Concentrating Solar Power Systems Analysis & Implications Henry Price, PE SunLab/NREL
2
Parabolic Trough & Power Tower Technology Assessment
CSP Program Status SunLab Technology Assessments �
Sargent & Lundy Review � due-diligence technology review National Academy of Science Review of S&L Report
12/12/2002 CSP Analysis & Implications
Power Towers & Parabolic Troughs
3
Overview CSP Systems Approach
Solar Resource Power Markets Parabolic Trough Case Study
12/12/2002 CSP Analysis & Implications
5
NREL Siting Studies
( 2) ≥ /m 2 ≥ /m 2
Arilil 157
--
ico --
732
-l
1% of Land >7kWh/m2-day
~30 GWe
Land with Slope <1%
12/12/2002 CSP Analysis & Implications
State Resource Area km
6 kWh -day 7 kWh -day
zona 53,460 21,407 Ca fornia 26,793 11,073 Co orado 13,327 Idaho 1,284 Kansas 9,947 Nevada 26,137 6,122 New Mex 74,350 15,603 Oklahoma 6,408 Oregon 2,405 Texas 70,869 Utah 18,919 4,612 Wyoming 2,428
Tota 306,325 59,706
6
Power Markets
Market Characteristics � Southwest �
� Wholesale power market Competition � Fossil Fuel Costs �
Value of Solar Power � Ability to dispatch to meet peak load
12/12/2002 CSP Analysis & Implications
for CSP
Focus on USLarge-scale centralized generation
Electricity Cost Projections
7
SW Natural Gas Forecast
Strong demand growth for
Near-term
Mid-term Higher exploration and production costs
Long-term LNG Caps NG prices
3
4
5
2002 2007 2012 2017 2022
$/m
mB
tu
12/12/2002 CSP Analysis & Implications
Platts Research and Consulting
NG in electric power sector
Low 2002 prices resulted in drilling cut backs
2.5
3.5
4.5
Base High Demand High Deliverability High Hydro Low Hydro No LNG
8
Gas Price Forecast Comparison Platts vs. EIA AEO 2002
$/
2016 2031
12/12/2002 CSP Analysis & Implications
Gas
Co
st R
eal
MM
Btu
2.50
3.00
3.50
4.00
4.50
5.00
2001 2006 2011 2021 2026
Platts EIA AEO 02
Base Case Natural Gas Price Forecast Desert Southwest, $2002
10
SW Coal Costs
of new coal power plants
,
12/12/2002 CSP Analysis & Implications
Platts Research and Consulting
Air Quality constraints limit development
No Growth in Coal Demand Coal prices are reduced through mining productivity enhancements
0.80
0.90
1.00
1.10
1.20
2002 2006 2010 2014 2018 2022 2026 2030
$200
2/m
mB
tu
Forecast Coal Prices
11
Conventional Technology Cost of Electricity (New Plants)
PeakingCombustion
IntermediateCombined Cycle
Pulverized Coal
Cost $/MWh Lowest Cost When UsedService
12/12/2002 CSP Analysis & Implications
Source: Platts Research & Consulting
*At a 20% capacity factor.
