Hybrid Solar Thermal Power Plant

The project will introduce a solar thermal component of about 29 MW to a 271 MW combined cycle gas turbine (CCGT) with an expected cost of the former ranging from US$1,650/kW to US$2,000/kW. It will include associated training, capacity building and monitoring activities. A GEF grant of between US$39.19 to 49.35 million to cover incremental costs is expected to equalize the cost of electricity generation from the hybrid compared to the pure CCGT. The baseline investment costs for the hybrid will be borne by an Independent Power Producer (IPP). This Mexico project is one of four similar projects in the world to be supported by GEF as part of a program to accelerate cost reduction and commercial adoption of large-scale non-carbon emitting generation technologies. The main global benefits of the project are: (a) the demonstration of operational viability of hybrid solar thermal power generation in Mexico, (b) contribution to accelerated market penetration of large-scale backstop power generation technologies; and (c) reduction of greenhouse gas emissions from power generation. The carbon savings of the project are estimated at 199,589 tC over the 25-year economic life of the plant.