SET-Plan - SOLAR THERMAL ELECTRICITY
EUROPEAN INDUSTRIAL INITIATIVE (STE-EII)
IMPLEMENTATION PLAN 2013-2015
12 December 2013
Approved by the SEII Team
European Solar Thermal Electricity Association
2 Solar Industrial Initiative for STE – Implementation plan 2013-2015
INDEX
INDEX ....................................................................................................................................... 2
GLOSSARY ................................................................................................................................ 4
INTRODUCTION ........................................................................................................................ 6
I – ACHIEVEMENTS IN R&D SINCE THE BEGINNING OF THE SET-PLAN (2007) ........................... 8
1. THE TECHNOLOGY ROADMAP FOR SOLAR THERMAL ELECTRICITY ....................................................... 8
OBJECTIVE 1: REDUCTION OF GENERATION, OPERATION AND MAINTAINANCE COSTS ...................................... 8
OBJECTIVE 2: IMPROVEMENT OF OPERATIONAL FLEXIBILITY AND ENERGY DISPATCHABILITY ............................. 9
OBJECTIVE 3: IMPROVEMENT OF THE ENVIRONMENTAL FOOTPRINT ........................................................... 10
OBJECTIVE 4: ADVANCED CONCEPTS AND DESIGNS .................................................................................. 10
COMMENTS ON ECONOMIC SUPPORT IN THE LAST PERIOD ........................................................................ 10
2. ANALYSIS OF RESOURCES .......................................................................................................... 11
INDUSTRY .......................................................................................................................................... 11
NATIONAL AND REGIONAL PROGRAMMES IN SPAIN ................................................................................. 11
NEIGHBOURHOOD INVESTMENT FACILITY (NIF) ...................................................................................... 12
EUROPEAN INVESTMENT BANK (EIB) .................................................................................................... 13
OTHER EUROPEAN UNION FUNDING SOURCES ....................................................................................... 14
II – PROSPECTS FOR EU INDUSTRY ......................................................................................... 17
1. IN THE EU ............................................................................................................................. 17
THE SITUATION IN SPAIN ..................................................................................................................... 17
THE SITUATION IN ITALY ...................................................................................................................... 18
THE SITUATION IN FRANCE................................................................................................................... 19
THE SITUATION IN OTHER EUROPEAN COUNTRIES .................................................................................... 19
2. OUTSIDE THE EU .................................................................................................................... 20
3. OTHER INITIATIVES .................................................................................................................. 21
III – THE STE EUROPEAN INDUSTRY INITIATIVE ...................................................................... 23
1. R&D PROJECTS ...................................................................................................................... 23
INCREASE EFFICIENCY AND REDUCE COSTS .............................................................................................. 23
INCREASE DISPATCHABILITY .................................................................................................................. 25
IMPROVE THE ENVIRONMENTAL PROFILE ................................................................................................ 26
LARGE TEST FACILITES FOR CONCEPT VIABILITY ........................................................................................ 26
2. INNOVATION IN FUTURE STE PLANTS IN SOUTHERN EUROPE........................................................... 28
3. INNOVATIONS IN FUTURE COMMERCIAL PROJECTS DEVELOPED BY EUROPEAN COMPANIES IN THIRD
COUNTRIES ............................................................................................................................... 31
European Solar Thermal Electricity Association
3 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
IV BUDGET SUMMARY ........................................................................................................... 35
V KEY PERFORMANCE INDICATORS ........................................................................................ 37
VI RELATIONS WITH OTHER INDUSTRIAL INITIATIVES ............................................................ 40
1. THE EUROPEAN ELECTRICITY GRID INITIATIVE (EEGI) ..................................................................... 40
2. THE STORAGE TECHNOLOGY ROADMAP ...................................................................................... 40
3. THE ROADMAP ON TURBOMACHINERY 2014-2020 ...................................................................... 40
European Solar Thermal Electricity Association
4 Solar Industrial Initiative for STE – Implementation plan 2013-2015
GLOSSARY
AFD Agence Française de Développement
CAES Compressed Air Energy Storage
CAPEX Capital Expenditure
CCS Carbon Capture and Storage
CSP Concentrated Solar Power
DII Desertec Industrial Initiative
DNI Direct Normal Irradiation
EASE European Association for the Storage of Energy
EEGI European Electricity Grid Initiative
EERA European Energy Research Alliance
EIB European Investment Bank
EII European Industrial Initiative
ENP European Neighbourhood Policy
ERANET European Research Area Network
ESTELA European Solar Thermal Electricity Association
EU European Union
EUMENA Europe, Middle East, North Africa
HTF Heat Transfer Fluid
FiT Feed-in-Tariff
FP6 6th
Framework Programme
FP7 7th
Framework Programme
GW Gigawatt
HVDC High Voltage Direct Current
ISCC Integrated Solar Combined-Cycle
KfW Kreditanstalt für Wiederaufbau
KPI Key Performance Indicator
kWh Kilowatt per hour
LCOE Levelised Cost Of Electricity
MENA Middle East and North Africa
MoU Memorandum of Understanding
MSP Mediterranean Solar Plan
European Solar Thermal Electricity Association
5 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
MW Megawatt
MWe Megawatt of electricity
NER300 New Entrant Reserve 300
NIF Neighbourhood Investment Facility
OPEX Operating Expenditure
PPA Power Purchase Agreement
R&D Research and Development
RES Renewable Energy Sources
SEII Solar European Industrial Initiative
SET-Plan Strategic Energy Technology Plan
SRA Strategic Research Agenda
STE Solar Thermal Electricity
TSO Transmission System Operator
UfM Union for the Mediterranean
European Solar Thermal Electricity Association
6 Solar Industrial Initiative for STE – Implementation plan 2013-2015
INTRODUCTION
In this document, a new version of the Implementation Plan of the Solar Thermal Electricity European
Industrial Initiative (STE-EII) is presented. Information on solar thermal electricity plants development in
the last few years and updates on the achievements of the objectives described in the previous
implementation plan covering the period 2010-2012 are provided as well.
The former version of this document, covering the period 2010-2012, was mainly based on the current
supporting Feed-in-Tariff (FiT) framework in Spain which resulted in more than 2,000 MW installed
representing a 70% share of the total power installed at world level.
In this sense, innovation was classified according to the type of plants, such as plants already in
operation or plants with FiT approved but in construction or promotion phase. Additionally, new
projects with ambitious objectives related to a wide deployment of STE in the MENA region were also
considered.
