SOLAR THERMAL ELECTRICITY

KNOWRES EXPERTS MEETING Perpignan 29 March 2016

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
What is Concentrated Solar Power (CSP) or Solar Thermal Electricity (STE) technology?

4 types of technologies:

Parabolic Troughs
Tower
Linear Fresnel Reflectors
Parabolic Dishes

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

What is the Concentrated Solar Power (CSP) or Solar Thermal Electricity (STE) technolo

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

WHAT IS ESTELA?
ESTELA is the Euro-Mediterranean CSP Industry Association supporting
the deployment of the solar thermal electricity industry for green power
in Europe and abroad, especially in the Mediterranean region

ESTELA involves and is open to all main actors in the Euro-Med zone:
promoters, developers, manufacturers, utilities, engineering companies,
research institutions

ESTELA is building a global cooperation platform with AUSTELA,

SASTELA, MESIA, CSP Alliance as well as the Chinese industry to bundle
forces for addressing political target groups. The name of this platform
will be STELA-World
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
INDUSTRY, INNOVATION AND RESEARCH
ESTELA actively participates in 5 EU projects (EU-Solaris, STAGE-STE, SFERA II,
KNOWRES and Solar CV) with the main role to be the interface between
industry and R&I.

Most recently, in the framework the SET-Plan, EERA, ESTELA and EUTurbines
presented together to EU member states their most important targets
related to CSP.

These targets were endorsed by Member states and EU services will now
work closer with ESTELA to support the implementation of these targets.

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

 Current market situation accross the

Source:

Solar Thermal Electricity: Global Outlook 2016,

ESTELA, Greenpeace, SolarPACES

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

The CSP forecast development worldwide

Source: IEA
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
 WHERE ARE THE KEY CHALLENGES?

1) Getting political investment drivers to look at the

difference between CSP costs and CSP value

2) Implementing focused CSP programs that:

reveal its undisputable value according to various
needs
brings market volume and so CSP costs rapidly further
down.

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

TWO STRATEGIC TARGETS (1/2)
Short-term: More than 40 % cost reduction by 2020 (from 2013) translating into
a supply price* of < 10 c / kWh for a DNI level of 2050 kWh/m2/year
(conditions in Southern Europe) by developing new schemes of plants and/or
cycles, with a first demonstrator by 2020.
* provided that 30 GW STE plants are installed at that time at world level

Motivation:
in the narrow context of electricity markets, significant narrowing of the cost
gap between STE plans and gas combined-cycles;
macro-economic benefits to EU economy not only in the countries hosting the
STE plants.
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
 ONSHORE WIND AND PV HAVE REACHED
COMPETITIVE COST LEVELS. SO WHAT?
14 c/kWh
Maturity
Current
STE
5 GW
gap Value

6 c/kWh
Wind
400 GW
PV
200 GW

The PPAs for the two recently awarded STE plants in Morocco Noor 2 & 3 (200 MW PT & 150 MW T) were
15% lower than the previous one for Noor 1 awarded 2 years ago.
A 110 MW STE plant with 17,5 hours of storage, partly hybridized with PV, was recently selected in Chile with
a PPA of $110/MWh, in competition with all other generation technologies including gas-combined cycle.
The tariff for the current Expedited round in South Africa is close to 20% less than the previous one for
Round 3 established 18 months ago.

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

 Required value for a 25-year PPA without escalation for a standard 150
MW 5-hour storage STE plant without any kind of financial public support

Stars reflect the PPA harmonized disccounting

the differences with the standard plant values
of real projects in different countries

Source ESTELA
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
TWO STRATEGIC TARGETS (2/2)
Longer-term: Develop the next generation of STE technology by 2025 via
technological research and demonstration projects/ initiatives in order to raise
current concepts covering key aspects of the STE technology linked to the
achievement of higher temperatures at the receiver from TRL 4/5 to 7/8.

