An analysis of costs of parabolic trough technology in India

http://dx.doi.org/10.1016/j.enpol.2012.05.041

Abstract: There is a global resurgence in solar thermal power across the world. This paper provides a transparent framework for calculating the cost of generated electricity from a concentrated solar power (CSP) plant and the internal rate of return on equity. The different factors contributing to the capital cost and generation cost of CSP technology have been discussed. The effect of variation of plant size, solar insolation and discount rate has been shown. India has launched the Jawaharlal Nehru National Solar Mission (JNNSM) and plans to install 20 GW of grid connected solar power by 2022. An analysis of the bids received in the National Thermal Power Corporation’s Vidyut Vyapar Nigam Ltd. (NVVN) bidding process, indicates that successful companies have access to low interest capital (effective discount rate ranging from 6.3–12.2%). With the current generation cost of 11–12 Rs/kW h (24–25 US Cents/kW h), an achievable target for CSP in the future is likely to be 6.5–7 Rs/kW h (14–15 US Cents/kW h). This may be possible through reductions in solar field and power block costs combined with increases in collector and overall plant efficiency.

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Highlights

► Framework for calculation of costs of parabolic trough technology.
► Parametric variation of factors affecting the economics of parabolic trough technology.
► Analysis of the NVVN reverse bidding process has been carried out

 

Fig. 1. Cumulative solar thermal power plant installations across the world.

 

Fig. 2. Factors for calculation of generation costs for solar thermal technology

 

Fig. 3. Calculation of IRR equity for solar thermal technology

 

Fig. 4. Trend in capital cost of CSP.

 

Fig. 6. Schematic of a parabolic trough based solar thermal power plant.

 

Fig. 7. Capital cost breakup for base case.

 

Fig. 8. Cost of generated electricity vs solar insolation.

Fig. 9. Investment cost in Rs. Million/MWe vs solar insolation.

 

Fig. 10. Capital cost variation of solar power plants with storage

 

Fig. 11. Capital cost variation of solar power plants without storage.

 

Fig. 12. Cost of generation variation with plant size (with storage).

 

Fig. 13. Cost of generation variation with plant size (without storage).

 

Fig. 14. Cost of generation variation with discount rate.

 

Fig. 15. IRR equity vs interest rate on loan.

 

Fig. 16. Effect of storage hours on cost of generation.

 

Fig. 17. Comparison of bid price and calculated price by our model 

by Pranesh Krishnamurthy^a, Shreya Mishra^b, Rangan Banerjee^{a, ,}  

^a Department of Energy Science and Engineering, Indian Institute of Technology Bombay, Powai, Mumbai 400076, India  

^b Department of Mechanical Engineering, Indian Institute of Technology Bombay, India 

Energy Policy via Elsevier Science Direct www.ScienceDirect.com 

Volume 48, September 2012, Pages 407–419

Keywords: Solar thermal, Parabolic trough, Cost analysis