| Project Detail |
The objective of the Hybrid Solar Thermal Power Plant Project is to demonstrate and encourage the replication of Integrated Solar Combined Cycle System (ISCCS) power generation technology in Mexico and elsewhere, thereby contributing to the reduction in global Green House Gases (GHG) emissions. The ISCCS technology is comprised of both the installation of a combined cycle thermal plant and of a solar field. The US$49.3 million Global Environment Facility (GEF) grant will finance the costs associated with the installation of the solar field, while the Comision Federal de Electricidad - CFE, the national power utility will finance the combined cycle thermal plant and the other parts of the system. The project is being implemented by CFE in the municipality of Agua Prieta, in the state of Sonora, Mexico. However, the first two bidding processes launched by CFE on September 2006 and February 2008, respectively, experienced difficulties. Even though the capital investment ceiling by CFE and authorized by the secretary of finance was increased by 25 percent for the second bidding, the amount proved to be too low in both cases. The cost of adding a solar field of approximately 31 MW to an existing 485 MW combined cycle thermal plant, which was originally estimated to be US$52.3 million (equivalent to 1,687 US$/kW), also proved to be too low. The results of the bids for the technically comparable ISCCS projects in Morocco and Egypt (both 3,700 US$/kW) confirmed that the cost of the solar field in Mexico will also be substantially higher than estimated at appraisal. As a result, on June 5, 2008, the GEF approved a reduction in the generation capacity of the solar field to the 12-15MW range, to reduce its expected cost to the level of the available GEF financing. Based on the updated calendar for the implementation of the project, on February 16, 2010, the Government submitted |
