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The Concentrating Solar PowerGlobal Market Initiative
0°
The Concentrating Solar Power Global Market Initiative
Solar energy is the largest and most widely distributed renewable energy resource on ourplanet. Among the solar electric technologies,concentrating solar power (CSP) is the lowestcost and the largest bulk producer of solar elec-tricity in the world. CSP plants (also referred toas solar thermal power) have the capability tomeet a significant percentage of the future globalelectricity demand without technical, economicor resource limitations, specifically in sun-beltregions such as the southwest U.S., southernEurope and broad regions of the developingworld. This capability and the ability of solarthermal power plants to dispatch power as neededduring peak demand periods are key characteri-stics that have motivated development banks,such as the World Bank, the European Invest-ment Bank and the German KfW Group, as wellas other organizations, such as the United NationsEnvironment Programme, as an implementingagency of the Global Environment Facility (GEF),the European Union and the U.S. Department ofEnergy, to support the large-scale implementa-tion of this technology.
CSP systems have been used since the early1980s to generate electricity and to provide heat.The investment of US$ 1.2 billion between 1984and 1991 in nine commercial parabolic trough solarpower plants in the California Mojave desert,totaling 354 MWe, (known as the SEGS plants)and their successful continued operation andperformance, demonstrate the readiness of CSP.Today, these California plants are still operatingreliably and have produced more than 50% of allsolar electricity in the world. The CSP industry,as well as other reliable and qualified independentthird parties1,2, anticipate that solar electricitygeneration costs will be fully competitive withfossil-based, grid connected power generationcosts once an initial 5,000 MWe of new CSPsolar capacity is installed globally.
CSP technologies are at the threshold ofextensive commercial deployment. In the U.S.,Nevada Power recently signed a long-term powerpurchase agreement for a 50 MWe solar troughpower plant near Hoover Dam. In late 2002, Spainimplemented a feed-in law, exclusively dedicatedto solar thermal power, that will trigger invest-ments of about ¤ 0.6 billion for an initial 4 projectstotaling 150 MWe. In addition, two of the four GEF-funded CSP projects, in India and Mexico, eachwith investments of about US$ 160 million, arecurrently in the bidding phase and another 600MWe of CSP plants are in the early stages ofdevelopment.
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Introduction
Û C S P G l o b a l M a r k e t I n i t i a t i v e
Aerial view of
5 x 30 MWe parabolic
trough SEGS power
plant complex
at Kramer Junction,
California, USA
Û
Û 1 Cost Reduction Study for Solar Thermal Power Plants (Preparedfor the World Bank), Enermodal Engineering Limited, April 1999Û 2 Assessment of Parabolic Trough and Power Tower Solar TechnologyCost and Performance Forecasts (Prepared for the US Department ofEnergy), Sargent & Lundy Consulting Group, October 2002
3
Two international executive conferences havebeen held to address the barriers to current andfuture CSP project opportunities and to expandthe global market for CSP. The First InternationalExecutive Conference on Concentrating SolarPower held June 2002 in Berlin, Germany, andwas sponsored by the United Nations Environ-ment Programme, the GEF, the German FederalMinistry for the Environment (BMU), the KfWGroup, the European Solar Thermal PowerIndustry Association (ESTIA) and the AmericanSolar Energy Industries Association (SEIA). Theconference participants discussed a Global MarketInitiative for CSP and defined strategies for facili-tating the rapid, large-scale market introductionof this technology. This strategy, published as theDeclaration of Berlin, was registered in Johannes-burg as a UNEP Market Facilitation WSSD Type-IIPartnership for Concentrating Solar Power Tech-nologies. Following the Berlin event, two regional workinggroups were formed to develop approaches tofacilitate regional CSP markets. The Second Inter-national Executive Conference on Expanding theMarket for Concentrating Solar Power was held inOctober 2003 in Palm Springs, at the invitation ofthen-Governor Gray Davis of California. At thisevent, the California Energy Commission, the USDepartment of Energy and the IEA SolarPACESImplementing Agreement joined the sponsors ofthe Berlin conference to finalize and launch theCSP Global Market Initiative (GMI).
The objective of the GMI is to facilitate andexpedite the building of 5,000 MWe of CSPworldwide over the next ten years. This initiative represents the world’s largest,coordinated action in history for the deploy-ment of solar electricity.