The budget for this innovative effort was assessed to 7,000 M€. The STE industry was expecting at that
time new financial mechanisms which would have been established as a contribution of the SET-Plan in
terms of grants, soft loans and risk sharing.
Even though the projects planned in the MENA region began to be promoted more slowly than
predicted and that the SET-Plan did not provide any new support mechanism to the industry during this
period, European companies and research centres kept on contributing to STE technological
development, with incremental improvements, benefiting essentially on the ongoing programmes in
Spain to reach the 2,300 MW of STE installed capacity by 2013, together with smaller initiatives in other
countries.
Nevertheless, the situation has drastically changed in Spain since the beginning of 2012, when the
moratorium on supports to renewable electricity generation plants has been decreed. This moratorium
includes solar thermal electricity, cutting the short term expectations on a continuous STE development
in Europe, as Spain was supposed to be the main contributor of STE power according to the National
Renewable Energy Action Plans (NREAP).
Additionally, the approval of projects with FiT in Spain was given in 2009 for projects designed in 2007
and planned to enter in operation until 2013. This unusual regulation framework did not facilitate the
progress along the cost learning curve as significant innovations could not be incorporated during this
period. Thus, only incremental innovations have been implemented in the commercial parabolic trough
plants with thermal oil, which was the selected concept in 95% of the cases as banks prefer proven
projects. Nevertheless, the first conceptually different plants, such as towers with molten salt receivers,
linear Fresnel reflectors with direct steam generation or parabolic troughs using molten salt as heat
transfer fluid, have been built.
For these reasons, the STE-EII needs a complete revision, which is the objective of this document.
European Solar Thermal Electricity Association
7 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
The fundamental guideli nes for the European Solar Thermal Electricity Implementation Plan are:
1. R&D projects in line with the priorities defined in the Strategic Research Agenda (SRA);
2. Innovations in future STE plants in southern Europe within the framework of green electricity
exchanges between Member States foreseen by the Directive 2009/28/EC on Renewable Energy
Sources. Other initiatives under purely national supporting frameworks will be considered as well;
3. Innovations in future commercial plants developed by European companies in third countries with
which the EU maintains cooperation agreements.
This document is based on these three points, with the confidence that the SET-Plan will be able to bring
new financial supporting tools and institutional endorsement to make it possible.
Puerto Errado 1 plant, Linear Fresnel Technology, Murcia, Spain (NOVATEC)
European Solar Thermal Electricity Association
8 Solar Industrial Initiative for STE – Implementation plan 2013-2015
I – ACHIEVEMENTS IN R&D SINCE THE BEGINNING OF THE SET-
PLAN (2007)
1. The Technology Roadmap for Solar Thermal Electricity
The Technology Roadmap1 elaborated in 2009 dedicates a chapter on the EII for Solar Thermal
Electricity. This chapter defined the actions to be undertaken for each of the four objectives listed
below. An analysis of the achievements of these objectives is done here:
OBJECTIVE 1: REDUCTION OF GENERATION, OPERATION AND MAINTAINANCE
COSTS
Topics Achievements
1.1 Development and test of new components with
increased efficiency and reliability (high temperature
joints, new collector designs, improved absorber tubes,
new reflector solutions, improve pumps and valves,
improved the power block and instrumentation)
Incremental improvements in all these
identified elements have been achieved so
far.
1.2 Decrease the heat losses in the receiver New coatings and absorber designs have
been developed.
1.3 Reduction of optical losses by increased mirror
reflectivity and improved receiver absorption
Both mirror reflectivity and absortivity have
been slightly increased.
1.4 More efficient cycles and receivers:
– high efficiency air receivers
– high pressure, high efficiency steam receivers
Improvements on steam turbines have been
implemented. Molten salt receivers have
been developed and research in steam and
air receivers is going on.
1.5 Operation with heat transfer fluids at higher
temperatures
This has been achieved in STE tower plants
and in the Archimede molten salt parabolic
trough plant.
1.6 Development and testing of new, more economic
components i.e. high temperature joints, absorber
tubes, new reflector solutions and collector design,
pumps and power blocks, as well as heat transfer fluids
Important reductions on component costs
have been achieved as the result of new
designs and scale factors.
1 SEC(2009) 1295 of 7 October 2009, Commission Staff Working Document, accompanying document to
the Communication on ‘Investing in the Development of Low Carbon Technologies (SET-Plan)’ - A
Technology Roadmap.
European Solar Thermal Electricity Association
9 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
1.7 Identification, development and assessment of
alternative heat transfer fluids with lower costs, low
environmental impact and a wide operation range
Research on substitution of thermal oil by
salt, steam or gas is going on. New
stoichiometries for molten salts are being
studied.
1.8 Optimize and improve the monitoring and
communication technologies for the control, operation
and maintenance of STE power plants, as well as
developing operation strategies and prediction tools to
better facilitate grid integration.
Companies did a great effort on forecasting
and improvement of control systems to
optimize the operation with good results.
OBJECTIVE 2: IMPROVEMENT OF OPERATIONAL FLEXIBILITY AND ENERGY
DISPATCHABILITY
Topics Achievements
2.1 New and improved concepts and materials for heat
energy storage and heat transfer systems will be
developed and tested (transfer fluids, filler materials,
change of phase systems, molten salts, ultra
capacitors, etc.) and implemented in large-scale
demonstration plants
The molten salt two-tank concept has
demonstrated total reliability. Other concepts
like single tank with integrated heat exchanger
or phase change concepts are in prototype
phase.
2.2 New process design and operating modes No significant achievements in this respect
2.3 Hybridisation of solar energy with other renewable
energy sources (mostly biomass)
One large commercial plant is already in
operation. The first 22 MW commercial plant
50% solar/50% biomass was connected to the
grid in the province of Lerida (Spain) in
December 2012 (see picture below).
2.4 Development of control systems for monitoring
the consumption curves
Great attention is being paid to reduction of
auxiliary consumptions.
Borges Termosolar plant, biomass unit, Lleida, Spain (ABANTIA)
European Solar Thermal Electricity Association
10 Solar Industrial Initiative for STE – Implementation plan 2013-2015
OBJECTIVE 3: IMPROVEMENT OF THE ENVIRONMENTAL FOOTPRINT
Topics Achievements
3.1 New approaches to reduce water
consumption, e.g. through innovative use of an
organic Rankine cycle coupled with conventional
steam cycle
No new conceptual approaches to reduced water
consumption have been implemented. All efforts
are focused on alternative cooling systems.
3.2 Develop and demonstrate dry cooling systems Some commercial plants have already used dry
cooling systems.