Motivation:
An extended cooperation between EU research centers and industry is
needed to accelerate the incremental and disruptive innovations and bring
them to markets (higher TRLs).
Most of research lines established in ESTELAs Strategic Research Agenda
(2012) are fully compatible with this target and will also contribute to
increasing efficiency and reducing costs.
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
 NON-TECHNOLOGICAL PREREQUISITES TO
MAJOR COST REDUCTIONS
Economies of scale due to market volume
Solid risk finance (investor protection)
Fostering international cooperation
In practice, one or more Member States, supported by the EC services, should initiate a
CSP deployment program (embedded in a reliable investment environment). Motivation:
Adjusting the EU generation mix towards a CO2 free power system in 2050 to a better
balance between non-dispatchable and dispatchable renewables in the system (TSO
needs!)
Optimizing the use of renewables via the cooperation mechanisms (RES Dir 2009)
across EU in order to reach the RES 2020 targets for Member States lacking abundant
and/or flexible renewables resources.
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Technical
Typical production in a summer day
https://demanda.ree.es/demanda.html

Important to notice:
Although the installed PV power is 4,7 GW its contribution in sunny hours is far
below than double the CSP one

Hourly production for past days

can be easily tracked with the calendar
and the pointer.
The extended daily production can be
also seen when pointing on the STE These two
portion of the generation structure hills show
how reliable is
STE production in sunny days
After sunset the 18 STE plants
with storage were providing 700
MW until 5:00 am
Technical
YEARLY CSP GENERATION IN SPAIN 2009-2015
Monthly production
record 889 GWh

Yearly production
record in 2015:
5.113 GWh

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WHAT HAPPENS WHEN INTERMITTENT RES REACH A HIGH PENETRATION
IN A POWER SYSTEM

They do account for savings

of fossil fuels, but they do
not account for capacity.

In countries with
quick increasing
This make system capacity needs

operation more costly or

unreliable.

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

What does operational value means:
Operational value represents the avoided costs of conventional generation at their
respective dispatching times along with related ancillary services costs, such as operating
reserve requirements. Savings on emission costs are also taken into account.

What does capacity value means:

Capacity value reflects the ability to avoid the costs of building new conventional
generation in response to growing energy demands or plant retirements

Flexible products for different kind of network services - as requested by

TSOs - need to be properly defined to reflect this added value and a market
segment defined where RES would compete.

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THE GOOD NEWS: CSP CAN AND WILL HELP DEPLOY CHEAP VARIABLE RES
Examples of existing co-location of plants

Andasol plants (150 MW) and

wind parks (200 MW) in the
province of Granada, Spain

Dispatching CSP at the evening peak to

complement PV plants will increase
significantly the operational and capacity
value of hybrid STE/PV plants

10 MW STE plant co-located with 1 MW PV

in the Solucar complex, Seville, Spain
 CSP is - and will continue to be - the
necessary choice when developing a
power system in sunny countries in which
new capacities are needed.

CSP should be the preferred choice for

policy makers that unlike investors should
duly integrate in their decision process all
the impacts technical and economical of
this technology.

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

Thank you for your attention
Marcel.Bial@estelasolar.org
www.estelasolar.org
Comparison between premiums and returns to the economy of a STE deployment progra

+ Industrial development
+ Equilibrating the mix
+ Reinforcement of the grid
+ Attraction of foreigner investment Unemployment subsidies

+ Regional economical convergence

Savings in CO2 rights

Supports
Supporting STE was a
wise decision for Spain and
it will be so in all countries
Savings from replacing
imported fossil fuels
Fiscal contribution
(Social Security, Corporate, Personal
and Local Taxes,)

Source: IEA Contribution to GDP

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

 Jobs in a typical STE plant in Spain (50 MW with sotrage)

2214 one-year equivalent jobs on the whole value

chain
(promotion, engineering, comp. manufact.,&
construction)
Approx. 500 people during construction phase at
the site (2 yrs)
47 direct jobs for operation and related services
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
Industry localisation in Spain for Solar Field components
Absorber tubes

Curved mirrors

Prerequisite:
Stable program of some
few hundred MW per year
Collector strucuture
EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION
Industry localization in Spain for solar field components

Absorber tubes

Curved mirrors

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Collector
Other direct effects on Industry
Reorientation of other mature industries:
- Construction, civil works
- Engineering of conventional power plants
- Electricity Transmission Infrastructures
- Galvanizers,
Reinforcement of some industry sectors:
- Piping and tanks
- Heat exchangers
- Boilers
- Cabling
- Telecommunication and control
Huge impact on auxiliary sectors
- Cleaning, environmentalists, labs,
- Road transport
- Training,

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION

Enlargement of suppliers subsidiaries in the country: Promotion, Maintenance,
 Who is
THE EUROPEAN SOLAR
THERMAL ELECTRICITY
ASSOCIATION ?

EUROPEAN SOLAR THERMAL ELECTRICITY ASSOCIATION