Reliance Power has said it has “no comments from our side” to a query on the impact of Areva, its technology partner, exiting the solar thermal business.

Earlier this month, French major Areva had announced its exit from the solar thermal business.

With “no comments” from Reliance Power, the fate of the $415-million project — touted to be Asia’s biggest solar thermal plant — is unclear.

When Reliance Power responded to a tender of the Ministry of New and Renewable Energy in 2011 to set up solar thermal power plants in India and sell the electricity to a government-owned body for ₹11.97 a kWhr, it took a big leap of faith in terms of technology.

The ‘linear fresnel’ technology for solar is an emerging technology globally. Reliance Power opting for that technology was anchored in partner Areva’s name and reputation.

With Areva’s help, Reliance Power proceeded to build the world’s largest solar thermal power plant using linear fresnel technology. In solar thermal plants, parabolic mirrors focus light on to a tube containing a special fluid, to heat it up.

The fluid, in turn, transfers the heat to water to produce steam and the steam drives the turbines to generate electricity. Linear fresnel plants use lenses instead of mirrors. Reliance Power’s special purpose vehicle Rajasthan Sun Technique won the bid to set up a 100-MW plant at Dhursar in Rajasthan.

The project received funding from the US Exim Bank ($80 million), the Asian Development Bank ($103 million), the Dutch lending agency FMO ($105 million), and Axis Bank (₹1,100 crore). These loans need to be paid back over 18 years.

In December 2013, Areva announced reaching “a milestone” in the plant — achieving steam production.

Reliance Power’s website even now says the project “is expected to be commissioned in March 2013.”

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