NATIONAL RENEWABLE ENERGY CENTRESOLAR THERMAL ENERGY

CONCENTRATED SOLAR THERMAL POWER (CSTP)CONCENTRATED SOLAR THERMAL POWER (CSTP) The road towards grid parity

Dr Marcelino Sánchezmsanchez @cener.com

CSTP Technologies: The road towards grid parity

Table of Contents

IntroductionCSTP Barriers

0102

Expected trends and evolution on CSTPNew and alternative trendsMid and long term R&D needs

030405 Mid and long term R&D needs

Conclusions0506

2

01 INTRODUCTION Relationship Between R&D Investment and Technology Development

pmen

tgy

dev

elop

Tech

nolo

gT

3

01 INTRODUCTION Relationship Between R&D Investment and Technology Development

4

01 INTRODUCTION Relationship Between R&D Investment and Technology Development

5

01 INTRODUCTION Boom of electricity demandby growth of population and economy

Electricity Generation All Countries

45003000

CSP can not meet the energy

3000

3500

4000

on [T

Wh/

a] PhotovoltaicsWindWave / TidalGeothermal

3000 TWh/y2 – 3

xmore

2500 TWh electricity

meet the energy challenge

without R&D investment

1500

2000

2500

icity

Pro

duct

io GeothermalBiomassHydropowerCSP PlantsOil / Gas

more than now

from CSP

100 billion

investment

0

500

1000

Ele

ctr Oil / Gas

CoalNuclear

100 billion m³ H2O

cogenerationDeficit:0

2000 2010 2020 2030 2040 2050Year

Deficit: 200 bil. m³

Study by DLR: www.dlr.de/tt/med-csp

6

01 INTRODUCTION Summary

CSTP technologies are being developed at the same time as they contribute to theelectricity market share.

Today’s CSTP Commercial power plants are mainly based on the experiences ofy p p y pthe 70s and 80s.

Most of R&D Developments in the 80s and 90s are still waiting to be applied.

During the last 30 years, the solar thermal community has been a very small group.

The new scenario has brought many new players with different backgrounds(technical economical and others )(technical, economical, and others…)

Tomorrow’s CSTP might be completely different from today’s concepts.

REMEMBERREMEMBERThe challenge is to produce electricity from Concentrating Solar Thermal Technologies at a competitive cost.

7

02 CSTP BARRIERS CSTP Technology Barriers

CSTP Barriers:

1. Technology

2. Economics

3. Market

4. Legal aspects

8

02 CSTP BARRIERS CSTP Technology Barriers

1. TECHNOLOGY:

Good solar resource on siteGood solar resource on site

Grid proximity

Water Availability

o Water consumption between 3-4 l/kWh mainly due to wet cooling towerrequirements.q

o Water consumption can be reduced drastically by using air cooling systems.

9

02 CSTP BARRIERS CSTP Economics Barriers

2. ECONOMICS

Although the solar resource is free today CSTP plants need a high capitalAlthough the solar resource is free, today CSTP plants need a high capitalcost investment. This initial investment together with the risk associated toa “new” technology produces an increase in the final cost of electricity.

The necessary innovation needed to reduce costs has been many timesstopped/delayed due to the technological risk and its economic impact onthe project financing. To mitigate this effect the Spanish Industry, CENERand other Spanish R&D institutions are working together with AENOR theand other Spanish R&D institutions are working together with AENOR, theSpanish normalization entity, to create standards that will facilitate theprocess of implementing new developments in commercial power plants.

COST i h l h h VALUE f ECOST is a parameter that cannot properly show the VALUE of Energy.

10

02 CSTP BARRIERS CSTP Market Barriers

3. MARKET BARRIERS

Energy market is very complex: it is linked to economy and to political andEnergy market is very complex: it is linked to economy and to political andprivate interest.

Different methodologies as ExternE evaluate the external cost of energyincluding social and environmental aspects.

It is necessary today to establish a framework of incentives that facilitatesthe market penetration of CSTP technologies and finally contributes tothe market penetration of CSTP technologies and finally contributes tohave an energy market more complete, diversified and fair.

Source: http://www.externe.info/methodology.html

11

02 CSTP BARRIERS CSTP Legal barriers

4. LEGAL BARRIERS AND INCENTIVES

Spain is today leader in CSTP thanks to a legal framework favorable toSpain is today leader in CSTP thanks to a legal framework favorable tothese technologies. This legal framework has been the seed that wasneeded from CSTP to start thriving worldwide.