3.3 Develop and demonstrate STE-specific
sustainable water desalination and purification
processes
The MATS project (desalination unit coupled with
a STE pilot plant) can be mentioned in this regard.
3.4 Integration of low-polluting materials The focus is on the substitution of the classic HTF
oil in parabolic trough plants. Molten salts, Direct
Steam Generation and compressed gasses can be
mentioned in this regard.
3.5 Better utilisation of available land through
new design strategies
Some advances have been achieved in the design
of more compact heliostat fields by disregarding
the staggered configuration in the rows close to
the tower.
OBJECTIVE 4: ADVANCED CONCEPTS AND DESIGNS
A longer term R&D programme aimed at supporting
the longer term STE industry development (beyond
2020) will focus on advanced concepts and systems,
as well as innovative approaches to the critical
major components
The Strategic Research Agenda (SRA) of ESTELA
is the first attempt to achieve this goal. The
contribution to the Horizon 2020 programme
will be highly appreciated.
COMMENTS ON ECONOMIC SUPPORT IN THE LAST PERIOD
Regarding investments in innovation, the previous version of the STE-SEII was elaborated relying on the
implementation of new financing mechanisms (grants, soft loans and risk sharing mechanisms) under
the umbrella of the SET-Plan.
As this has not been the case, it is not possible to compare with the investment figures of the previous
version of the STE-EII document.
The total investment for the construction of the 50 STE plants in Spain was close to 14,000 M€ in the
period 2009-2013. The financial effort for innovation during this period has been mainly provided by the
companies to perform incremental improvements on the 50 commercial plants constructed in Spain.
The total cost of this effort can be estimated to be 500 M€.
European Solar Thermal Electricity Association
11 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
In addition, companies and research centres have jointly or independently carried out R&D projects
under the umbrella of Regional, National or European frameworks. A roughly estimation of this effort
would be 1,000 M€.
2. Analysis of resources
INDUSTRY
During the last three years, many efforts coming from private investors have led the STE sector in Spain
and Germany to take off and brought to the commercial playground the numerous plants currently
connected to the grid. These private resources triggered the expansion of the market and allowed the
setup of innovative plants, such as the advanced configuration of Gemasolar or PS10 for instance.
Unluckily, governmental measures went on and dealt a severe blow to the sector.
NATIONAL AND REGIONAL PROGRAMMES IN SPAIN2
NATIONAL:
The Renewable Energy Plan:
The Renewable Energy Plan (PER) 2011-2020 sets out a series of proposals aiming to boost the RES
sector in Spain. Among them are the establishment of supportive legal frameworks, the development of
energy infrastructures and actions for planning, promotion, information and training. From a
technological point of view, components manufacturing, improvement of storage systems and
hybridisation with other technologies allowing a reduction of costs and a secure penetration of the solar
thermal sector in the electric system are the main keys. The document imposes the objective of
reaching 2,521 MW of STE installed capacity in 2013 and 4,800 MW in 2020.
The National Plan for Scientific Research, Development and Technological Innovation 2013-2016:
This is a tool used by the Spanish system related to Science, Technology and Industry to comply with the
objectives and priorities of the Spanish R&D policy in the mid-term. It introduces the basic principles for
R&D actions - putting all R&D activities available to citizens, improving industrial competitiveness and
promoting R&D - as a basis for generating knowledge. In relation to energy, the objective is to develop a
sustainable system supplied with indigenous resources.
Call for Innovative Projects from the Ministry of Industry, Trade and Tourism:
In 2010, the Spanish Ministry published a call for innovative STE projects. The plants belonging to the
approved projects should begin to put electricity into the grid between January 2014 and July 2015.
2 Identificación de las principales líneas de investigación en el sector de la electricidad termosolar,
Plataforma Tecnológica de la Energía Solar Térmica de Concentración, Solar Concentra, 2012
European Solar Thermal Electricity Association
12 Solar Industrial Initiative for STE – Implementation plan 2013-2015
Among the proposals for big scale plants, the 50 MW plant Alcázar, presented by Solar Reserve (United
States) and Preneal (Spain) has been approved. To date, no small installation has been retained.
REGIONAL:
In Andalusia, a programme for promoting industrial innovation and development has been launched.
This incentive is financed by the ‘Global Subvention Innovation-Technology-Industry’ of Andalusia 2007-
2013, co-financed by the European Regional Development Fund (ERDF) and incorporated in the ERDF
operative programme of Andalusia 2007-2013, ending on 31 December 2013.
NEIGHBOURHOOD INVESTMENT FACILITY (NIF)3
Officially launched in May 2008 and implemented by the Europe Aid Development and Cooperation
Directorate-General of the European Commission, the Neighbourhood Investment Facility (NIF) is an
innovative financial instrument of the European Neighbourhood Policy (ENP), whose primary objective is
to finance with a mix of grants and loans key infrastructure projects in the transport, energy, social and
environment sectors, as well as to support private sector development in the Neighbourhood Region.
The NIF is aimed at creating a ‘partnership’, pooling together grant resources from the EU Budget and
the EU Member States and using them to leverage loans from European Finance Institutions as well as
own contributions from the ENP partner countries. Accordingly, to receive a grant contribution from the
NIF, a project must be financed by an eligible European Finance Institution.
3 Taken from the Operational Annual Report 2011 on the Neighbourhood Investment Facility, European
Commission (http://ec.europa.eu/europeaid/where/neighbourhood/regional-
cooperation/irc/documents/annual_report_2011_nif_en.pdf)
Virtual aerial view for the Ouarzazate
Solar Complex, Morocco (ACWA
POWER)
Credits: MASEN
European Solar Thermal Electricity Association
13 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
The first phase of the Ouarzazate Solar Plant in Morocco will benefit from this programme:
This project is the first phase of the Moroccan Solar Plan launched in November 2009 with the objective
to develop solar power generation and related local industry with a target capacity of a minimum of
2,000MW to be installed by 2020. This initial project concerns the development of a 500 MW solar
power complex (both STE and PV) located approximately 10 km Northeast of Ouarzazate. The NIF (grant
of 30 M€), together with loans from EIB (loan of 100 M€), AFD (loan of 100 M€) and KfW (loan of 115
M€), co-finances the initial investments aiming at building a STE plant with a production capacity
between 125 and 160 MW using parabolic trough technology. This is the largest energy project
(estimated total cost of about €630 million4) so far co-financed by the NIF in the Southern
Neighbourhood. It is fully in line with the NIF strategic objectives and falls within the Mediterranean
Solar Plan.
