The Assessment of potential and promotion of new generation of renewable technologies SOLAR THERMAL ELECTRIC PLANTS Dr. Luis Crespo President of ESTELA

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 The essential role of STE in the Electricity Generation Mix

 High potential, , storage and hybridization features and cost reduction projections, make essential the role for STE in the future “Generation Mix” in countries with enough solar resource  Other R.E. technologies might appear cheaper in the short term, but their lower capacity factor and their fluent character have consequences on the system costs, transmission requirements and fossil back up needs

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Solar Thermal Electricity Plants:

A success story in Spain based in three main pillars:

 Continuous support to R&D

 Favorable and effective regulatory environment in spite of the recent events

 Capacity and commitment of the industrial companies

Almeria Solar Platform (PSA) 1978-2011

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Ciudad Real

Alicante Badajoz Granada

Seville Almeria Malaga

In Operation (17) Under advanced construction phase (13)

Información actualizada: www.protermosolar.com

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 SOLNOVA 1, 3 and 4 & PS 10 and PS 20

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 ANDASOL 1 and ANDASOL 2

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 1

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 CASA DEL ANGEL

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 GEMASOLAR, Fuentes de Andalucía

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Breakdown of the Spanish Plants

Total: 2423 MW (In operation by the end of 2013)

94%

38 % 62 % ~ Relative to power installed

2% Tower 3% Stirling 1% Fresnel

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Forecast in European countries by 2020 (NAP’s)

France 540 MW

Italy 600 MW Spain Portugal 5079 MW 500 MW 250 MW

Cyprus 75 MW

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Operational plants in the USA

Kimberlina 5 MW Bakersfild,

Nevada Solar One 64 MW Boulder City,

Sierra Sun Tower 5 MW Lancaster, California

ISCC 75 MW equiv. Martin County Florida

SEGS Plants (Total 354 MW) Kramer Junt. / Harper Lake, California

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Prospects for the USA

 Increased awareness in Utilities, Policy Makers and Investors  Tax credits have been extended till 2017  Additional support (Stimulus Bill, Treasury Grants - 30% if starting in 2010 - and Loan Guaranties - $6B -, Renewable Portfolio Standard)  Many PPA’s signed (8.000 MW) with the SW Utilities  Some has started the construction already. Delays due to financial issues and to the complex and lengthy permit processes at State and Federal levels  The number of projects on tower and trough concepts are similar

 Power levels much higher than in Spain (>200 MW for Parabolic Trough and 100 MW for Towers)

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 First Projects in the MENA Region

150 MW ISCC at Hassi R’Mel 146 MW ISCC at Kuraymat

470 MW ISCC at Ain Beni Mathar 100 MW in Abu Dhabi

Several countries have announced ambitious plans that could be financed under the PSM schemes + concessional WB loans ($750M)

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 THE MSP & CONCEPT

90 % of the world electricity consumption can be supplied from STE plants. The total surface would be 300x300 km2 distributed among 10.000 sites in the desert areas of the earth. 3000 km Transmission using HVDC lines at 3000 km distance will have losses < 10%

The little square shows the required area in the Sahara EU25 desert to supply all the European electricity needs

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Announced Plans in the MENA Region

Morocco: 2 000 MW by 2020 Algeria: 4 ISCCs similar to Hassi R‘Mel Tunesia: 225 MW by 2016 Libya: 1 000 MW renewables by 2015 Egypt: 20% renewables by 2020 Sudan: 2 000 MW announced Syria: CSP under investigation : 1 000 MW by 2015 Jordan: 300-600 MW by 2020 Saudi Arabia: CSP under investigation Iran: RFP issued for 1st ISCC, 17MW solar share Kuwait: CSP under consideration UAE: 1 000 MW by 2020 Oman: 100 MW IPP, bidding start end of 2010 Jemen: CSP under consideration

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Prospects in other regions

INDIA  There is a tremendous need for additional power. Ambitious National Solar Mission is being planned (1.100 MW by 2013 and 20 GW by 2022) but the breakdown between PV and STE has not been yet established  First 7 companies selected for a 479 MW in the first phase. The plants range from 29 to 100 MW each. CHINA  Plans for 300 MW in 2015 with own technology  International references might accelerate their plans AUSTRALIA  Aim 25% of by 2050  Clean Energy Initiative / Solar Flagships Program - 1000 MW solar power - First call for 400 MW (PV + CSP) Promoters shortlisted - Funding through taxable grant payments (30%) + state aids

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 FORECAST BY COUNTRIES 2009-2014

The long and dark solar thermal electric night

SOURCE: “Global Markets and Strategies: 2010-2025,” IHS Emerging Energy Research, April 2010

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 STE ROADMAP Different technologies: different performances and potential

System designs: - Thermodynamic Cycles - Cooling Types - Hybridization - Land requirements Parabolic Trough Central Receiver Systems Working fluids: - Temperature - Efficiency - Storage

Parabolic dishes wit Stirling motors LCOE Fresnel linear reflectors

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 COST REDUCTION IS THE MAIN ISSUE

Fuente ESTELA / ATKearney

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Who has supported STE deployment in Spain until now?

Estimated amount of FIT for STE in Spain in the year 2013: 1600 M€ In 2020 the yearly amount of FIT would be close to 4000 M€

EIB has provided 547 M€ of loans on commercial bases - along with other banks - to several STE plants in Spain corresponding to a total investment of around 6000 M€

The E.U is supporting R&D in STE at an average of around 1 M€ per year while the STE budget of the Spanish Research Centers is around 8 M€ per year. Private companies are doing an additional important efforts in order to increase efficiency and reducing costs

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Employment (Reference: 50 MW STE plant with 7 hours of storage)

Among all RE technologies STE has the greatest positive impact on employment  CIEMAT Study: I/O Methodology: 300 M€ investment + STE Breakdown activities result in a labor force of 5000 direct jobs, 1 year equivalent  PROTERMOSOLAR internal survey: Close to 3000 direct jobs 1 year equivalent per plant have been identified through a direct enquiry with several Spanish promoters. Nevertheless the complete added value chain was not fully covered  The national local added value increased from 45% in 2008 to 75% in 2010 in the recent deployment of STE plants in Spain  The Assessment to the World Bank on the local manufacturing potential for the MENA region - carried out by E&Y and Fraunhofer ISI - shows very high potential and benefits of STE deployment on the regional economic development

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Life Cycle Environmental Impacts of STE Plants (Reference 50 MW STE plant with 7 hours of storage)

Methodology life cycle assessment (LCA), according to ISO 14040-43. The energy which is required construct, operate, and dismantle a STE power plant correspond to an energy payback time of around 12 months Reference: CIEMAT

Raw materials consumption: 10000 t of concrete, 15000 t of steel, 6000 t of glass and 250 t of copper Water Consumption - Equivalent to a conventional Thermal Power Plant (500.000 m3/year – aprox. 2,7 l/kWh - for a 50 MW plant) - Dry cooling is possible although the efficiency will be slightly less

Emissions: GHG avoided emissions are estimated in 150000 t/year as compared to a plant

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 High Potential Dispatchable Competive

Sinergy Regional Industry - R&D development

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011 Thank you for your attention!

www.estelasolar.eu

ITRE Workshop: The Assessment of potential and promotion of new generation of renewable technologies, March 2011