The premium limitations on plant capacity and total capacity had a stronginfluence on the kind of plants that have been implemented in Spain.

India could learn from Spanish experience to facilitate CSTP market entryIndia could learn from Spanish experience to facilitate CSTP market entry,taking into account both successes and blunders.

It is crucial to establish a stable legal framework, which providesfid h i d ll k lconfidence to the investors and to all market players

12

Installed capacity worldwide by technology03 EXPECTED TRENDS AND EVOLUTION ON CSP

Source: http://www.protermosolar.com

13

Expected trends and evolution on CSTP03 EXPECTED TRENDS AND EVOLUTION ON CSP

FLUIDSo High Temperature Working Fluids DSG or molten salts generation (PT) gases (CR) room-temperature ionic

AWAITED BREAKTHROUGHS:

o High Temperature Working Fluids. DSG or molten salts generation (PT), gases (CR), room-temperature ionicliquids and lithium salts, nanotechnology additives in advanced HTF.

HEAT COLLECTION ELEMENT (PT)o Increased dimensions, different characteristics in zones working at different temperatures …. High temperature

durable selective coatings…etc.

MIRROR ASSEMBLYo Spectrally selective mirrors or lenses, new reflective materials (polymers or composite), thin-film protection layers

for reflectors dust-repellent mirrorsfor reflectors, dust-repellent mirrors,…

THERMAL STORAGEo Phase Change Materials (PCM), thermo chemical storage/release cycles, thermocline storage tank,…

POWER BLOCKo Heat engines specifically designed for integration in a CSTP system, “solarized” gas turbines or combined

cycles,…

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03 EXPECTED TRENDS AND EVOLUTION ON CSP System efficiency

LF PT CR PDSystem efficiency 2010

100% 100% 100% 100%

82%100%

42%

58% 62%

82%

34%

48%53%

62%

22%40%

60%

80%

11%16% 18% 22%

0%

20%

LF PT CR PDAnnual solar energy on the aperture Optical efficiency

Efficiency increase 20153-5% 7-9% 4-6% 0.5-6%

Solar‐to‐thermal efficiency Overall gross efficiency

Efficiency increase 2020

13-20% 10-14% 6-8% 10-15%

15

03 EXPECTED TRENDS AND EVOLUTION ON CSP Levelized Cost of Electricity

PD are the most expensive now, but havethe best potential for cost reduction.

Process automation and massproduction may reduce costs by asmuch as 40% for the mirrors and 55%for the Stirling engines.g g

PT are now competitive with other renewablealternatives.

About 0.17 y 0.18 €/kWh in Spain andas low as 0.10 €/kWh in sites withhigher direct radiation,

Expected to compete with conventionalthermal power plants by 2020.

16

03 EXPECTED TRENDS AND EVOLUTION OF CSTP Energy cost, value and price

Most studies about CSTP evolution are focused in COST, but Solar Energy is worth more than its cost.

Secured energy supply is a must (current situation in Libya is affecting world energy market andSecured energy supply is a must (current situation in Libya is affecting world energy market and prices).

Investing in CSTP means investing in the development of our own countryo Creating Local Jobso Creating Local Jobs,o Creating Local Industries able to become worldwide leaders.

CSTP can contribute to an improvement of grid management thanks to its capability to use thermal storagestorage.

CSTP is essential if we want to shift our development model to a more sustainable one, not only in environmental terms but also in social and economic ones.

CSTP can deploy electricity in centralized markets as well as decentralized markets covering a wide range of different options according to local needs.

17

04 NEW AND ALTERNATIVE TRENDS CSTP, New and alternative trends

DESERTEC INITIATIVEDESERTEC INITIATIVE

The energy supply mixes could have a renewable energy share up to 100% gy pp y gy pif a supply of solar power from outside Europe based in commercial CSTP technology is assumed.

Source: The Roadmap 2050 project ( www.roadmap2050.eu)

18

D t li d E S tDecentralized Energy Systems 04 NEW AND ALTERNATIVE TRENDS

Decentralized Energy (DE) can reduce costs for both electricity consumers and electricity producers.