The tender of the project has been awarded to a Consortium led by the Saudi company ACWA Power
with a minor participation of the Spanish companies Aries and TSK. The Engineering Procurement
Construction (EPC) of the plant is carried out by ACCIONA, SENER and TSK, a consortium of Spanish
companies.
EUROPEAN INVESTMENT BANK (EIB)
The EIB provided loans for the following projects:
Before 2012: After 2012:
- Andasol I and II (2 x 50 MW), Spain: 230 M€ - Ouarzazate I (Parabolic Trough): Morocco: 100 M€5
- PS10 – PS20 (11 and 20 MW), Spain: 80 M€ - Khi Solar One Project (Central Receiver) , South Africa: 50 M€
- Solnova I and III (2 x 50 MW), Spain: 110 M€
- Gemasolar (17 MW), Spain: 90 M€
- Ashalim Solar Thermal Plant (Central Receiver), Israel: 150 M$ -
currently under appraisal
4 http://phys.org/news/2013-05-morocco-solar-mega-project-ouarzazate.html
5 See chapter ‘Neighbourhood Investment Facility (NIF)’
SOLUGAS central receiver in operation, Sevilla, Spain
(ABENGOA)
European Solar Thermal Electricity Association
14 Solar Industrial Initiative for STE – Implementation plan 2013-2015
OTHER EUROPEAN UNION FUNDING SOURCES
NER300
The NER300 funding programme was adopted with Commission Decision C(2010)7499 for the financing
of commercial CCS and innovative renewable energy technologies demonstration projects, under the
scheme for greenhouse gas emission allowance trading established by the Directive 2003/87/EC.
The NER300 programme has selected four STE projects:
- HELIOS POWER (Parabolic Dishes), Cyprus
- MAXIMUS (Parabolic Dishes), Greece
- MINOS (Central Receiver), Greece
- PTC50-Alvarado (Central Receiver), Spain
However, most likely the Spanish project (50 MW hybrid tower plant, with molten salt and biomass
hybridisation) will not be constructed as the FiT system is not in place anymore. The other projects still
need to reach financial closings which might be not so easy under the current circumstances in these
countries.
R&D projects:
� Ongoing in FP7
- BIOSTIRLING-4SKA (A cost effective and efficient approach for a new generation of solar dish Stirling
plants based on storage and hybridisation)
- COMETHY (Compact Multifuel-Energy To Hydrogen converter)
- CSP2 (Concentrated solar power in particles)
- HITECO (New solar collector concept for high temperature operation in CSP applications)
- HYSOL (Innovative configuration for a fully renewable hybrid CSP plant)
- MACCSOL (The development and verification of a novel modular air cooled condenser for enhanced
concentrated solar power generation)
- OMSOP (Optimised Microturbine Solar Power system)
- OPTS (Optimisation of a thermal energy storage system with integrated steam generator)
- RESTRUCTURE (Redox materials based structured reactors/heat exchangers for thermo-chemical heat
storage systems in CSP plants)
- SOL2HY2 (Solar To Hydrogen Hybrid Cycles)
- STORRE (High temperature thermal energy storage by reversible thermochemical reaction)
- TCSPOWER (Thermochemical energy storage for CSP plants)
European Solar Thermal Electricity Association
15 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
� Past projects in FP7
- E2PHEST2US (Enhanced energy production of heat and electricity by a combined solar thermionic-
thermoelectric unit system)
- MED-CSD (Combined solar power and desalination plants: technico-economic potential in
Mediterranean partner countries)
� Past projects in FP6
- DISTOR (Energy Storage for Direct Steam Solar Power Plants)
- ECOSTAR (European Concentrated Solar Thermal Road-Mapping)
- EURODISH (Reducing the cost of dish Stirling systems)
- HYDROSOL II (Solar Hydrogen via Water-Splitting in Advanced Monolithic Reactors for Future Solar
Power Plants)
- SOLFACE (High Flux SOLar FACilities for Europe)
- SOLHYCARB (Hydrogen from solar thermal energy: high temperature solar chemical reactor for co-
production of hydrogen and carbon black from natural gas cracking)
- SOLHYCO (Solar-Hybrid Power and Cogeneration Plants)
- SOLREF (Solar Steam Reforming of Methane Rich Gas for Synthesis Gas Production)
Demonstration projects:
� Ongoing in FP7
- ARCHETYPE SW550 (Demonstration of innovating parabolic solar trough using an alternative heat
transfer fluid producing electricity and fresh water: ARChimede Hot Energy TYPology Enhanced Water
Solar 550)
- MATS (Combined production of heat and power from solar source, in a modular, multipurpose facility
to deploy in Egypt)
- SOLUGAS (Solar-hybrid power system with direct solar heating of a gas turbine pressurized air)
� Past projects
Andasol
PS10
Solar Tres
Additional projects:
- SOLAR-ERA.NET: this is an FP7 tool to step up the coordination between national and/or regional
research programmes. The first call has been initiated; priority topics are in line with the SEII objectives,
covering both STE and photovoltaic technologies.
- The Integrated Research Programme (IRP): this is an FP7 tool that brings together programmes of a
critical mass of research performers from different countries to advance the longer term research
agenda of the SET-Plan. The IRP allows performers of research programmes to develop synergies and
European Solar Thermal Electricity Association
16 Solar Industrial Initiative for STE – Implementation plan 2013-2015
complementary capabilities and to increase the potential for innovation. STAGE-STE is a STE-related IRP
due to start on 1 February 2014. ESTELA is a partner of the project.
- The ‘Solar Facilities for the European Research Area’ (SFERA) is a project of the European Commission
within the frame of the FP7. It aims to boost scientific collaboration among the leading European
research institutions in solar concentrating systems, financing networking activities, allowing any STE
player (including industry) to benefit from R&D infrastructures through yearly access. Summer trainings
on technical topics are also organized every year. The second round ‘SFERA II’ begins in January 2014
and will last 4 years.
- The European Strategy Forum on Research Infrastructure (ESFRI): this is a strategic instrument to
develop the scientific integration of Europe and to strengthen its international outreach. The EU-
SOLARIS project (the European Research Infrastructure for Concentrated Solar Power) began its running
phase in the end of 2012 and will last 4 years. ESTELA is a partner of the project and is responsible for
the part related to the industry.
- RES4LESS (Cost-efficient and sustainable deployment of renewable energy sources towards the EU 20%
target by 2020, and beyond) and BETTER (Bringing Europe and Third countries closer together through
renewable Energies) started in 2011 and 2012 respectively under the European Union’s Intelligent
Energy Europe Programme and are sponsored by the Executive Agency for Competitiveness and
Innovation (EACI). They aim to develop a Roadmap to a cost effective deployment of RES in the period
up to 2020 and 2030 by making use of cross-border cooperation mechanisms, as described in the
Renewable Energy Directive.
