Reliance Power has said that its 100 MW CSP (concentrated solar project) project in Jaisalmer district of Rajasthan has begun generating power.

It has been synchronised with the grid.

RPower said the plant is being built at a cost of Rs 2,100 crore, adjacent to the 40 MW solar photovoltaic project commissioned last year. Rajasthan Sun Technique Energy Pvt Ltd, a wholly owned subsidiary of Reliance Power, was awarded the project in December 2010.

The award was based on international competitive bidding conducted by NTPC Vidyut Vyapar Nigam Ltd (a subsidiary of NTPC) under the National Solar Mission programme.

NTPC Vidyut Vyapar Nigam will take 100 per cent of the power generated for 25 years. RPower said the project has 25 per cent reserve margin to meet the 25-year power purchase agreement.

The project is financed by debt from multilateral agencies such as the Asian Development Bank, Export Import Bank of the US, Financerings Maatschappu Voor Ontwikkelingslanden N.V. (FMO), the Netherlands, and Axis Bank.

Areva Solar, a US subsidiary of the Areva SA of France, has provided the CFLR (compact linear fresnel reflector) technology for the project.

With this project, R Power said its generation capacity has increased to 5,285 MW, which includes 5,100 MW of thermal capacity and 185 MW of renewable energy.