Concentrating Solar Power (CSP) - TU Dresden€¦ · Concentrating Solar Power (CSP) – Cornerstone of Future Energy Generation? Solar Thermal Power - Introduction Concentrating

Concentrating Solar Power (CSP)Cornerstone of Future Energy Generation?

ENERDAY 2009, April 3rd 2009

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Slide 2ENERDAY 2009, April 3rd 2009

Concentrating Solar Power (CSP) – Cornerstone of Future Energy Generation?

AGENDA

LAHMEYER INTERNATIONAL

INTRODUCTION ON CSP

TECHNOLOGY

MARKETS

BENEFITS AND CHALLENGES

POLICY

CONCLUSION

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Lahmeyer International

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Scope of Services

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Experiences in 165 Countries

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AGENDA


INTRODUCTION ON CSP

TECHNOLOGY

MARKETS


POLICY

CONCLUSION

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Solar Thermal Power - Introduction

Concentrating Solar Power (CSP) plants are thermal power plantsHeat from converted solar radiation is used to generate electricity

Operational experience of more than 20 years

Suitable conditions around the global sunbelt

About 11 GW are currently under development in about 80 projects

Current core markets: Spain and USA

Operation & Construction

Planning & Development

Demonstration

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Solar Resources330032003100300029002800270026002500240023002200210020001900180017001600150014001300120011001000900800700600500400300200100

0kWh/m²*a

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Site Selection – Top Down Approach

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AGENDA


INTRODUCTION ON CSP

TECHNOLOGY

MARKETS


POLICY

CONCLUSION

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Working principle of a CSP Power Plant

Mirrors concentrate the sun irradiation in a focus

A heat transfer fluid (HTF) is heated up in a receiver and pumped to a heat exchanger

Linked to a conventional team cycle

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Technology Concepts Solar TowerSystems

Parabolic TroughSystems

SolarTowerSystems

DishStirlingSystems

LinearFresnelSystems

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Parabolic Trough – 50 MW, 7.5h Storage

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LOW

HIGH

HIGH

LOW

Perc

eive

d R

isk

Bankability

CSP project risks by Technology

Dish Sterling

Solar Tower

Linear Fresnel

Parabolic Trough

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AGENDA

INTRODUCTION ON CSP

TECHNOLOGY

MARKETS


POLICY

IMPLEMENTATION

CONCLUSION

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Commercial CSP Plants - Overview

Commercial CSP plants in operationSEGS I-IX, USA 354 MW since 1985

Nevada Solar One, USA 64 MW since 2007

PS-10, ES 11 MW since 2007

APS Saguaro, USA 1 MW since 2005

ANDASOL 1, ES 50 MW since 2008

Liddell Power Station, AU 1 MW (solar - coal hybrid) since 2004

Commercial CSP plants going into operation soon

PS-20, ES 20 MW 2008 / 2009

ANDASOL 2, ES 50 MW 2009

Commercial CSP plants under construction or just before ground-breaking:Solnova 1-3, Palma del Río 1, Hassi R‘Mel, Ain Beni Mathar, La Risca 1, Kuraymat, Puertollano, Extresol 1,…

More than 80 CSP plants under development

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Installed Capacity Snapshot

Installed Commercial Capacity as of 2008

USA87%

Europe13% 479 MW

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Expected Installed Capacity in 2015

Installed Commercial Capacity expeced in 2015

Middle East 10%

Africa 4%

Asia 3%

Europe 37%

Middle & South America 6%

North America 40%

6,400 MW

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Utilities and IPP Owners

Utility / IPP Countries

Acciona Solar ES, USA

Iberdrola ES, Egypt

ENEL ES, ITL

EDP ES

Endesa ES

Eskom SA

ADFEC UAE

SAMCA ES

FPL Energy USA

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New Approaches of Project Valuation

Conventional Project

Solar Thermal ProjectValue

Market line

Risk driverFuel prices

Environmental costs

Risk

Benchmark

Value driverPortfolio effect

Options value

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AGENDA


INTRODUCTION ON CSP

TECHNOLOGY

MARKETS

BENEFITS & CHALLENGES

POLICY

CONCLUSION

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Rationale for Solar Thermal Power Use

