Dr. Nikolaus BenzDr. Ing. Luis Crespo

CSP Potential

for Europa until

2030

European Solar Thermal Electricity Association

Energy Forum DESERTECApril 2008 Hannover Messe

A European Association built on the basis of the former European Solar Thermal Power Industry Association, « ESTIA »Constituted in June 2007Created to support the emerging European industry for the construction of solar thermoelectric power plants in Europe and abroad, mainly in the Mediterranean region (MENA)Involves all main actors in EuropeIs based in Brussels in EREC house

What’s

ESTELA ?

Industry

Members

of ESTELA

CSP Technologies

Dish Stirling: - Size 25 kW (modular) - few installations operating - applications competing

with PV

Parabolic Trough

Linear Fresnel

Solar Tower

Dish Stirling

Parabolic Trough:- Size: 50 - 200 MW - proven utility scale technology - commercial operation since 1984- preferred technology for new plants in USA/Spain/MENA

Linear Fresnel: - Size 50 - 200 MW - in development

Dish Stirling: - Size 10 - 25 kW (modular) - few installations operating - applications competing

with PV

Solar Tower:- Size: 50 - 100 MW - Demo plants built in 80‘s

- First commercial 10 MW plantin operation in Spain

- New 20 MW almost completed- Larger projects announced

in USA

Provide sustainable, clean and reliable Power from 10 kW to 200 MW

Current and Future Markets

excellent good suitable not suitable

Sour

ce: S

olar

Mill

enni

um A

G, E

rlang

en

Renewable Energy goals in Europe

DRAFT DIRECTIVE 2008

Renewable Energy 2020:

20% of final energy

34% of electricity (2005: 15%; 2020: 1200 TWh)

MaltaLuxembourg

United KingdomBelgium

NetherlandsCyprusIreland

HungaryItaly

GermanyCzech Republic

Slovak RepublicGreecePolandSpain

BulgariaFrance

LithuaniaSloveniaDenmarkRomania

EstoniaPortugal

AustriaFinlandLatvia

Sweden

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%Share of energy from renewable sources in final consumption

Target 2020Actual 2005

Roadmap for CSP Plants(installed Power)

Potential of CSP in Europe: installed capacity and annual energy production

0

25

50

75

100

125

150

175

200

2012 2020 20300

10

20

30

40

50

60

70

TWh/

a

60 GW / 170 TWh

30 GW / 85 TWh

4 GW / 11 TWh

GW

inst

alle

d Spain Portugal Italy Greece Cyprus+Malta

Spain: feed-in law is the driver

10 Plants inConstruction(470 MW)

About 60 projectscurrently under development

Today:

Remove Technical Barriers to Increase Competitiveness

Remove Capacity Limits Allow for full flexibility in Hybridization with other Renewables and Conventional Power Systems to maximize Efficiency and DispatchabilityExpand the European Grid to harvest the renewable power resource and distribute it to where it is needed

Some

Ideas to

make

this

happen

(i)

Ensure stable and bankable Financing Instruments

Longterm and stable Feed-In-Tariffs have proven as the most efficient instrument for sustainable renewable market penetrationEnsure that the Kyoto instruments such as CDM and JI are applicable to CSP and mechanisms are bankable and sufficient.Establish loan guarantee programs via existing windows at multilateral banks,Use of existing mechanisms (national, global environmentaland development programs)

Some

Ideas to

make

this

happen

(ii)

Open Transnational Renewable Energy Market Inside and Outside EU

Let renewable electricity cross Intra-European borders (Schengen for Green Electrons)Let renewable electricity enter the European Union from outsideEstablish bankable transnational renewable transfer tariffs for such interchange

Some

Ideas to

make

this

happen

(iii)

world

EU25

Europe Electricity demand can be covered in MENA

Electricity import from Northern Africa is viable option 0.4% of Sahara area covers Europs electricity demand (world: 2%)HVDC technology provides efficient transmission (~10% losses)

150 MW ISCCS at Hassi R’Mel

244 MW ISCCS at Ain Beni Mathar

146 MW ISCCS at Kuraymat

100 MW in Abu Dhabi

ISCCS Plants in Morocco, Egypt and Algeria with small solar shareMorocco and Egypt funded by GEFProject in Abu Dhabi in development

MENA First Projects in a Promising Future Market

Shake Hands with Northern Africa

Tap Africa’s unlimited solar resourceShare the technology, know-how and employmentBuild up an industrial and human resource base for the implementation of CSPDevelop economic relationships and create an investment framework by supporting electricity market liberalization in North AfricaSuch CSP employment opportunities will offer alternatives to emigration

Roadmap for CSP Plants(Cost reduction)

2005 2010 2015 2020 20250

5

10

15

20

25

30

35

40

45

2600 kWh/m² DNI (MENA)3%/a cost reduction

2100 kWh/m² DNI (Spain) 3%/a cost reduction

Range between 2% and 5% cost reduction per year

Wind, Spain

PV, Spain

Year

Sal

e Pr

ice

(ct/

kWh)

What brings the cost down?

Innovation in systems and components

Improving production technology

Increasing the overall efficiency

Enlarging the number of operation hours

Bigger power blocks

Reducing the O & M costs

Learning curve in construction

Economies of scale

Grant the Future for the Next Generation

Next generation technologies will significantly drive down costsPre-commercial demonstration plants allow next generation technologies to enter the marketDemonstration plants need loan guarantees from the EU to cover the technology innovation risk

The Role of the EU

Push technology, pull demand, push generation

Market development and penetration:Install demand pull instruments, promote feed-in-laws as most powerful instrument to push generationOpen the European transmission grid for solar power from North Africa and secure this power import by implementing demand pull instruments

Technology:R&D-funding for material, component and system development (e.g. coatings, storage, direct steam/molten salt systems, beam down, ...)Fund demonstration plants to push new technologies

Key Success Factors to make this vision comes true

Technical and economical success of the first projectsStable green pricing or subsidies to bridge the initial gap in LECs (e.g. feed-in tariffs)Successful cost reductionStrong R&D to leverage the potential of technical improvementNew markets and market opportunities (Power from North Africa to Europe)Strong CSP industry

www.estelasolar.eu

European Solar ThermalElectricity

Association