Overviewof CSP Technologies
Solar thermal power generation using concentra-ting collectors, commonly referred to as concen-trating solar power (CSP), involves the conversionof solar radiation to thermal energy, which is thenused to r viable alternative to conventional ener-gy systems and, depending on the particular tech-nology, is suited to either distributed generationon the kW scale or to centralized power genera-tion on scales up to several hundred MW. CSPsystems use parabolic trough concentrating col-lectors, power tower/heliostat configurations,and parabolic dish collectors. An alternative systemthat uses Fresnel concentrators is under develop-ment. Parabolic trough, power tower and Fresnelsystems typically run conventional power units,such as steam turbines. Parabolic dish systemspower a small heat engine at the focal point ofthe collector.
Parabolic Trough and Power Tower PlantsParabolic trough (Fig. 1) and power tower (Fig. 2)solar systems generate high-pressure steam todrive conventional steam turbine generators insizes from 30 to 200 MWe or can be used to aug-ment combined-cycle power plants. These systemsachieve peak solar-to-net-electric system efficien-cies of over 20% and use about 5 acres (or 2 hec-tares) of land for each MWe of capacity installed. Power supply during a typical summer day remainsconstant from early morning to early evening. Û
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Û C S P G l o b a l M a r k e t I n i t i a t i v e
1
5
Û An important characteristic of trough and towersystems is their ability to dispatch power on demand by using a thermal storage system oraugmenting the solar energy with a fossil-firedboiler. Because time-of-use prices of electric powercan be significantly higher at peak times, the valueof the solar energy is enhanced, and the predict-able output is better for planning and matchingpeak demand. Thus, solar thermal plants with cost-effective storage or natural gas hybridization candeliver power to the utility grid when that power ismost needed, not just when the sun is shining.
Parabolic Dish with Heat EngineA parabolic dish solar power system (Fig.3) con-verts the sun’s energy to electricity by focusingthe sun’s rays on a heat engine located at thedish’s focal point. The dish is always aimed direct-ly at the sun by a dual-axis tracking system con-sisting of a drive motor, gearing and controls.Dish/engine systems are suitable for distributedpower applications, with unit outputs of about25 kWe. Units can be installed in groups to achieveMW-scale systems. Kilowatt-scale dish/enginesystems have demonstrated solar-to-electric effi-ciencies of near 30%.
2 3
6
Û source: This graph combines information from independent studies, industry and laboratory
Û C S P G l o b a l M a r k e t I n i t i a t i v e
CSP Electricity Cost as a Function of Cumulative Installed Capacity
Levelized Electricity Cost(Nominal 2004 US $/kWh)
0 5,000 10,000 15,000
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
Cumulative Installed Capacity (MW)
14 MW SEGS
30 MW SEGS I
80 MW SEGS VI
High Solar Resource
Good Solar Resource
50 MW AndaSol, Spain
All new technologies such as gas turbines, nuclearpower plants or wind power plants, cost more attheir introduction relative to mature market prices.In order to become commercially viable, all energytechnologies have initially received financial sup-port from governments, based on the perceivedbenefits that would result if the technology wereto become commercially widespread. For example,today’s gas turbines, which were initially subsi-dized, are now significantly less costly due to ad-vanced designs and mass production. The sameprinciples apply to CSP, which has not yet achievedmass production or optimization of its components.Many countries and states have solid experiencein commercializing new energy technologies, andthey have adopted proven approaches to lowertheir costs, enhance the businesses that produceand deliver them, and protect consumers by achiev-ing greater reliability and better cost-effectiveness.
The experience with the commercial implemen-tation and operation of the nine parabolic troughSEGS plants in the Mojave desert of California,
built by Luz International, Ltd. in the mid 1980s
and early 1990s and operating continuously since,shows that power generation costs could bereduced, in nominal 2004 US$, from an initialUS$ 0.44/kWWe for the first 14 MWe unit to justUS$ 0.17/kWhe for the last 80 MWe unit in onlyseven years. (As a reference, the cost of electricityfrom the first 14 MWe unit was US$ 0.25/kWhe
in 1985 dollars.)