$75* 0-20% Turbine
$75 to $41 20-60%
$41 to $28 60-100% Baseload
Corresponding
12
Conventional Technology Cost of Electricity (New Plants)
10%
60%
85%
Capacity Factor
Combustion
Combined Cycle
Pulverized Coal
High Fuel Price
$/MWh
Base Fuel Price
$/MWh
Low Fuel Price
$/MWh
12/12/2002 CSP Analysis & Implications
135.2 109.9 99.7 Turbine
56.3 40.9 34.6
32.0 31.2 30.7
Source: Platts Research & Consulting
13
15
20
25
30
35
0 4 8
Aug
Apr
California System Load Profile
12/12/2002 CSP Analysis & Implications
12 16 20 24
Hour of Day
Cal
PX
Sys
tem
Loa
d (G
We)
Dec
14
0
5
10
15
20
25
30
35
0 4 8
l
0
10
20
30
40
50
60
70
/
California System Load Profile Data from 1999 CalPX
12/12/2002 CSP Analysis & Implications
12 16 20 24
Hour of Day
Ca
PX
Sys
tem
Loa
d (G
We)
Wh
ole
sale
Pri
ce $
MW
e
Aug Load Dec Load Aug Rate Dec Rate
15
1250 MW Solar Plant No Thermal Storage
New System Load
250 MW Reduction In Peak Load
Solar Plant
Source: Pl
12/12/2002 CSP Analysis & Implications
After Solar Added
atts Research and Consulting
16
1250 MW Solar Plant
Reduction
Solar Plant
Source: Pl
12/12/2002 CSP Analysis & Implications
DISPATCHING FROM STORAGE
With Thermal Energy Storage
1250 MW
In Peak Load
with Thermal Storage
atts Research and Consulting
17
Solar/Hybrid Plant 30 MW SEGS Plant Output
-5 0 5
10 15 20 25 30 35 40
6 9 12 15 18 21
172 262 260
12/12/2002 CSP Analysis & Implications
Time of Day
Net
Out
put
(MW
e)
On-Peak
Day of Year
< 41
18
Wholesale Value Analysis
(%) ($/
Source: Pl
??
12/12/2002 CSP Analysis & Implications
Case Capacity Factor
Average Price Received
MWh) Average Price 100 41.17 Trough Plant No TES, SM 1.0 25.2 47.34 Trough Plant With 4 hrs TES, SM 1.5 34.1 53.40 Hybrid Trough 50.3 56.17 Wind Plant
Natural Gas Price $3.87/MMBtu
atts Research and Consulting
19
Market Conclusions
Baseload Power – 3
Green Adder – *
Value of CSP 4-6¢/kWh
12/12/2002 CSP Analysis & Implications
to 4¢/kWh Intermediate Load – 3.5 to 5.5¢/kWh
0.5 to 1.0¢/kWh
20
Trough LEC Learning Curve How low can it go?
SEGS
1
imited, 1990
12/12/2002 CSP Analysis & Implications
Experience
LEC = 0.4959 MWe -0.226
Pr = 0.855
0.01
0.10
1.00
10 100 1,000 10,000 100,000
Cumulative Power Plant Capacity Installed (MWe)
$0.06/kWh Goal
Source: Luz International L
SEGS I-IX, 354 MWe of Trough Power Plants
21
Parabolic Trough Case Study cost of energy?
Can Troughs Compete? � Market value of power 4-6¢/kWh � ~12¢/kWh Ways to reduce cost � Technology R&D � Policy � Market Deployment/Competition
12/12/2002 CSP Analysis & Implications
What is the potential for reducing the
Last SEGS plant cost
22
Trough Technology Assessment
Integrated performance model
Define current state-of-the-art Define avenues for cost reduction Development scenarios
12/12/2002 CSP Analysis & Implications
Define baseline assumptions
23
Systems Analysis Approach
l
Module Module
Solar Performance
Turbine/Parasitics
Design Module Module
Simulation Optimization
Module
Site
Data
Data Module
Financial Analysis Module
Excel Spreadsheet With VBA
12/12/2002 CSP Analysis & Implications
Integrated Trough Performance Model
CapitaCost
O&M Cost
Hourly Performance Simulation Module
Thermal Storage/Dispatch Fossil Hybridization/Backup
Plant Operating Strategy
Meteo
Output
24
Trough Baseline Assumptions
Technology Performance Data Capital Cost O&M Cost Economic Assumptions
12/12/2002 CSP Analysis & Implications
25
Technology Baseline
30 MWe (~100 bar, 700F, 37.5% gross) LS-2 Collectors (391 C)
Hybrid (NG boiler) No thermal energy storage
12/12/2002 CSP Analysis & Implications
SEGS VI Trough Plant
Receiver – Luz cermet
26
Trough Performance Baseline
0
50
100
150
200
250
300
350
400
450
0 100 200 300 350 400 450
Model
l.