Gemasolar plant: Central Receiver Technology, Sevilla, Spain (TORRESOL)
European Solar Thermal Electricity Association
17 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
II – PROSPECTS FOR EU INDUSTRY
1. In the EU
In Europe, compulsory RES targets have been established in 2010 through the National Renewable
Energy Action Plans (NREAPs) for 2020. The plans include the use of STE for the sunniest European
countries. The initial total amount of STE installed capacity was estimated at 7,000 MW, but the current
economic situation and the indicative trends have prompted some countries to revise their estimates.
An indicative description of the targets is shown in the map below.
Nevertheless, implementing “statistical transfers” among Member States as these are considered in the
RES directive would allow for achieving higher figures.
Map of planned STE capacity in European countries by 2020
THE SITUATION IN SPAIN
The Spanish market is the leader in Europe: today, 45 plants are connected to the grid and 5 more will
be completed in 2013. Especially, half of them have installed a storage system. The projects have been
approved in 2009 with the FiT applicable at that moment, although their construction and operation
were scheduled by the Spanish Ministry over a four-year period. This is the reason why STE plants in
Spain could not experience any learning curve, keeping the retribution prices for the 50 Spanish plants
stable since 2009 (around 30 c€/kWh). Those costs still correspond to old projects with components
purchased many years ago, with low relative irradiation and with a plant size much smaller than the
ideal size. It is, thus, not possible to consider this cost as representative of the real cost of solar thermal
electricity for new projects, be they in Spain or elsewhere.
The Spanish government has recently established a set of retroactive measures implying 1/3 reduction
of incomes, making it difficult for the plants to reimburse their debts to the banks. These legal measures
have been preventing the possibility to dedicate resources to innovation and to the internationalisation
European Solar Thermal Electricity Association
18 Solar Industrial Initiative for STE – Implementation plan 2013-2015
of STE Spanish companies. Because of this, the leading position held by European companies in the
sector until now may be lost in a very short period of time.
Those actions from the Spanish government have been put into question by the EU but with no practical
effect. The claims from the EU brought to the Permanent Court of Arbitration will last a few more years
before getting to conclusions. Not only will this lead to putting the STE sector at risk in Spain, but this
will also give a bad reference that could contaminate other European countries and cause a huge
prejudice in the accomplishment of the objectives of the Renewable Energy Directive.
THE SITUATION IN ITALY
In Sicily, an innovative project (Archimede plant) was built. This is a parabolic trough plant, which uses
molten salts as heat transfer fluid to generate steam subsequently injected in an existing combined
cycle power station. The plant has a molten salts thermal storage of eight hours and the equivalent
power of this facility is 5 MWe.
Additionally, the Italian government revised the old FiT regulation and replaced it with a more attractive
one, with incentives available up to a maximum of 2.5 million m2 of reflective surface. This Decree dated
July 2012 sets the FiT value between 27 and 32 c€/kWh for large plants (> 2,500 m2 aperture) and
between 30 and 36 c€/kWh for smaller plants (< 2,500 m2 aperture). This support will be reduced by 5%
in 2015 and by another 5% of the last value in 2016. Some conditions are imposed on the heat transfer
fluid and on the thermal storage size. This new incentive allows the hope for the development of a
sufficient number of projects in the coming years in order to reach approximately 200 MW of installed
capacity.
Archimede plant: Parabolic Trough Technology, Sicily, Italy (ENEL)
European Solar Thermal Electricity Association
19 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
THE SITUATION IN FRANCE
In France, there is no FiT system for STE. The projects are processed through invitation to tenders. At the
moment, two plants have been approved and are on their way for construction:
- Alba Nova 1 is a 12 MW STE plant promoted by the company ‘Solar Euromed’. This plant is situated in
Corsica Island and relies on the linear Fresnel reflectors technology, combining direct steam generation
and thermal storage. ‘Akuo Energy’, an independent renewable energy developer, and the French
Deposit and Consignment Office are partners and bring a financial support to the project. A guaranteed
tariff for its solar energy production has been awarded for 20 years.
- Another 9 MW plant also based on the Fresnel technology with a thermal storage will be built in Llo
(Pyrénées-Orientales) and operated by the company ‘CNIM’ for a period of 20 years. This solar power
plant, on a twenty-hectare site, is the industrial scale roll-out of a pilot plant that has been operating
continuously for the last two years known as the e-Care pre-industrial demonstrator. The French
Deposit and Consignment Office is a partner in this project.
THE SITUATION IN OTHER EUROPEAN COUNTRIES
Globally, the economic crisis has a large negative impact. In Cyprus, the FiT value for STE is 26 c€/kWh;
in Greece, it is 26,5 c€/kWh without thermal storage and 28,5 c€/kWh with more than 2 hours thermal
storage. Portugal is reviewing its support system and is planning small pilot facilities.
European Solar Thermal Electricity Association
20 Solar Industrial Initiative for STE – Implementation plan 2013-2015
2. Outside the EU
THE UNITED STATES
The first commercial plants in the Mojave Desert, the SEGS plants, with 350 MW are in continuous
operation since middle 80’s. These plants played a very important role in convincing the financial
institutions on the reliability of STE technology making possible the deployment in Spain. In addition,
there are some more recent plants, such as the 60 MW Nevada Solar 1 and the ISCC in Florida with a
solar field of 75 MWe equivalent.
Five STE projects are currently under construction in the southwest of the United States. After
completion, they will have a capacity of over 1,300 MW, a significant increase over the approximately
500 MW now operating.
Some other projects (for a total installed capacity close to 1,000 MW) have been announced as well,
including the corresponding PPA contracts with some utilities.
Nevada Solar One: Parabolic Trough Technology, United States (ACCIONA)
Crescent Dunes Solar Energy: Solar Tower Technology, United States (SOLARRESERVE, COBRA)
European Solar Thermal Electricity Association
21 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
EMERGING COUNTRIES
Other countries are emerging and taking initiatives to develop STE through the implementation of
national plans:
- Morocco implemented its 2 GW Solar Plan, with a first plant awarded and the others being under
preparation;
- Saudi Arabia aims at 25 GW by 2032. The first 900 MW tender is expected along 2013;
- Algeria intends to generate 40% of its energy from renewable sources by 2030;
- In Jordan the first STE projects have been qualified, although the FiT needs to be fine-tuned to
eventually build the projects;
- Qatar targets 2 GW of solar installations by 2020, including a 60% share of STE;
- South Africa aims at installing 200 MW of solar power by 2015 and 1.2 GW by 2030;
- Chile uses STE for extraction and production processes in copper mines; a plant to supply base load
to the mining industry in the North of Chile has been tendered with a grant from the Chilean
Government;
- India, through its National Solar Mission, aims to fulfil 8 GW of solar power by 2020;
- China has already 200 MW in its current pipeline and aims at 3 GW by 2020 in the framework of its
12th Five Year Plan;
- Australia initiated the first phase of its Solar Flagship Programme, targeting 250 MW of solar power
connected to the grid by 2015.