The cost of CSP generated electricity is ex-pected to be further reduced in future yearsthrough technology improvements, scale-upof individual plant MW capacity, increasingdeployment rates, competitive pressures, em-ploying thermal storage, new heat transferfluids, and advancements in operation andmaintenance methods.
These factors were considered in recent indepen-dent and comprehensive evaluations of CSPtrough and power tower technologies requestedby the World Bank and the US Department ofEnergy. Both studies found that future plantshave the potential to directly compete with fossilpower. Figure 4 projects that a cost of US$ 0.07-0.09/kWhe will be achieved after installation ofthe first 5,000 MW of CSP globally. Costs are Û
CSP Costs
7
738 738
Û expected to reach US$ 0.05-0.07/kWhe after15,000 MW have been installed. This price wouldbe competitive with the price of fossil power plushas numerous environmental and socio-economicbenefits that are discussed in more detail below.Many factors affect the CSP electricity cost, aboveall, the solar resource, but also costs for grid con-nection and local infrastructure, project develop-ment costs, the rate of technology advancementsand mass production. While scaling-up plant sizeoffers the easiest opportunity for reducing the costof power, a number of technology R&D advanceshave been identified that also can significantlyreduce costs. These include increasing the collectorsize, improving the receiver efficiency and develop-ing advanced thermal storage technologies as wellas advanced heat transfer fluids. Finally, increasedcommercial competition and volume productionof solar field components and subsystems willcome into play to further reduce the cost of CSPgenerated electricity.
Of course, the apparent financial cost of energy can be further reduced through preferentialfinancing conditions and tax or investmentincentives.
While varying with region, demands on the elec-trical grid in industrialized countries of the sun-beltregion normally peaks in the summer monthsduring the afternoon and early evening hours.Because CSP provides a natural match with thispeak power demand, CSP can lower the strain onthe electric grid at a time when high demandoccurs. Furthermore, through the integration ofsolar thermal storage or supplemental fossilfiring, solar thermal power plants produce dis-patchable electricity to match peak demandsat any time. Similar benefits also are possiblethrough the integration of CSP steam generationwith conventional (steam- or combined-cycle) powerplants.
Concentrating solar power systems can bebuilt in a range of sizes from 25 kWe to 100’s ofMWe, allowing them to be sited close to wherethe electricity is needed or fed into integratedgrid systems. Providing electricity in a moredistributed manner can improve grid stabilityand security. Generating electricity from adomestic source of energy that cannot be disrup-ted or whose resource does not change in costhas significant economic and national securityadvantages.
In many regions of the world, one square kilo-meter of land is sufficient to generate as much as100-200 Gigawatt hours (GWh) of solar electricityper year using solar thermal technology. This isequivalent to the annual production of a 50 MWe
conventional coal or gas-fired power plant. Overthe total life cycle of a 50 MWe solar thermal powersystem, its output is equivalent to the energycontained in 16 million barrels of oil. Worldwide,the exploitation of less than 1% of the total solarthermal potential would meet the recommenda-tions of the United Nations‘ IntergovernmentalPanel on Climate Change for the long-term stabili-zation of the climate.
Benefits of CSP
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Û C S P G l o b a l M a r k e t I n i t i a t i v e
CSP Global Market Initiative
Recent activities indicate that CSP technologies arepoised at the threshold of extensive commercialdeployment. There are currently about 10 CSP pro-jects under development around the world, totalingabout 1,000 MWe of new concentrating solar powercapacity.
One of the market barriers to further deploy-ment is a lack of knowledge about the current tech-nology and near-term potential of CSP on the partof energy policy makers, regulators, general con-tractors and would-be owners and users. Withincreased awareness of the numerous benefits ofusing the solar thermal energy resources aroundthe world, and the necessary policy frameworkin place, it is anticipated that more CSP projectswill come on line. And, these projects would startfaster and be more profitable if there was a forumfor collaboration among interested countries andstates.
To create such a forum, an international public-private CSP partnership (recognized as an UNEPMarket Facilitation WSSD Type-II Partnership forConcentrating Solar Power Technologies) wasestablished at the World Environmental Summitin Johannesburg, South Africa in September 2002.
The goal of this coordinated action, called theCSP Global Market Initiative (GMI), is to facili-tate and expedite the building of 5,000 MWe ofCSP power worldwide over the next 10 years.