SEGS VI 1999 Data
12/12/2002 CSP Analysis & Implications
SunLab Trough Performance Model
50 150 250
Actual Gross Solar Output MWh
Exc
Model = Actual
Daily Modeled Vs. Actual Gross Solar MWh
27
Trough Capital Cost Baseline
Cost Assumptions �
�
�
�
�
�
� Thermal Storage Costs � Nexant Model�
12/12/2002 CSP Analysis & Implications
Started with Luz/Flabeg Cost Data Roadmap (1998) Solar Field Costs Updated from Flabeg Rpt. (1999)
Solar Field Costs Modified for LS-2 collector Structure & mirrors same as LS-3 Increased HCEs, drives, interconnections (ball joints)
(2000) TES Development (2000-2002)
28
Trough O&M Cost Baseline
2
Pl ing
i
l
2 Sol i
i
i i
ici
l
2 i
l
l iel
Pl
12/12/2002 CSP Analysis & Implications
KJC Operating Company
* Scale for solar field size based on 500,000m
anner/Purchas Secretary
Plant Engineer Accountant
Computer Technic an Human Resources
4 Contro Room Operators
4 Plant Equipment Operators
ar F eld Operators
2 M rror Wash Crew *
Operat ons Superv sor
1 Electr an
2 Mechanics
2 Mechanic He pers
I& C Technic ans
Power Block Foreman
2 We ders *
2 Mechanics *
2 Laborers *
So ar F d Foreman
ant Manager
29
Baseline Economic Assumptions
DOE LCOE Methodology � 2002 real dollars IPP Project Financing �
� Current financial incentives �
12/12/2002 CSP Analysis & Implications
30 year cash flow model
Sargent & Lundy financial assumptions
30
SEGS VI Baseline
30 30 2]
0 0 10.6% 10.7% 22.2% 30.4% 3008
/
12/12/2002 CSP Analysis & Implications
Site: Kramer Junction Solar Only
Hybrid (25%)
Plant size, net electric [MWe] Collector Aperture Area [km 0.188 0.188 Thermal Storage [hours] Solar-to-electric Efficiency. [%] Plant Capacity Factor [%] Capital Cost [$/kWe] 3204 O&M Cost [$/kWh] 0.046 0.034 Fuel Cost [$ kWh] 0.000 0.013 Levelized Cost of Energy [2002$/kWh]
0.170 0.141
31
Near-Term Technology Parabolic Trough Plant
� 50 MWe (~100 bar, 700F, 37.5% gross) � LS-2+ Collectors (391 C) �
� Solar only or hybrid �
� No thermal storage
12/12/2002 CSP Analysis & Implications
Current State-of-the-Art (Plant built today)
Receiver – Solel UVAC2
Solar multiple 1.5
32
Current State-of-the-Art 50 MWe Trough Plant
2] 0.312 0.312 0 0
13.9% 14.1% 29.2% 39.6%
0.024 0.018 0.000 0.010
0.096
12/12/2002 CSP Analysis & Implications
Site: Kramer Junction Solar Only
Hybrid (25%)
Plant size, net electric [MWe] 50 50 Collector Aperture Area [kmThermal Storage [hours] Solar-to-electric Efficiency. [%] Plant Capacity Factor [%] Capital Cost [$/kWe] 2745 2939 O&M Cost [$/kWh] Fuel Cost [$/kWh] Levelized Cost of Energy [2002$/kWh]
0.110
33
Opportunities for Reducing the Cost of Energy
Concentrator Design Advanced Receiver Technology Thermal Energy Storage Plant Size O&M
Power Park Competition Financial
12/12/2002 CSP Analysis & Implications
Design Optimization/Standardization
35
Trough Concentrator Cost Reduction Opportunities
LS-2 Baseline Reduce Costs � Increase Size � Optimized Structure � Competition Improved Performance � Increase mirror reflectivity � Increase cleanliness
12/12/2002 CSP Analysis & Implications
36
Trough Concentrator Current Development
12/12/2002 CSP Analysis & Implications
IST Concentrator
