India is blessed with good solar resources and many regions of the country receive above-average sunshine compared to other regions of the world. The primary technology used for harnessing and converting solar energy into electrical energy in India is based on photovoltaic (PV) cells. Concentrated solar power (CSP) has hardly contributed to the overall installed solar power capacity in the country. In this article, some of the challenges that have inhibited the growth of CSP are identified and possible solutions suggested. The critical challenges for CSP are related to the lack of reliable direct normal irradiance database, indigenous manufacturing and competition from PV. The results of a case study carried out to assess the impact of indigenous manufacturing and economies of scale on capital costs and levelized cost of electricity are presented. This study shows that even with indigenous manufacturing and considering economies of scale, the capital cost per MW (Megawatt) of installed capacity is higher than the Central Electricity Regulatory Commission benchmark costs. To initiate larger adoption of CSP in India, we may have to consider alternative configurations, such as coupling desalination or thermal cooling systems to a CSP power plant. The merits of such configurations, called poly-generation plants, are presented for the Indian scenario.
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