Decentralized renewable energy systems can deliver substantial economic and environmental gy ybenefits

Off-grid power is critical for developing countries such as India because of the country’s weak transmission infrastructure and the high costs of connecting villages to new transmission linesg g g

o Decentralized generation does present a solution for rural communities in India

o Decentralized CHP has an strong potential in rural areas.

Decentralized CSTP systems can provide also a solution for decentralized needs. However it is necessary to establish policies that help the implementation of these technological optionsimplementation of these technological options.

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05 MID AND LONG TERM R&D NEEDS European FP7 R&D Priorities

Research, development and testing of CSTP technologies to improve:Efficiency

Area: Concentrated Solar Power

o Efficiency,o Durability,o Reliabilityo Environmental profile (including cooling aspects)

Research may covero New materials,o Innovative coatings,o Nanotechnologyo Nanotechnology.o Improvements in the environmental profile are expected, especially in the need for cooling water.

Expected impact: Improvements in the performance of key components, in particular athigh temperatures, should lead to a substantial reduction in the cost of electricitygeneration from CSTP.

20

Basic Science Challenges, Opportunities, and Research Needs

05 MID AND LONG TERM R&D NEEDS

Specific Heat Engines development

Area: Concentrated Solar Power

Solar Thermoelectric Power Generators

Thermoelectric Materials

Concentrated Solar Thermochemical Processes(Hydrogen production)

Thermal Storage Materials

New Experimental And Theoretical Tools ToEnable Transformational ResearchEnable Transformational Research

Source: Basic Research Needs for Solar Energy Utilization

21

Mid Term Future Developments05 MID AND LONG TERM R&D NEEDS

K F tStorage developments

Materials developments (Durability)

Key Factor

Hybridization issues

Others:

o New cycles

o New applications (Polygeneration, heat, power and drinkable water)

22

05 MID AND LONG TERM R&D Mid Term Future Developments05 MID AND LONG TERM R&D NEEDS

Storage medium term future developments:

23

N/23

Long term future developments05 MID AND LONG TERM R&D NEEDS

Solar Fuels production; Hydrogen generation:

H

Syngas

Shift-Reactor+

Separation

H2

Combined-Cycle

Fuel Cellsfor

Power & TransportationSolar

H2O

yPower GenerationReactor

2Petcoke

24

06 CONCLUSIONS Conclusions (I/III)

Several CSTP technologies are today commercially available at different stage ofmaturity.

There is not a single way to reach grid parity for CSTP, but many:

Cost reduction is a must, but also…Implementation of favorable policiesImplementation of favorable policies.Specific R&D programs.A National Energy Strategy .

F t CSTP i ht b l t l diff t f t d ’ tFuture CSTP might be completely different from today’s concepts.

Although during commercialization process of CSTP (2005-2010) cost reduction hasbeen achieved in some key components (mirrors, structures), additional significant costbee ac e ed so e ey co po e s ( o s, s uc u es), add o a s g ca cosreduction and efficiency improvements are expected in the near future (2011-2020).

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06 CONCLUSIONS Conclusions (II/III)

CSTP has a great potential of cost reduction.

o R&D investment in CSTP is still small compared to other energy resources.

o Up to 54% of this cost reduction will come from technological advance (S&L analysis).

o Current commercial CSTP plants are mainly based in the experiences of the 70s & 80s (Trough Oil).

o During the last 30 years, solar thermal community has been a very small group. The new scenario hasbrought many new players with different backgrounds (technical, economic, and others...).

o CSTP is expected to reach a significant “near term”cost reduction by applying today’s emerging concepts.

Trough [DSG, molten salts],Tower [superheated steam, molten salts, multi-tower],Dishes [free piston].

Additional cost reduction could come from future developments (CSTP hydrogenproduction) .

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06 CONCLUSIONS Conclusions (III/III)

CSTP technology is still very young as a commercial choice and represent a goodopportunity for energy development in India.

High CSTP potential in India is mainly based in two factsHigh level of solar radiation available.High growth on energy demand.

CSTP development and deployment for India… to think… and discuss…CSTP Plants are modular, able to be used as decentralized energy systems and/or centralizedenergy systems,Many plant sizes and technological options are availableMany plant sizes and technological options are available,What is the best approach for applying CSTP to India?

There is not a single answer, but we are willing to help with our Spanishexperience in CSTP from R&D to commercializationexperience in CSTP from R&D to commercialization

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