3. Other initiatives
THE MEDITERRANEAN SOLAR PLAN
The Mediterranean Solar Plan (MSP) is a flagship of the Union for the Mediterranean (UfM) initiative. It
has two goals: developing 20 GW of new renewable energy production capacities and achieving
significant energy savings around the Mediterranean by 2020, thus addressing both supply and demand.
The MSP is supported by the European Commission, who launched the technical assistance project
‘Paving the Way for the Mediterranean Solar Plan’ in 2010. Many actors are involved in this process:
MoUs were signed by the Desertec Industry Initiative and Medgrid in 2011 and by the Mediterranean
Transmission System Operators (TSO) in 2012 to foster the integration of a regional electricity market in
the long term.
A MSP Master Plan draft is currently being debated by a Joint Committee of National Experts, after
many discussions between all stakeholders (Member States, European Commission, League of Arab
States, Financial institutions, Industry, Regional and Sub-regional Platforms, etc.). The Master Plan deals
with the following key issues: developing enabling policy and regulatory frameworks; strengthening
financial support tools; upgrading transmission infrastructure systems; supporting industrial
development and job creation; enhancing capacity development and know-how transfer.
The first phase of the Ouarzazate Solar Power Plant, supported by the Neighbourhood Investment
Facility (NIF) is in line with the MSP.
In 2011, ESTELA expressed its views within the 1st
session of the MSP Technical Working Group on
Financial Issues, led by the UfM, suggesting solutions to overcome the financial gap for STE.
European Solar Thermal Electricity Association
22 Solar Industrial Initiative for STE – Implementation plan 2013-2015
Nevertheless - as explained in the following sections - it is more likely that the new projects in the MENA
region will be mainly developed under the umbrella of national programs with the support of
multilateral development banks. These projects will primarily aim to supply the increasing needs of
dispatchable electricity for domestic consumption. Therefore the MSP should be revisited to reinforce
its instrumental role in this evolving scenario.
European Solar Thermal Electricity Association
23 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
III – THE STE EUROPEAN INDUSTRY INITIATIVE
On 2 May 2013, the European Commission published the Communication on Energy Technologies and
Innovation6. This Communication underlines the importance of the SET-Plan and its Industrial Initiatives
to “reduce costs rapidly and speed up the introduction of new technologies into the market”. The
innovation strategy is put forward, bridging the gap between research through the support of the
European Energy Research Alliance (EERA) and market through the European Industrial Initiatives (EII).
The Communication states that large scale efforts in innovation should be made through regulation and
financing, and should create an investment climate conducive to more innovation investment. ESTELA’s
research strategy7 is on track with those statements, as demonstrated in the three following action
points:
1. R&D Projects8
INCREASE EFFICIENCY AND REDUCE COSTS
The different targets to reach the objective ‘Improve efficiency and reduce costs’ are listed below for
each technology. However, cross-cutting issues exist between the different technologies and need to be
taken into consideration. Specific issues concerned with small-medium plants (installed capacity < 10
MW) shall also be considered. Cost reduction in terms of civil works, and durability of components
should be addressed. The transversal research topics to be investigated are:
6 Communication on Energy Technologies and Innovation COM(2013) 253 final, Brussels, 2.5.2013
7 Strategic Research Agenda 2020-2025 for Solar Thermal Electricity, ESTELA, December 2012
8 This chapter is extracted from the Strategic Research Agenda on Solar Thermal Electricity 2020-2025,
ESTELA, December 2012
European Solar Thermal Electricity Association
24 Solar Industrial Initiative for STE – Implementation plan 2013-2015
Research topics for each typical technology plant are listed below
European Solar Thermal Electricity Association
25 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
INCREASE DISPATCHABILITY
Dispatchability is one of the characteristics making STE a favoured option among other renewable
resources. Therefore, “Improving dispatchability” is an essential objective for STE development.
Although many plants are already built with a storage system, more efforts are needed to be done.
� Integration systems:
The integration of solar heat in large steam plants can be achieved through the water preheating line
or through the boiler steam/water circuit. In the first case, an appropriate boiler design is required to
deal with temperature differences. If the integration is done with the boiler, an improvement of its
design and control system is needed.
The integration of solar heat with gas turbine or combined cycle plants is also an option. With a gas
turbine, the temperature of the air can be increased in high temperature solar collectors, leading to high
conversion efficiencies. The ability to handle transient phases requires an improvement of the design of
the control system.
The integration of solar heat with biomass, more appropriate for small sized facilities, is a good
combination for an all-renewable fuelled plant. Although the combustion of biomass is not easy, it is
possible to use organic fluid thermodynamic cycles (ORC), which simplify operation while increasing the
overall efficiency.
� Hybrid systems:
Integration with bio-conventional fuels in large plants avoids the logistic problems of the biomass.
Integration in a plant with a well balance relation between sun and the alternative fuel to achieve
flexible firm generation can be a solution to provide firmness in the system.
� Storage:
Depending on the HTF (Heat Transfer Fluid), different designs can be set up:
If the HTF is thermal oil and the capacity of the thermal storage system small, a single storage tank with
good temperature stratification instead of a two tank configuration can greatly simplify storage. A single
tank can also be optimised by a solid separation between the heat exchanger and the storage material.
If the HTF is molten salts, no exchanger is needed between the solar field and the storage circuit. New
salt mixtures with lower freezing point and which avoid corrosion problems are the research and
development goals for this topic. Molten Salts must be qualified to be compatible with the Solar field
components (e.g. receiver tubes). Optimized operation strategies including anti-freezing measures and
emergency draining concepts etc. must be developed and validated on system level.
If the HTF is steam, no exchanger is needed before the power block. Solid/liquid phase change materials
applied for saturated steam are to be investigated.
If the HTF is gas, very high temperature applications are feasible. The challenges are how to design
effective heat transfer systems and to find suitable storage materials.
