Report of Indian Institute of Public Administration ... - Ministry of Power

Rajasthan
is to be located should also be persuaded to join as a partner State. Once the
alternative of pithead stations becomes viable and tariff turns out to be attractive, the
States will avoid the temptation of having thermal stations located far off from the
coalmines.
NON-CONVENTIONAL ENERGY (RAJASTHAN RENEWABLE ENERGY
CORPORATION LIMITED)
The Renewable Energy Corporation Ltd., a Government of Rajasthan undertaking,
looks after the issues of renewable energy in the State. The organisation has done
commendable work particularly in the area of wind energy and by now a capacity of
352 MW has been created at a cost of Rs 1,588 crore. Suzlon and Enercon are the key
private players in setting up wind generation plants and then handing them over to
different private parties who find the projects attractive, particularly because of the
income tax incentives, etc. A few biomass plants have also been set up.
MATHANIA SOLAR PROJECT
Rajasthan receives the maximum solar insolation in the country and much needs to be
done to utilise this potential. Unfortunately, the progress of the Mathania solar project
presents a picture of inadequate planning. Studies conducted by the Ministry for Non-
Conventional Energy Sources (MNES) have identified Mathania as the most suitable
site for setting up of a 30 MW solar power plant in 1990. Detailed Project Report
(DPR) was prepared through BHEL for a 35 MW solar plant. At the instance of
Global Environment Trust, World Bank and KFW (Germany), a comprehensive
feasibility report was prepared by Engineers India Limited (EIL) in June 1995. Since
then, the project has taken many twists and turns. Not satisfied with generation during
the day time, the Rajasthan authorities opted for a 125 MW component of Naphthabased
combined cycle power plant. In a 140 MW plant, with solar component being
only 35 MW, it is difficult to term it as a solar plant. The naphtha prices in the
international market were skyrocketing and the authorities should have realised the
futility of such an option but they persisted with this option for years. Finally, naphtha
was replaced by Liquified Natural Gas (LNG). It involved laying of more than 300 km
long pipelines from one corner of the State to another. This option too, with heavy
expenditure on the gas pipeline was unlikely to succeed and finally Gas Authority of
Industry of India Limited (GAIL) backed out from the project. The Rajasthan
authorities perhaps would do well to concentrate on the solar component of the project
instead of trying to make it a hybrid plant.
6.13