Identifying and Addressing Drivers and Barriers to Construct Solar Thermal Power Plant in Mongolia A dissertation submitted to Murdoch University for the degree of Master of Science in Renewable Energy Buyanjargal Ser-Od B.Eng, Mongolian University of Science and Technology School of Engineering and Energy Murdoch University 2013 DECLARATION I declare that this dissertation is a true account of my research undertaken for identifying and addressing drivers and barriers for constructing solar thermal power plant in Gobi region of Mongolia. All extracts of the work of others are appropriately acknowledged. The main content of this work has not been previously submitted for a degree at any tertiary education institution. Buyanjargal Ser-Od Page | ii ABSTRACT Having an adequate energy supply is a crucial issue in encouraging and maintaining the sustainable economic growth of the country. Due to the development of mining activities, the expected electricity demand of the Gobi region of Mongolia is expected to reach 650 MW in 2020. Thus, it will be necessary to construct a number of new power plants in the Gobi region of Mongolia because the current installed capacity cannot meet the current peak load and the amount of electricity imported from Russia is constantly increasing. This dissertation focuses on identifying the feasibility of constructing solar thermal power plants in the Gobi region of Mongolia. Moreover, drivers and barriers for constructing solar thermal power plants and possible mitigation measures are discussed in this thesis. The current situation and future perspectives of Mongolian energy sector, Mongolian renewable energy resources and its applications, and development of solar thermal power technology in the world are studied and reviewed within the scope of work of this thesis. Technical and economic analysis on parabolic trough CSP and central receiver CSP are undertaken using the System Advisor Model software for performing preliminary analysis of varies renewable energy technologies. According to the findings of these studies, a 50 MW parabolic trough CSP with 2 hours of thermal energy storage is considered the most suitable option in Gobi Page | iii region of Mongolia in terms of the maturity and economic characteristics in comparison with other CSP technologies. In order to implement a 50MW parabolic trough CSP in Mongolia, it is necessary to consider drivers and barriers, and mitigation measures for dealing with the barriers. An abundant solar resource in the Gobi region of Mongolia, renewable energy legality and policy, and the necessity of constructing new power plants in the Gobi region are considered as the main drivers. On the other hand, there are barriers for implementing CSP such as high initial capital cost, and the lack of professional workers. However, it is possible to mitigate these barriers by using Clean Development Mechanism funding formulated in the Kyoto Protocol and preparation of professional workers by vocational training offered by TAFE colleges and universities. Moreover, there are also further potential cost reductions in CSP technologies expected through technological and efficiency improvement measures. Page | iv Contents DECLARATION ............................................................................................................... ii ABSTRACT .................................................................................................................... iii LIST OF FIGURES ........................................................................................................ vii LIST OF TABLES .......................................................................................................... viii ACKNOWLEDGEMENT .................................................................................................. 1 1. INTRODUCTION ......................................................................................................... 2 1.1. Background ........................................................................................................... 2 1.2. Research focus ..................................................................................................... 4 1.3. Document outline .................................................................................................. 5 1.4. Methodology ......................................................................................................... 5 2. THE MONGOLIAN ENERGY SECTOR AND THE NECESSITY FOR NEW POWER PLANTS ............................................................................................................ 7 2.1. Country profile ....................................................................................................... 7 2.1.1. Location .......................................................................................................... 7 2.1.2. Population ...................................................................................................... 9 2.1.3. Governance and Administrative structure ....................................................... 9 2.1.4. Climate ......................................................................................................... 10 2.1.5. Economy ...................................................................................................... 11 2.2. Central Energy System ....................................................................................... 13 2.2.1. General ......................................................................................................... 13 2.2.2. CES and Energy markets ............................................................................. 15 2.2.3. CES’s power plants and electricity generation .............................................. 17 2.2.4. Transmission grid of CES ............................................................................. 21 2.3. Future perspective of energy demand and supply .............................................. 22 2.3.1. Expected mining activities and their energy demand .................................... 22 2.3.2. Current possibility of CES, necessity of new power plants ........................... 25 3. DEVELOPMENT OF RENEWABLE ENERGY IN MONGOLIA ................................. 28 3.1. General ............................................................................................................... 28 3.2. Legal environment of the renewable energy ....................................................... 28 3.3. Renewable energy resources and its utilization .................................................. 32 3.3.1. Solar energy resource and its utilization ....................................................... 32 3.3.2. Wind energy resource, and its utilization ...................................................... 34 3.3.3. Hydropower resource, and its utilization ....................................................... 38 3.3.4. Geothermal energy resource, and its utilization ........................................... 39 4. DEVELOPMENT OF CONCENTRATING SOLAR THERMAL POWER PLANT ....... 41 4.1. Brief history of CSP technology .......................................................................... 41 Page | v 4.2. CSP technology .................................................................................................. 42 4.2.1. Parabolic trough ........................................................................................... 43 4.2.2. Central Receiver or Solar Tower .................................................................. 45 4.2.3. Linear Fresnel Reflector ............................................................................... 46 4.2.4. Parabolic Dish .............................................................................................. 46 4.3. Thermal energy storage ...................................................................................... 47 4.4. Comparison of CSP technologies ....................................................................... 49 4.4. Current situation and future prospects of CSP technologies ............................... 50 5. FEASIBILITY TO CONSTRUCT CSP PLANT IN MONGOLIA .................................. 57 5.1. General ............................................................................................................... 57 5.2. Solar Resource Assessment of the proposed site .............................................. 58 5.2.1. Site selection ................................................................................................ 58 5.2.2. Solar Resource ............................................................................................. 59 5.3. Technical and Economic model for evaluating CSP............................................ 62 5.3.1. RETScreen software .................................................................................... 63 5.3.2. System Advisor Model .................................................................................. 64 5.4. Technical and Economic analysis of CSP technologies ...................................... 65 5.4.1. Parabolic trough CSP ................................................................................... 65 5.4.2. Solar Tower CSP .......................................................................................... 69 5.5. Selection of the best technology for Mongolia ..................................................... 72 6. DRIVERS AND BARRIERS FOR CONSTRUCTING CSP IN MONGOLIA ............... 75