such as gas or coal and it would have no thermal storage also. So the plant would be started and would generate during the day time only and would stop when sun sets. The steam turbine and its auxiliary system will be designed for daily start and daily stop. During starting time & during stopping time the project would be drawing the auxiliary power from the grid as start-up power. A schematic on this is provided as below.

Solar Receiver

Steam 59bar, 427°C

Turbine Generator

Heliostat field

Storage

Condenser 0,06 bar, 50°C

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

Configuration details of Rajasthan’s Amritsar project: The proposed project will have two modular units of 5 MW capacity and the technology will be based on CSP – Solar tower technology, working on a point focus technology instead of line focusing technology as adopted in the Parabolic trough technology. It shall have large nos. of flat mirrors (called as heliostats) made out of low iron glass, which will be concentrating & converging the direct solar radiation to a single point (called as receiver) to be located on top of a 45 Meter concrete / steel tower. There will be 2 nos. receiver towers and 20 nos. towers for cameras for each 5 MW CSP plant. Each heliostats will have own steel supporting structure with rotating mechanism for two dimensional solar tracking system and a software driven central control system, which will be sending the signals for the same. Each receiver tower will have 12180 sq M mirrors out of which half of the mirrors will be positioned in north side of tower and another 50% mirrors will be located in south of the tower and all of them will be facing East-West side. Each mirror will be of 1420 mm X 800mm dimension and will have two-dimensional solar tracking system and would track the sun and concentrate the solar radiation to a receiver at single point both at front and rear wall of the receiver. Thus each 5 MW plant will have 24,360 having very low iron content with very high reflectivity in the order of more than 94% and having very low absorbity. Each receiver will have steaming capacity of approximately 14 tons per hour and would be joining to a common steam header at 59 bar & at temperature of 427 deg C. The superheated steam at this pressure will be expanded in a conventional steam turbine having nominal rating of 5 MW. The steam turbine will have a regenerative and non-reheat type thermodynamic rankine cycle. The feed water temperature leaving the HP/LP heaters & Deareator will be at around 135 deg C. The feed water will be sent back to the receivers through a common feed water header through Boiler feed water pumps and the condensate extraction pumps.

The bottoming cycle will be a conventional rankine cycle having steam turbine with condenser, cooling tower & CW system. The difference with a conventional coal fired plant would be in regards to coal fired boiler and its auxiliary plant for coal & ash handling plant which would be replaced with solar fields giving the requisite heat

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mirrors

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

input. The plant will have no hybrid i.e. no supporting fuels such as gas or coal and it would have no thermal storage also. So the plant would be started and would generate during the day time only and would stop when sun sets. The steam turbine and its auxiliary system will be designed for daily start and daily stop. During starting time & during stopping time the project would be drawing the auxiliary power from the grid as start-up power. A schematic on this is provided as below.

Solar Receiver

Steam 59bar, 427°C

Turbine Generator 5 MW

Heliostat field

Storage

Condenser 0,06 bar, 50°C

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

SECTION – 5

5.0 PLOT PLAN AND GENERAL ARRANGEMENT

5.1

Plot Plan

The plot plan will be basically comprised of approximately 30 Ha solar field containing heliostat, mirrors, receiver and the power block including the Turbine Building, Cooling tower and associated CW/ACW system will be inserted at the central location of Solar block for optimization.

The proposed plant and equipment will be located in such a way as to facilitate extension of the facilities/access etc.

Except for the outdoor solar mirrors, outdoor transformer, and switchyard, all other equipment shall be located indoors.

Plant roads shall be laid to provide access to various areas of the proposed station, taking due care for movement of materials. The schematic of plot plan is attached as

annexure - V

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

SECTION - 6

6.0

ENVIRONMENTAL CONSIDERATIONS

Solar based thermal power plants do not use any fuel and therefore do not contribute to environmental pollution so much so that MOEF has excluded Solar Power Plants from their purview. No type of air pollution is envisaged from the proposed power plant while the water effluent handling will not be a major task in view of no involvement of fly/bottom ash. The plant shall obtain the No Objection Certificate / Consent to Establish from the State Pollution Control Board.

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

SECTION - 7

7.0

7.1

MANAGEMENT AND EXECUTION OF PROJECT

Management

Overall management of the Project will be looked after by the executives of the SPV project company. They will also look after the overall planning, coordination, monitoring of the progress of the project, award of contracts for procurement of plant and equipment and civil works, etc.

The project will be executed on an EPC basis separately for Solar Block and Power Block and the EPC contract shall be awarded to an experienced contractor. If required, further split may be done to optimize the capital cost. Engineering agency will be deployed separately for Power Block and Solar Block. The engg agency engaged for power block will also act as owner’s engineer and would be responsible for review / interface design along with solar block, support supervisory service for site construction management and would be overall responsible. The project company shall arrange to carry out the preparation of tender documents, technical specifications, evaluation of bids, drawing approvals, review of detailed design and engineering work, inspection of plant and equipment at the manufacturer/ suppliers works, supervision and quality control during erection, testing and commissioning and guarantee test of various plant and equipment at Project site.