Participation is open to all governments in coun-tries or states with adequate solar thermal resour-ces, to countries that have an industrial capabilityin CSP technologies, but lack the appropriate solarresources, and to others who contribute to estab-lishing the framework proposed below. If the bene-fits of CSP are to be spread globally, it is essentialthat participating industrial countries outside thesun-belt either support investments in sun-beltcountries and/or allow import of solar power atcost-covering rates, thereby stimulating invest-ment in CSP plants.
Solar MW
2004
1,000
2,000
3,000
4,000
5,000
2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Anticipated Market of CSP existing CSP capacitiy New Solar Capacity
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A visible, reliable and growing market for solarthermal power with normal risk levels must beestablished in order for project developers andCSP equipment suppliers to make the neededlong-term investments to achieve acceptableinvestment costs, and hence competitive rates.The following policy areas will have the greatestimpact on the use of concentrating solar power. Each country or state participating in the CSPGMI will contribute with the following policymeasures:
Û 1. TargetsAs the overall goal of the CSP GMI is 5,000 MWe
to reach cost competitiveness by 2015, nationaland/or regional targets will be set for CSP capa-city. These targets may be a specific number ofMW over a certain period of time, or may be apercentage of CSP within the new capacity to bebuilt over a certain period of time, as in Renew-able Portfolio Standards.
Û 2. TariffsThe level of revenue for CSP projects needs tobe adequate to encourage private sector invest-ment and provide a stable investment climate.This can be achieved by feed-in tariffs, productiontax credits, or public benefit charges specific forCSP. These supports will be designed to reduceover time as the CSP technology becomes com-petitive in the power market after 5,000 MWe ofCSP has been built by 2015. Coordination with par-ticipating neighboring countries, states or regionswith preferential tariff schemes will allow CSP-based electricity imports from high solar radiationareas (and therefore lower electricity costs). Theuse of long-term power purchase agreements orsimilar long-term contracts with credit-worthy off-takers, or equity ownership by public organizationswill build confidence of investors and financialinstitutions.
Û 3. FinancingCooperating bilateral and/or multilateral finan-cial institutions will ensure that project-relatedflexible Kyoto instruments such as Clean De-velopment Mechanisms and Joint ImplementationActions become applicable to CSP and ensurethat the mechanisms are bankable. The estab-lishment of national or regional loan guaranteeprograms via existing windows at multilateralbanks, national lending programs and global en-vironmental programs, such as GEF, UNEP, andUNDP will further reduce the inherent risk of intro-ducing new technology for private sector bankinginstitutions.
Investment tax credits, which stimulated thefirst 354 MWe of CSP plants in the United States,should be maintained and production tax creditssimilar to those that have stimulated the growthof wind power in the United States should bemade available to CSP plants. Cost-shared deve-lopment of transmission lines between regionswith excellent solar resources and urban loadcenters, even across borders of participating coun-tries and regions will optimize the developmentand exploitation of all regional resources.
Û 4. RegulationLimitations on CSP plant capacity or operatingstrategies that make the technology introduc-tion more costly need to be avoided. Legal re-strictions and barriers to allow more cost-effectiveconnections of CSP plants to the electric grid atthe end user (customer), distribution and/or trans-mission points shall be identified and eliminated.
Required Elements of the CSP GMI
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Û C S P G l o b a l M a r k e t I n i t i a t i v e
Different Strategies for different Regions
To account for the differences between countriesin the development of CSP-related policy instru-ments and in the amount of their solar resource,the CSP GMI participants have defined threeregions with a different strategy for each.
Û Region IRegion I includes those countries and statesthat have already partially implemented thepolicy measures recommended by the CSP GMIor that will implement such measures in thenear-term. Countries in Region I include those insouthern Europe, southwestern United States andIsrael. In these countries, existing CSP-specifictargets or portfolio standards will create a market-based demand and a feed-in law or public benefitcharge. Both rely on the ratepayers, and can beused to cover the price gap between the compe-titive price and CSP electricity costs.
