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CSP Today Webinar
COST ASPECTS OF STE PLANTS
IN THE MENA REGION IN THE MENA REGION
Dr. Luis Crespo
President of ESTELA
Opportunities and value of current applications
of the different STE technologiesE
ffic
ien
cy
Parab. trough
Compressed
Air Rec. Tower
Molten salt tower
Strong PV competition
Hybridization will
enhance competitiveness
Low investment
& High Efficiency
Integrated
Solar Field
Peak Power
(No storage)
Base Load
(Large storage)
Dispatchable
(Medium size storage)
Fresnel
Parab. trough
FresnelParab. troughSteam Tower Parab. trough
Molten salt tower Molten salt tower
Parab. trough
Cost and revenues issues
� The cost of the electricity depends on the DNI, efficiency, CAPEX,
OPEX, financial costs, public supports, expected life, … (LCOE?)
� The revenues depends on the dispatch profile and the hourly and
seasonally associated prices along with the electricity price evolution
� All projects until now have been promoted on a FiT or PPA basis� All projects until now have been promoted on a FiT or PPA basis
� Although the “golden end” is a relevant aspect of these plants there
are no commercial ways to take it into account when determining the
financing terms and conditions. It must be explained to Policy Makers
as a big added value when establishing the support programs
� Therefore the only practical approach to refer to the cost of STE
electricity will be to determine which is the PPA or FiT that allows
a STE plant to be built.
Cost references from current projects
30 c€/kWh
13 c$/kWh30
c€/kWh
25 c$/kWh
25 c€/kWh
10
21 c$/kWh
14 c€/kWh
0
The “harmonization” model for STE costs
Actual PPA for a
given project at a
certain location
Harmonized PPA for
a typical project at
the same location
“Discount” factors
PPA or FiT
duration
Plant size
PPA escalation
ratecertain location
under specific
support
circumstances
the same location
without public
support Concessional
loans
Specific Financial
conditions
Loan duration
Grants
DISCLAIMER: This attempt to provide reference prices must be considered approximated. There are many
default values that might be not applicable to all projects as well as some country specific requirements.
Stars corresponds to “normalized”
PPAs or FiTs in 2012 at their respective
locations in Spain, USA, India, Morocco
Cost reduction estimations:
The view from the Industry in 2012
locations in Spain, USA, India, Morocco
South Africa and Israel
Hypothesis: 30 GW
will be built at that time
What has been done so far (Stars mean achievements)
Cost reduction:
Structure
Tubes
Mirrors
Performance increase
Cost reductionCost =
Performance increase
Source:
Deloitte, Macroeconomic Impact of STE sector in Spain, 2010
Cost breakdown for a 50 MW plant with 7 h. storage
Performance increase
Cost =
The increase of financing
costs has counteracted this
effort to some extend
The role of reductions on
investment and financial costs
10%
15%
20%
25%
30%
35%
PP
A
red
ucctio
n
Redution of PPA with CAPEX
4%
6%
8%
10%
12%
14%
PP
A
red
uctio
n
Reduction of PPA with interest rate
0%
5%
10%
0% 10% 20% 30% 40% 50%
PP
A
CAPEX reduction
0%
2%
4%
0%2%4%6%8%10%
PP
A
red
uctio
n
Interest rate
Performance increase will play
as important role as CAPEX reduction
Both effects together will make
STE plants affordable
inn
ova
tio
n
The tool for policy makers
Years
Cost/kWh
STE Plant
Year 1
Gap1
Conventional
Plant
Year n
The basic questions:
� How much will a support program cost?
� How much can the economy of my
country benefit from it?
Power Energy Cost Returns of all kind Diference
Year -2 0 0 0 R1 Positive
Year -1 0 0 0 R2 Increasing
Year 1 Gap 1 P 1 E 1 G1xE1 R3 Increasing
Year 2 Gap 2 P 2 E 2 G1xE1 + G2xE2 R4 Increasing
Year 3 Gap 3 P 3 E 3 G1xE1 + G2xE2 + G3xE3 R5 Increasing
… … … … … … Increasing
Year n 0 Pn En G1xE1 + G2xE2 + G3xE3 + …Gn-1xEn-1 Rn Increasing
Year n+1 0 En+1 idem Rn+1 Increasing
… Increasing
Year 25 0 P25 E25 G2xE2 + …. R25 Golden End starts
Years