Trough Wind Tunnel Testing EuroTrough Concentrator
Duke Solar Concentrator
37
Concentrator Size
50 5
50 2)
/m2)
/
12/12/2002 CSP Analysis & Implications
Impact on Cost of Energy
Site: Kramer Junction LS-2 LS-3 100
LS-3 150
Aperture (m) 5.75 5.75
Length (m) 100 150
Aperture Area (m 235 545 818
Number of collectors relative to LS-2 size collector
100% 43% 29%
Number of receivers relative to LS-2 size collector
100% 87% 87%
Est. Collector Cost ($ 233 208 202
Levelized Cost of Energy 2002$ kWh
0.110 0.103 0.102
38
Trough Receiver Cost Reduction Opportunities
�
�
� Thermo/Optic Properties � Higher Temperatures
Reduced Cost � Selective Coating Process �
�
12/12/2002 CSP Analysis & Implications
Improved Reliability Reduced Breakage (G/M Seal) Durability in Air at Temperature
Improved Performance
Design Changes Competition
39
Solel UVAC Receiver Test Results
lel
li
NA
i l
i l
Property
12/12/2002 CSP Analysis & Implications
Receiver Luz Cermet
Solel UVAC
Data source SNL test SNL test SPF test for So
Enve ope solar transm ttance
0.930 0.965
Coat ng so ar absorptance
0.915 0.95-0.96 >0.944
Coat ng thermaemittance
0.14 @ 350°C
0.135 @ 400°C
0.091 @ 400°C
UVAC Field Test Results UVAC Selective Coating Test Results
40
Trough Receiver Technology /
VI
Adv l
12/12/2002 CSP Analysis & Implications
Impact on the Cost of Energy
0.100
0.105
0.110
0.115
0.120
0.125
0.130
0.135
0.140
0.91 0.92 0.93 0.94 0.95 0.96 0.97 0.98 0.99
Absorptance
LC
OE
($
kWh
)
SEGSCermet UVAC UVAC2
Adv Re
E = 0.15
E = 0.10
E = 0.05
Near-Term Receiver Technology Assumption
Field Tested
Near-Term 50 MWe Trough Plant
CCN
CN
R 1 R 2
X
H H
H
imidazoliumsalt
12/12/2002 CSP Analysis & Implications 41
Thermal Storage Developments
Near-term Option Two Tank Molten Salt Storage � Leveraged experience from Solar Two’s TES. � Heat transferred via an oil-to-salt HX.
Advanced Technologies Thermocline Molten Salt System � Single tank. Hot and cold separated with thermal
gradient. � Low-cost filler material � Design and operation more compex than 2-tank
Molten Salt HTF/Storage � Increased operating temperature (450-500C), reduced
piping cost, reduced parasitics � Freeze protection of fluid (120C), SCA interconnection,
increased O&M complexity Advanced HTF � Imidazolium salts have potential to be thermally stable
to above 400 C with very low freezing point � Compatible with alloys used in solar plants, non-
flamable, low vapor pressure � Cost and temperature stability issues
Solar Two Molten Salt Thermal Storage
Prototype Thermocline Storage
Propane Salt Heater
Salt to Air Cooler
Drain sump
Cold pump
Hot pump
TCTC
TCTC
TCTC
TCTC
TC
TC
Thermocline Tank
CC N
C N
R 1 R 2
X
H H
H
imida z olium sa lt
CCN
CN
R 1R 1 R 2R 2
X
H H
H
imidazoliumsalt
imidazoliumsalt
42
Thermal Storage Design Optimization
Plant
0 4 8 12 16
Optimum
12/12/2002 CSP Analysis & Implications
Impact on Cost of Energy
Near-Term 50 MWe Trough
6 Hours of TES
0.100
0.105
0.110
0.115
0.120
0.125
0.130
0.135
LMTD
LEC
$/k
Wh
323,360
368,480
413,600
458,720
503,840
552,720
597,840
Solar Field Area (m2)
43
Thermal Storage Technology Impact on Cost of Energy
No TC i
i450C
i0
5
10
15
20
25
30
35
/
Plant
l