In Region I, additional political support isneeded to make targets, policies and tariffs stableand predictable so that commercial financing canbe secured. Tariff incentives should reflect differentlevels of solar radiation intensity so that eachregion, country or state with radiation levels above1,900 kWh/m2/a has the chance to develop thisstrategic solar resource. Integration of tariffs acrossgovernmental boundaries will help to ensure thatthe resource is more cost-effectively developed.Capacity restrictions for individual projects shouldbe removed to make best use of economies ofscale to help drive prices lower. Alternatively, thedemand may be aggregated to assure that CSPplants are built in sizes of 50 MWe or larger.
Region IIRegion II includes those countries that are orwill soon be connected to Region I countriesfor transnational power exchange. Countriesin Region II include Algeria, Morocco and Mexico.Solar power generated from CSP plants in thesecountries could be exported to Region I countriesat a much more attractive price than generatingit from the inferior solar resource in Region I. Asa result of their excellent solar radiation resourcesand good grid connections, the southwestern USand northern Mexico as well as southern Europeand North Africa offer such cross-border possibi-lities.
The Region II participants will take the politicalinitiative to formulate a fair scheme that accountsfor both improved tariffs for clean energy generatedin the Region II countries and to allow a benefitfrom enhanced feed-in tariffs for energy that isimported into Region I.
To some extent, the large tariff differences be-tween ostensibly cheap fossil-based bulk powerand solar generated power are due to subsidiesgranted implicitly or explicitly for fossil fuel insome countries. This inflates the subsidies neededto cover the apparently higher cost of CSP power.Therefore, access to favorable Region I tariffs couldbe offered while reducing subsidies on fossil powerproduction in Region II to minimize net funding.The financial cost gap can be further reducedthrough a blend of clean development mechanisms(CDM such as carbon tax credits), and preferentialfinancing, such as the European Union’s infrastruc-tural support program, the Mediterranean Develop-ment Aid (MEDA) – Program for Region II.
11Û source: Presentation to the Euro-Mediterranean Ministerial Meeting of May 2003.
Projects ofPan-European Interest
Proposed priority axes for electricityinterconnections
Transmission Line*Gas Pipeline*High Insolation Area
*Source: POWERmap.© Platts 2003,a Division of the McGraw-HillCompanies
Legend
UCTE Synchronous Area BoundaryMaghreb Synchonous AreaMashreq Synchronous AreaProposed Euro-Meditteranean Electricalinterconnections of regional interestExisting 400/500 kV line (partial)Projected 400/500 kV LineExisting 200 kV line (partial)Projected 200 kV Line300/330 kV Lines119 kV to 150 kV 110 kV to 150 kV projectedExisting DC lineProjected DC lineExisting 750 kV lineExisting power stations (hydro & thermal) in Mediterranean Partner countriesProposed priority axes for electricity interconnections
US-Mexican Gas and Power Interconnection
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Û C S P G l o b a l M a r k e t I n i t i a t i v e
Region IIIRegion III includes developing countries notinterconnected to the grid of Region I countries.Countries in Region III currently include Brazil,Egypt, India, Iran, Jordan and South Africa.Preferential financing in the form of subsidies(which could be grants, soft loans, carbon credits,CDM or green premiums) provided by Region Isources will be required to support the Region IIIcountries’ desire for development of clean CSPpower plants.
An example of such sources is the commitmentof ¤ 0.5 billion for renewable energy over a five-year period within the scope of the German Eco-nomic Co-operation with developing countries thatwas announced by German Chancellor, Mr. GerhardSchroeder, in his UN Environmental Summit speechin Johannesburg in September 2002.
In the mid-term, the Region III participantsin the CSP GMI will profit from closing the pricegap as a result of growing installed CSP capacity inRegions I and II. Recognizing that financial resour-ces are limited, Region II and III participants willcontribute to help reduce the cost of CSP plantsbuilt in their country, by providing free or low costland, infrastructure and grid access as initial marketintroduction incentives.
In general, quota systems, auctions, green cer-tificate schemes, tax benefits, energy feed-in lawsor public benefit charges in which the rate payerscover the incremental cost, are all feasible ap-proaches in Region I and may be, to some extent,applicable in Region II. Other forms of subsidieswill be required in those countries not connectedto the grid of countries with energy feed-in laws orpublic benefit charges that are allowable in thosesituations. These subsidies could be provided bydonor organizations, trust funds, foundations andother institutions with a specific mission to supportrenewable energy that participate in the GMI.
