NTPC becomes first CPSU to invite bids for setting up concentrated solar power plant

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NTPC Ltd has decided to set up a 50 MW concentrated solar power project in India. The Central Public Sector Undertaking (CPSU) has invited expressions of interest (EOI) from bidders for the project, which will also include a thermal energy storage system for supplying green energy during the night time and peak hours.

Another power sector CPSU, Solar Energy Corporation of India (SECI), is also planning to float a tender for a concentrated solar power project, which at 500 MW will be bigger than NTPC's proposed project. However, SECI is yet to issue the tender, making NTPC the first CPSU to get into concentrated solar power systems.

Concentrated solar power (CSP) technologies use a mirror configuration to concentrate sunlight onto a receiver and convert it into heat. The heat can then be used to create steam to drive a turbine to produce electrical power or used as industrial process heat. It is 100 percent renewable energy.

The tender document, issued by NTPC's renewable arm - NTPC Green Energy Ltd - stated that the prospective developer will develop the project on a build-own-operate basis. It will supply 50 MW of renewable energy power, ensuring the annual availability of minimum 70 percent of the contracted capacity in MW during 8 hours of peak demand and non-solar hours. It also mandated the use of only concentrated solar power to charge the thermal energy storage system.

"Based on the techno-commercial analysis of the responses in the EOl and further discussions with interested parties, if the project is found commercially feasible, NTPC may proceed for further power purchase agreement for a period of 25 years or may not proceed with any project at this stage," read the tender document. Applications can be submitted until May 9, it stated.

On March 14, Moneycontrol was the first to report that the Union government is now planning to bring in concentrated solar power systems for large renewable energy parks or farms.

Solar PV modules are good for domestic rooftops as well as large projects due to their well-established supply chain ecosystem. It is also more cost-effective as of now, compared to CSP. However, solar PV modules still offer only 18-50 percent efficiency, whereas CSP technologies are capable of higher efficiencies, although the number is yet to be benchmarked.

The biggest advantage CSP has over solar PV modules is dispatchability. CSPs allow dispatchable power, which can be saved and utilised to create energy when required, even after the sun has set.