Financial viability assessment of concentrated solar power technologies under Indian climatic conditions

Abstract

In the present work, the financial viability of three CSP technologies viz. PTC, SPT and LFR for 50 MW, CSP power plants, has been studied for 10 different locations of diverse climate conditions in India. Latest fiscal guidelines laid by the Central Electricity Regulatory Commission (CERC) in 2016 have been followed in the System Advisor Model. Levelized cost of electricity (LCOE), Payback Period (PBP), Discounted Payback Period (DPP), Net Present Value (NPV), and Capital Recovery Factor (CRF) have been estimated to obtain a holistic extensive research view of the CSP projects. The highest NPV is 2626.68, 1311.25, and 827.90 million ₹, and the lowest LCOE calculated is 9.89, 10.63, and 10.99 ₹/kWh for SPT, PTC and LFR. Jodhpur has been identified as the most suitable location for the installation of a CSP plant. A 50 MW Solar Power Tower based CSP plant has LCOE of 9.89 ₹/kWh, PBP of 2.20 years, and NPV of 2626.68 million ₹, which is the best among all selected locations. The findings of this research will help in selecting locations and CSP technology for the installation of power plants. It will also assist investors to understand the financial viability of the project beforehand.