0°
Appropriate for Solar Thermal Power Plants:
excellent very good good not appropriate
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The purpose of the Global Market Initiative forCSP is to help create the conditions conducive fornew CSP plants and to expedite their deployment.Building 5,000 MWe of CSP in 10 years by a singlecountry is unlikely, but achieving it through a col-laborative effort is feasible.Û Region I countries will benefit from parti-cipating in the GMI because (1) the cost of CSP-generated electricity will be reduced faster withthe aggregate demand from the other countries,(2) they could establish themselves as major playersin a growing CSP export market, and (3) they couldcollaborate in establishing favorable policy measuresinternationally which expands the CSP market.Û Region II countries will benefit by (1) develop-ing their domestic and clean energy resource, and(2) exporting clean power to Region I countries.The green label makes a better export product. Û Region III countries will benefit by (1) develop-ing their domestic and clean energy resource and(2) reducing their cash outflows for purchasingimported fuels. They also will benefit from the costreductions resulting from CSP plants built inRegions I and II.
The collaborative effort of the three Regionswill assure that the market introduction costof CSP will be reduced by aggregating the CSPmarket and making best use of existing cleanpower instruments. All participating countrieswill be helped in reaching their Kyoto goals.
Participation in the GMI will enhance the successof CSP projects in participating countries throughthe sharing of experiences and the maximizingof shared costs and learning. Related benefitsinclude access to:Û a network of CSP project developers,Û technical assistance across a range of issues
from compatibility of CSP to utility capital ex-pansion plans to design of bid packages,
Û project development know-how and invitationsto periodic lessons-learned workshops,
Û assistance in identifying necessary supportivepolicies and in identifying and securing subsi-dies, and
Û a dedicated team of problem solvers to expe-dite the movement of CSP projects from con-ception to financial closing and plant start-up.
An Interim Management Team has been esta-blished consisting of Rainer Aringhoff and GeorgBrakmann of ESTIA, Michael Geyer of IEA Solar-PACES, Tewfik Hasni of New Energy Algeria,(NEAL), Fred Morse and John Myles of SEIA, KevinNassiep of South African Energy Ministry, and RolfSeifried of KfW. Their immediate tasks include:1_Achieve an endorsement of the GMI, by thegovernments of the conference participants, withthe support of the IEA SolarPACES ImplementingAgreement, the German Federal Ministry for theEnvironment (BMU), US Department of Energy andthe conference participants, prior to the Renewables2004 Conference in Bonn, Germany, June 1-4, 2004.2_Cultivate support for and raise awareness of GMIby addressing politicians in the respective countriesprior to the Bonn Conference.3_Secure the endorsement and participation of theGlobal Environment Facility, UNEP and other majormultinational organizations.4_Develop a refined road map based on the con-cept of the regional strategies, laid down above,for implementing the 5,000 MWe of CSP by 2015.
The objective is to receive a mandate at the Re-newables 2004 Conference in Bonn for the imple-mentation of the CSP GMI. The mandate shouldinclude a strong commitment by the governmentsof the interested CSP countries to adapt or imple-ment their energy policies in a way to accommo-date the main elements of the GMI.
In order to represent the participating countries,states, multi- and bi-lateral financial institutions andthe CSP industry, an Executive Committee will beformed reflecting the interests of the stakeholdersand the participating countries and states. ThisExecutive Committee will supervise a GMI Mana-gement Team, approve a budget for its operationand help secure that budget. Financing for the GMIManagement Team should be provided by partici-pating countries and the CSP industry, augmentedby multi- and bilateral financial commitments.
Benefits of the GMI
Next steps and Organization
14
Û T h e Pa l m S p r i n g s Pr oto c o l f o r a C o n c e n t r at i n g S o l a r Po w e r G lo b a l M a r k e t I n i t i at i v e
Protocol
The Palm Springs Protocolfor a Concentrating Solar PowerGlobal Market Initiative
At the First International Executive Concentrating Solar Power(CSP) Conference held in June 2002 in Berlin, Germany, strategiestowards the rapid and large-scale market implementation of CSP were defined and summarized in the Declaration of Berlin,which was registered as a UNEP Market Facilitation WSSD Type-IIPartnership for CSP Technologies. At the Second InternationalExecutive CSP Conference held in October 2003 in Palm Springs,California, a Global Market Initiative was developed.