12/12/2002 CSP Analysis & Implications
0 .110
0 .10 1
0 .0 9 6
0 .0 9 1 0 .0 9 0
0 .10 5
0.085
0.090
0.095
0.100
0.105
0.110
0.115
0.120
Storage 2-Tank Indirect Ind rect
2-Tank Direct 450C
TC D rect TC D rect 500C
LCO
E 2
002$
/kW
h
Sto
rag
e C
ost
$kW
ht
LCOE
Storage Cost
Near-Term 50 MWe Trough
Enabling Technologies - Sa t HTF - Thermocline Storage
44
Plant Size
10 50 100 200
Plant
l
12/12/2002 CSP Analysis & Implications
Impact on Cost of Energy
0.204
0.137 0.110
0.094 0.084 0.076
0.00
0.05
0.10
0.15
0.20
0.25
25 400
Plant Size MWe
LC
OE
200
2$/k
Wh
Near-Term 50 MWe Trough
Enabling Technologies - Ball Joints - Sa t HTF
45
Solar Resource
/m 2
8.0 a 7.6 b
NV 7.1 0.125 b 6.9 0.124 b 6.8 0.127 b 6.4 0.147 b 6.4 0.147 b
/
12/12/2002 CSP Analysis & Implications
Impact on Cost of Energy
Site DNI
Resource kWh day
LCOE
$/kWh
Source
Kramer Junction, CA 0.110 Daggett, CA 0.115 Las Vegas, Phoenix, AZ El Paso, TX Cedar City, UT Reno, NV Source: a – KJC Operating Company, 1999 DNI data
b – NREL TMY 2 Data, http://rredc.nrel.gov
46
Cost of Capital Impact on Cost of Energy
6% 2% 18% 14% 12% 8%
LCO
E 2
002$
/kW
h
Plant
12/12/2002 CSP Analysis & Implications
0.110
0.098
0.081
0.116
0.110 0.107
0.097
0.080
0.085
0.090
0.095
0.100
0.105
0.110
0.115
0.120
8.5%
Debt rate, IRR=14% IRR, debt 8.5%
Near-Term 50 MWe Trough
47
Tax Incentives Impact on Cost of Energy
Plant
12/12/2002 CSP Analysis & Implications
0.110
0.119
0.109
0.093
0.115
0.078
0.070
0.080
0.090
0.100
0.110
0.120
0.130
Ba s e 10% IT C
No IT C 1.7c P T C 30% IT C No P rop e rty
Ta x
All
LCO
E 2
002$
/kW
h
Near-Term 50 MWe Trough
12/12/2002 CSP Analysis & Implications 48
Trough Development Scenario
0.00570.01030.02330.0462O&M Cost $/kWh
20%5%Cost Reduction
56%56%30%22%Capacity Factor
2225341628652954Capital Cost $/kWe
17.2%16.2%13.4%10.6%Solar to Electric ηηηη
12 hrs TC Dir
12 hrs TC Dir
NANATES
Salt 500 C
Salt 450 C
VP-1 390 C
VP-1 390 C
HTF
Adv Adv
LS-3+ Adv
LS-2 UVAC2
LS-2 Luz
Collector Receiver
400 2.5
100 2.5
50 1.5
30 1.2
Plant Size: MWe Solar Multiple
Long-Term
Mid-Term
Near-Term
SEGS VI 1989
49
Trough Development Scenario
Mi
12/12/2002 CSP Analysis & Implications
Cost of Energy
0.170
0.110
0.066
0.042
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
SEGS VI Near-Term d-Term Long-Term
LCO
E 2
002$
/kW
h
50
Trough Development Scenario
12/12/2002 CSP Analysis & Implications
Breakdown of Cost Reduction
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
SEGS VI Near-Term Mid-Term Long-Term
LCO
E 2
002$
/kW
h
Scale-up 37%
R&D 42%
Competition & Volume Production 21%
51
Trough Power Plant Scenarios
0.00
0.02
0.04
0.06
0.08
0.10
0.12
Mi
//
12/12/2002 CSP Analysis & Implications
with Different Financing Assumptions
Near-Term d-Term Long-Term
LCO
E 2
002$
/kW
h
IP P w 10% IT C IP P w 1.8c P T C
30% IT C + 1.8c P T C Mu n i Fin a n c in g
Region of Interest
52
Conclusions
� Identification of market and keyrequirements
� Identification of appropriate metrics Integrated analysis tools are essential � Helps in defining metrics � Technology assessment � Decision Making
12/12/2002 CSP Analysis & Implications
CSP Systems Analysis & Implications
Market assessment important