In general, improved strategies for charging and discharging thermal heat are necessary to
maximise storage capacity. Concepts for thermo-chemical energy storage systems are also to be
investigated.
European Solar Thermal Electricity Association
26 Solar Industrial Initiative for STE – Implementation plan 2013-2015
� Improve forecasting:
Many solutions can be envisioned, such as elaborating a very short term forecast for variable sky
conditions, developing electricity forecasting systems to regulate and manage electricity production,
improving ground based DNI measurements, using meteorological satellite results, and improving
numerical weather prediction models for DNI forecasting, analysing its inter-annual variability and the
time and space correlation between solar and wind energy sources.
IMPROVE THE ENVIRONMENTAL PROFILE
Heat transfer fluids are of concern because of their potential impact on the environment: the pollution
from synthetic oil is one of the most common concerns. The environmental and economic parameters of
different fluids have been studied.
Heat transfer fluids versus technical, environmental and economic characteristics
Desalination is a very interesting application of solar thermal energy. Despite the drawbacks related to
the requirements for finding a site, desalination presents significant technical and economic advantages.
There are several technical solutions, such as multi-effect distillation, reverse osmosis, humidification-
dehumidification process and membrane distillation. The desalination system can also be the cooler
part of the conventional power block. Thus, the optimisation of the integrated or combined cooling
process needs to be considered as a research topic.
Reduction of water consumption (for the cooling system mainly, and also for mirror washing) should be
addressed.
LARGE TEST FACILITES FOR CONCEPT VIABILITY
In addition to the R&D lines mentioned above, support for the construction and operation of large test
facilities for high-efficiency STE systems should be considered. The definition of the most useful facilities
should be done in collaboration with EU-SOLARIS, because this project has a specific activity to identify
the new test facilities required by the STE sector.
Just as an example, we could refer to molten salt technology which can only be validated at system level
(e.g. operation concepts, protection against freezing, emergency draining). The introduction of molten
European Solar Thermal Electricity Association
27 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
salt technology directly into a first-of-its-kind parabolic trough commercial plant is hampered by the
present difficult financing conditions (investors and banks are rather risk averse). A system-scale proof is
required to reduce the risk factors for the financing of this technology.
Budget
The estimated budget and public support for the period 2013 – 2015 are given below9:
Investments Grants
Increase efficiency and reduce costs 100 M€ 60 M€
Increase dispatchability 80 M€ 40 M€
Improve environmental profile 20 M€ 10 M€
Large test facilities for concept viability 50 M€ 10 M€
TOTAL 250 M€ 120 M€
A significant part of these projects corresponds to component development, prototypes or small scale
demonstration projects. For these activities, grants will be the preferable type of support.
The support to these specific lines would be under the framework of the ‘Horizon 2020’ programme.
9 The definition of ‘Investment’ and ‘Grants’ can be found in the chapter “Budget Summary”.
European Solar Thermal Electricity Association
28 Solar Industrial Initiative for STE – Implementation plan 2013-2015
2. Innovation in Future STE Plants in Southern Europe
The Communication of the European Commission on Energy Technologies and Innovation states that the
potential of solar energy should be further exploited in cooperation with the Mediterranean Partner
Countries.
The excellent seasonal complementarity of wind resources in the North Sea and solar resources in the
South of Europe could draw a scenario in which the entire EU could be supplied at a large extent by
these two energy sources at competitive prices in the future:
A combination of off-shore wind, mainly along the coasts of the UK, The Netherlands, Germany and
Denmark, together with photovoltaic and STE plants in Portugal, Spain, Italy and Greece, would be the
foundation of the solution for providing zero-emission carbon-free electricity generation in the EU by
2050. This concept would be complemented with biomass and hydraulic energy, with a bigger
proportion in Northern countries but also in Central Europe.
This has been foreseen in the European Directive on Renewable Energy Resources, i.e. in Article 6
“Statistical Transfers”, in article 7 “Joint Projects” and in article 11 “Joint Support Schemes”.
To achieve those goals, the strengthening of interconnections between countries and the creation of
long-distance high-capacity routes that constitute the Supergrid are essential requirements. They would
guarantee electric stability all over Europe and ensure costs reduction by the incorporation of
renewable energy for generating electricity. The technology of HVDC submarine cables could allow a
faster installation of major transport lines, avoiding lengthy administrative processes for deploying land
lines.
In addition, the national management of the TSOs and the current schemes of the electric market, which
allocate the current transmission capacity on spot basis, need to be changed. A capacity reserve for
electricity exports from STE plants is absolutely necessary in order to take the decision to build the joint
projects. If a STE plant was to be built in Spain to transfer its production to Germany, it would be
necessary to secure the transmission capacity for the whole duration period of the PPA.
European Solar Thermal Electricity Association
29 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
The strategic vision of the STE-EII has to be included in the SET-Plan that should support the first STE
projects of this ambitious scheme and give the institutional support to accelerate the construction of the
Supergrid, facilitating long-term capacity reserves of STE plants in the south of Europe exporting their
production to central and northern European countries.
Projects of this type would be a good example of the recommended integrated approach on the Horizon
2020 programme. They will include not only the two countries where the electricity is generated and
consumed but the other countries in between allowing for a proper transmission. The number and type
of agents will cover the whole value chain from innovation suppliers, plant constructors and promoters
to TSOs and offtakers. The institutional support at country and European levels along with the European
Network of Transmission System Operators for Electricity will be an essential part of the project as well.
Once the first project is launched, the barriers are removed and the viability is demonstrated, the
replication effect will follow automatically.
In this action line, projects would primarily aim to achieve the following objectives:
- Increase efficiency and reduce costs
- Increase dispatchability
The preferred support mechanisms would be in this case soft loans and risk sharing.
ESTELA is ready to work with the European Commission so that a first project of this kind could be
launched before the end of 2014.
After 2014, at least one project per year could be launched. It should incorporate innovations in terms
of increased efficiency, cost reduction and increased dispatchability. The projects would have an
optimum commercial size in the range from 150 to 200 MW.
Increasing the grid network for solar thermal electricity
European Solar Thermal Electricity Association
30 Solar Industrial Initiative for STE – Implementation plan 2013-2015
Budget
The estimated budget and public support for the period 2013 – 2015 is given below10
:
Investments Soft Loans Risk Sharing Grant
Increase efficiency and reduce costs 600 M€ 200 M€ 150 M€ 25 M€
Increase dispatchability 600 M€ 200 M€ 150 M€ 25 M€
TOTAL 1,200 M€ 400 M€ 300 M€ 50 M€
Each project would likely include innovation in both topics; therefore the budget can be better
understood by considering the “Total” row.