The Palm Springs Conference participants concluded that:
1. The solar resource necessary for CSP technologies is widelyavailable around the world and an increasing number of countrieswish to develop it.
2. Many economic and environmental benefits will accrue fromdeveloping this resource.
3. CSP addresses many of the world’s most pressing issues, suchas economic development, energy security, energy independence,rural grid expansion, socialization, climate change, air and waterquality and long-term price stability.
4. Solar thermal power plants, which make use of CSP technologies,have the capability to meet a significant percentage of the futureglobal electricity demand without technological, economic, or natural resource limitations.
5. Due to the “fuel-saving” solar field investment, the initial capitalcosts for CSP plants are higher than the initial cost of conventionalpower plants, which purchase their fuel over time at uncertain prices. Reconciling this, independent studies predict that the costof CSP power will be fully competitive with fossil-based poweronce 5,000 MW of new CSP capacity has been installed.
6. A Global Market Initiative is needed to level the playing fieldfor CSP technologies.
1. We, the participants in the Palm Springs Conference, agree toform a collaborative effort to be known as the CSP Global MarketInitiative with the goal of deploying 5,000 MW of CSP power by2015. Countries and States that wish to develop solar energyresources are invited to participate in this initiative.
Whereas
Therefore
side_1
15
The Palm Springs Protocolfor a Concentrating Solar PowerGlobal Market Initiative
2. The objective of this initiative is to help create the conditionsconducive for new CSP plants and to expedite their deployment.
3. The following elements are considered to be essential to achieve the stated Global Market Initiative goal:– Set targets for commercial, utility-scale CSP plants in each
region, state and/or country.– Establish policies and procedures in each region, state and/or
country to secure cost-covering tariffs and/or bankable powerpurchase contracts or equivalent mechanisms to allow CSPplants to be financed and to avoid limitations on CSP plants thatmake them more costly
– Multi- and bi-lateral financing institutions should support measures to make cross-country CDM, JI and related mechanismsbankable, and they should include CSP in their programs.
– Assist utilities in understanding how CSP might be integratedinto their capital expansion plans and facilitate the process ofbringing buyers of electricity and developers of CSP plantstogether.
4. The IEA Solar PACES Implementing Agreement has endorsedthe GMI and is fully supporting it. The endorsement by theGlobal Environment Facility, UNEP and other major multinationalorganizations is anticipated.
The current organizers pledge to develop a plan for the organization,structure and management, which will be submitted and adoptedprior to the Renewable 2004 Conference in Bonn, Germany.The Palm Springs participants agree that Global Market Initiativeshould have a qualified full-time management staff, which willinitially be under the umbrella of the IEA or another acceptableinternational organization.
1. Encourage sun-belt states and countries to participate in theGMI and assist and facilitate such participation as much as possible.
2. Cultivate support for, and raise awareness of, the GMI by developing marketing strategies, media approaches, etc.
3. Prepare for GMI participation in the Renewable Conference inBonn, Germany, 1-4 June 2004, and secure high-level endorse-ment to assure that a mandate for the implementation of the CSPGlobal Market Initiative is obtained.
Organization
Next Steps
side_2
Û UNIQ | Werbeagentur
Û The Concentrating Solar Power Global Market Initiative
Rainer Aringhoff
Secretary General
ESTIA
European Solar Thermal Power
Industry Association
c/o Solar Millennium AG
Neumuehle 24–26
D-91056 Erlangen
Tel.: +49 (0) 9131 750 75 21
Fax: +49 (0) 9131 750 75 22
mailto:
European Solar Thermal
Power Industry Association
Dr. Michael Geyer
Executive Secretary of the
IEA SolarPACES
Implementing Agreement
Avenida de la Paz 51
E-04720 Aguadulce
Spain
Tel.: +34 - 950 34 98 46
Fax.: +34 - 950 34 31 12
e-mail:
www.solarpaces.org
Solar
Frederick H. Morse
Chairman
SEIA
U.S. Solar Energy Industries
Association
Solar Thermal Power Division
1808 Corcoran Street, NW
Washington, DC 20009 USA
Tel.: +1-202-483-2393
Fax: +1-202-265-2248
e-mail:
Federal Ministry for theEnvironment, Nature Conservationand Nuclear Safety
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