7.2

Construction Organization

The construction organisation at site will be headed by a Project Manager who will be assisted by a number of other executives and supervisory staff. The construction organisation at site will have three main groups – one for civil works, one for erection of equipment and one for testing and

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

commissioning of equipment. Supporting functions such as administration, planning, finance, accounts, material management, quality control and supervision during erection, testing and commissioning of the Project will be provided by the construction organisation including consultants. Construction of Civil works and erection, testing and commissioning of the plant and equipment will be got done through contractors / suppliers of equipment on turnkey basis.

7.3

Infrastructure Requirements

During the construction period, an area of about 500 m provided for construction of temporary storage sheds and office and open space for storing of construction material and equipment. Adequate space is available at the proposed site. Power and water required during construction, erection, testing and commissioning will t ied up. Approach road to site will be developed.

Certain open area, outside of plant site, will have to be organised to allow construction of labour colony and temporary living accommodation for contractor’s staff.

7.4

Availability of Construction Material

Raw material for the construction of the proposed station, such as stone aggregate will be available from surrounding areas. Cement and steel can be purchased from the open market. Kiln burn quality bricks can be obtained from suppliers within the district. However exact sources of supplies will have to be tied up.

7.5

Methodology of Execution

The implementation of the project may be got carried out through an EPC contract. The entire work will be got executed through contracting

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2

is proposed to be

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

agencies under the overall supervision of the construction organisation and consultants.

7.6

Construction Schedule

The completion schedule will be 18 months from the date of signing of PPA and obtainment of other clearances, financial closure and possession of land etc. The broad implementation plan is enclosed as

7.7

Operation & Maintenance

The operation and maintenance organisation will be headed by a Station Superintendent who will be assisted by adequate number of supervisors, operators, technicians, helpers etc. The estimated total manpower for operation and maintenance of the power station is expected to be of the order of 50.

7.8

Training

For operation and maintenance of thermal power plants of this capacity the adequate experience and expertise exists in the country. Training of O & M staff will be arranged through prevalent methods and practices which will include training by technology suppliers, various audio – visual cards, a well maintained Library and requisite set up for Training activity. These will be reinforced by •

In-plant training to the operators at the site itself prior to commissioning of the plant.

•

Continued training of O& M staff through experts and suppliers staff as part of the in-plant training programme.

•

Specialized training at various Training institutes in the country.

•

Training at suppliers works and construction activities.

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annex. IV.

Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

SECTION – 8

8.0 FINANCIAL ASPECTS

The capital cost for the proposed 10 MW project has been estimated based on a) eSolar’s offer for the Solar field components b) offers received from domestic sources for the Power Block components & Receiver tower and c) break up as per our consultant’s database for balance of plant. The complete break-upof capital cost estimate alongwith operational and financial norms for the project is provided in Annexure D

hereto. The main capital cost, operational and financial norms for

the project proposed by the petitioner is as under for the purpose of calculation of tariff in a conventional way: 8.2

Funding Sources

The equity capital shall be made up through ACME’s own resources.

The loan capital shall be made up through loans from financial institutions / banks on the basis of balance sheet of ACME Tele Power Limited.

8.3

Cost of Generation

The levellised cost of generation of electrical power for the proposed 10 MW unit has been estimated at

Rs 12.85 / KWhr

on the basis of assumptions given

below:

Plant Capacity 10 MW Capital cost Rs. 14.96 crores per MW (including the IDC). Detailed break-up as per annex. D Debt : Equity 70:30

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

Tenure of the Debt 10 years with quarterly payment for installation Tenure of PPA 25 years Construction period of the project 18 months Depreciation 3.6% Advance against depreciation As per the CERC norm and the salvage value considered as 10% of the Project cost Rate of interest on long term loan 12% Rate of interest on working capital 12% Working capital

•

One month O&M Charge

•

One month receivables

•

20% of the O&M cost as maintenance spares

PLF 24% O&M

0.75% of the project cost

Insurance

0.25 % of the project cost 3% considered as inflation on year to year

Aux consumption 10% 3% additional has been considered for drawing from the grid during daily start and stop operation. Tax Tax holiday for 10 years MAT @ 11.33% Corporate tax @ 33.99% Discount factor 10.49% Return on Equity 15.5 % CDM Benefit 100 % passed on to tariff with assumption of

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Detailed Project Report

10 MW Amritsar Solar Thermal power Plant

saving of CO2 emmission @ 0.85 kg/kWh and the carbon credit of Rs 1000 per ton for a period of 25 years Grid Power rate for start-up Rs 4 /kwh

8.4 All input costs are considered at current day prices. Provisions have been made towards escalation in prices of O&M costs.

8.5

Statutory taxes/levies/duties/cess or any other kind of impositions whatsoever imposed/charged by Central Government/ State Government and/ or any other local bodies/authorities on generation and sale of power, including auxiliary power consumption has not been considered.

It can be seen from the following table (listing the cost of executed Plants as have been reported in public Domain) that our proposed tariff for the solar plant is lowest among them.

Project Cost Cost Per MW (Current) Nevada 64 MW (yr 2007) 262 MUSD 20.46 Cr per MW Andasol (50 MW) with thermal storage (yr 2008) 300 Million Euro 40.8 Cr per MW Andasol (50 MW) without thermal storage

197 Million Euro 26.79 Cr per MW

(yr 2008) SEGS unit IV (30 MW) (yr 1989) 90 Million USD 15 Cr per MW

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