Locally available renewable & secure energy resource

Reliable source of energy high dispatchability

Adjustable towards load & tariff scheme high value electricity

Serves as hedge against volatile fuel prices

Very low greenhouse gas emissions

Short developing and construction time of 2-3 years

No additional burden on environment

Creation of a new profitable market

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Plant Assembly and Operation

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Electrical Output and Tariff I

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Electrical Output and Tariff II

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Electrical Output and Tariff III

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Challenges

Reduction of investment costs

Sellers' market on key components

High amount of parasitics mainly through pumping

Limited up-scaling potential

Higher steam temperatures increase turbine efficiency

Direct steam production for better system efficiency

Huge water consumption in terms of wet cooling

Illiquid capital markets

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Cost Reduction Potential

Technology• Efficiency improvement

• New technologies

• Innovative plant concepts

• Plant Assembly & Operation mode

Market• More supplier entering the market• Supplier diversification

Project Development• Multi Contracting

• Supplier diversification

Higher Risk

Mitigation: Joint Venture building

Supply Chain• Higher production volumes

• Standardization

• Supply Chain Management (JIT, JIS)

€

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AGENDA


INTRODUCTION ON CSP

TECHNOLOGY

MARKETS


POLICY

CONCLUSION

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Cornerstones of Success

LOW

HIGH

BANKABLEPROJECTS

HIGH

LOW

SPONSORSUPPORT

GUARANTEES

CONTRACTSTRUCTURE

PROJECT ECONOMICS

Government Support

Market Conditions

NON-BANKABLEPROJECT

Perc

eive

d R

isk

Bankability

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CSP projects & Incentive schemes

HIGHTendering

Obligation

Fiscal

HIGH

BANKABLEPROJECTS

LOW Bankability

NON-BANKABLEPROJECTS

ES

UAE

CLTR

US

Feed-in Tariffs

Perc

eive

d R

isk

LOW

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Example – Feed-in Tariff Requirements in Turkey

Feed in tariff requirementsBase case conditions

25.46

24.48

29.65

28.51

26.40

30.82

29.54

27.54

23.49

22.53 22.04

26.69

25.5424.52

23.73 23.73

25.93

27.4027.21

28.41

20

21

22

23

24

25

26

27

28

29

30

31

32

33

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Maturity [years]

Feed

in ta

riff [

ctEU

R/k

Wh]

PÖYRY 10

LI 10

PÖYRY 13

LI 13

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AGENDA


INTRODUCTION ON CSP

TECHNOLOGY

MARKETS


POLICY

CONCLUSION

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Conclusions

CSP has potential for utility scale energy generation

Generation adaptable towards market

Limited suitability to feed central Europe

Inventive schemes are currently indispensible

Grid parity achievable in short to mid term

Cornerstone of future energy generation?

Depends on your residence!

But definitely another important brick in the wall!

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Thank you for your attention!

Contact Information

Daniel Gudopp

Email: [email protected]

Land line: +49 (0) 6101 55 1916

Fax: +49 (0) 6101 55 2101

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Solar Thermal Power Plants at Kramer Junction, California5 x 30 MW Constructed between 1985 and 1991, still in operation

Solar Electricity Generating Systems (SEGS)

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Operating since 2007: 64 MW Nevada Solar One

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Start of operation in 2008: ANDASOL 1 in Spain

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Thermal Energy Storage – TES

Comes with higher investment costs, but

Enhances power output

Brings down LEC of power generated

State-of-art tanks contains 28,000 tons of molten salt

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Project Participants

SPV

UtilityPurchase agreementDispatch agreement

EQUITY INVESTORSProject SponsorsPassive Equity

Subordinated debt

Gas Supplier

Take or Pay contract

Power BlockSolar Field HTF System BOP

FundsGreen Energy FundsDevelopment Funds

GovernmentConcession ContractLicense Agreement

DEBTCommercial banksDevelopment banks

Capital market

EPC O&M

Civil Works

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Development, Construction & Operation time

Documents

Concentrating Solar Power (CSP) - TU Dresden€¦ · Concentrating Solar Power (CSP) – Cornerstone of Future Energy Generation? Solar Thermal Power - Introduction Concentrating