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Beginning
in the 1980s, energy planners reviewed
options for parabolic trough, solar thermal
power stations in developing countries.
However, this renewable energy technology,
particularly suitable for tropical developing
countries with stable and intensive degrees of
solar insolation, was first introduced in industrialized
country power markets. More than 300
megawatts (MW) of active solar thermal power
capacity were installed in California in the early
1980s.
In 1994, the Indian government commissioned
a site specific feasibility study for a 35 MW
power plant to be situated in arid Mathania,
Rajasthan, near Jodhpur. This study became the
subject of further review by engineering consultants
engaged by the state government of
Rajasthan and was supplemented by technical
options assessments conducted in 1996 with the
assistance of the German bank KfW. As the
outcomes of these assessments and solar field
performance reviews were favorable, the
Rajasthan government decided to pursue the first
commercial-scale, solar thermal investment in
a developing country and invited KfW and the
GEF to support this pioneering undertaking.
The main objectives of the Mathania project were:
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(a) to demonstrate the operational viability of
parabolic trough, solar thermal power generation
in India;
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(b) promote commercial development
of solar thermal technology and cost reduction;
and
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(c) help reduce greenhouse gas global
emissions in the short and longer term.
Operational viability was to be demonstrated
through operation of a solar thermal plant by an
independent power producer which should sell
power to the utility through commercial power
sales and contracts.
The Mathania project concept entered the GEF
work program in 1996. With a
GEF contribution
of US$49 million and a total financing volume
of US$245 million (co-financed by the
government of India and KfW, and executed by
KfW), it was one of the largest of some 82 GEF sponsored
energy investments.
The
prequalification of potential Contractors had been conducted in 2001. At
that time there was little interest from international Combined Cycle
Companies to involve themselves in solar technologies. (This however has
later changed considerably.) Only three Consortia were prequalified, and
the only one Consortia under international leadership later on declined to
bid. This left only two Bidders (the Indian companies
BHEL and
Larsen & Toubro). Both Bidders had the same Solar Subcontractor (SOLEL).
Due to
internal difficulties neither of the two Consortia did manage to submit a
Bid. After several prolongations the bidding process was terminated in late
2003, and it was decided to reopen the Bidding also for new Bidders. By
that time new International Consortia had shown interest and were ready to
enter the Bidding. It was also decided to change the approach to an
“and/or” approach (Bidding for ISCC and/or Bidding for the Solar Island
and/or Bidding for Combined Cycle Island) in order to improve the
competitive situation. In February 2004
Fichtner Solar GmbH was assigned
the task to modify the Bid Document (RfP) accordingly.
Before
the Bid Document (RfP) could have been issued by the middle of 2004, the
World Bank requested, that the Indian Government reconfirm the commitment of
all involved public authorities towards the project. The discussions within
India to get this “all-Indian-commitment” are currently ongoing.
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