Due to the time still required to implement this action line, ESTELA does not expect that the projects
could be constructed before 2015. Therefore the expected investments and supports have to be
considered as “committed” rather than “materialized” within the time frame of this Implementation
Plan.
The Structural Funds through the “Research and Innovation Strategies for Smart Specialization (RIS3)”
would be an ideal mechanism to support this first of its kind integrated project involving many type of
actors from several European countries.
10 The definition of ‘Investment’, ‘Soft loans’ and ‘Risk sharing’ can be found in the chapter “Budget
Summary”.
European Solar Thermal Electricity Association
31 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
3. Innovations in Future Commercial Projects Developed by European
Companies in Third Countries
STE plants will experience a rapid expansion in the countries located in the Sun Belt, not only for their
differentiated technical characteristics with respect to other variable renewable technologies
(dispatchability thanks to storage and hybridisation; and contribution to the stability of the network
thanks to a great inertial factor), but also for the significant contribution to the economy of those
countries. STE plants will provide a strong macroeconomic impact due to the high local content, which
has been proven since the first plant was built.
Moreover, if contractual formulas with sufficient guarantees are established, many foreign investors will
be attracted, resulting in a boost of the economy in these countries.
In countries with a good irradiation, it is possible to set up big STE plants with little or no public support.
Typical PPAs will be in the range of 15-16 c€/kWh for 25 years, as demonstrated in the position paper11
published by ESTELA in October 2012. These figures are close to competitiveness and allow filling in the
gap with reduced premium levels. In any case, the macroeconomic impact analysis will demonstrate to
policy makers that supporting the deployment of STE plants is a good business for the economy of their
countries.
Export of green electricity to Europe from MENA countries under Article 9 of the RES Directive offers to
these countries a great opportunity for industrial development but it has still some issues to be solved.
11 The Essential Role of Solar Thermal Electricity, a real opportunity for Europe – Position Paper, ESTELA,
Brussels, October 2012
Workers in action (courtesy of Protarget)
European Solar Thermal Electricity Association
32 Solar Industrial Initiative for STE – Implementation plan 2013-2015
Nevertheless, if these countries build STE plants for the domestic market, the presence of the European
technology is assured for the coming years.
For these reasons it is suggested to support innovation in the bids that European companies will submit
under the tendering processes. This could provide added value to the European proposals, although the
applicable formula should be thoroughly studied by the legal services.
The STE market is now emerging in countries like United States, Saudi Arabia, South Africa, Morocco,
India, Chile, United Arab Emirates, etc. The support mechanisms depend basically on the domestic
policies and the projects are awarded under competitive tendering or direct negotiation basis. Access to
soft loan lines or risk sharing lines for the projects to be constructed in those countries could play an
important role to win the projects.
In addition support to specific technologies to be applied in projects outside Europe could also provide
important advantages. This can be implemented in the form of grants to demonstration projects, either
at small scale or integrating new developments in existing STE commercial plants.
Not only would the innovations for increasing efficiency or for reducing cost be eligible, but also
environmental aspects, such as water consumption reduction. Integration of desalinated water and
electricity production could be also promoted for the first time in the world with the support of the SET-
Plan.
ESTELA has been advocating for a long time for the constitution of a company that would act as off-taker
for the electricity generated in the MENA region that would be exported to Europe. This company could
be constituted by public agencies promoting renewable energy in the different countries, for instance,
Germany, France, Italy, Spain, Morocco, Algeria, etc. It would be open to include any other country that
would support the initiative, as a producer, receiver or transferor. This company could also count on
financial guarantees from the EIB.
This off-taker company would be the first to identify the gaps to comply with the 2020 objectives in the
EU countries and would subsequently compete for the construction of a plant in a defined country
(Morocco with its current capacity for commercial exchanges of 600 MW would be suitable for the first
projects), signing a PPA for 20-25 years with the winning company.
This formula would give a solid legal security to companies investing in the new plant.
Market plans for this off-taker company, for which administration aspects would not significantly
increase the price of electricity in Europe, result to be attractive and with no excessive risks.
The operating procedure would be:
� Identify needs of supply , i .e gaps towards achieving the respective RES targets in European
countries;
� Activate the fulfillment of all administrative requirements;
� Reach price agreements in each of the EU electricity systems and/or distribution companies;
� Establish the necessary agreements with European TSOs on transport and certification;
� Reach promotional agreements with MENA countries;
European Solar Thermal Electricity Association
33 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
� Tender the plants on PPA basis;
� Sell the electricity by packages to the different customers and pay the PPA to the owner of the
plant.
The SET-Plan might contribute to make this happen with institutional support.
The projects competing at national level (e.g. Morocco, Saudi Arabia, Jordan, etc.) could receive the
support of the SET-Plan as of now.
Nevertheless, projects targeted to export electricity to Europe using the established statement of Article
9 of the RES Directive would probably have some more years before all the necessary formalities are
settled.
The STE-EII estimates that, at least two innovative projects per year could be launched.
Each plant would have an optimal commercial size, between 150 and 200 MW while for combined
electricity and water the electrical power would be in the range from 30 – 50 MW.
Aside from electricity generation and transfer, another important aspect is the setup of European
standards in terms of quality, environmental and social issues, in order to implement projects
sustainable in time and consistent with European principles. A good expertise of this new market in
third countries can increase the chances of the European industry to benefit from the market growth in
those regions and see effective R&D efforts.
Capacity building and R&D infrastructures in the third countries should be supported.
Solana power plant, United States (ABENGOA)
European Solar Thermal Electricity Association
34 Solar Industrial Initiative for STE – Implementation plan 2013-2015
Budget:
The estimated budget and public support for the period 2013 – 2015 is given below12
:
Investments Soft Loans Risk Sharing Grants
Increase efficiency and
reduce costs
1,200 M€ 400 M€ 200 M€ 25 M€
Increase
dispatchability
500 M€ 200 M€ 100 M€ 25 M€
Improve
environmental profile
200 M€ 50 M€ 40 M€ 25 M€
TOTAL 1,900 M€ 650 M€ 340 M€ 75 M€
Due to the time still required to implement this action line, ESTELA does not expect that these projects
can be achieved before 2015. Therefore the expected investments and supports have to be considered
as “committed” rather than “materialized” within the time frame of this Implementation Plan.
Each project would likely include innovation in all three topics; therefore the budget can be better
understood by considering the “Total” row.
12 The definition of ‘Investment’, ‘Soft loans’ and ‘Risk sharing’ can be found in the chapter “Budget
Summary”.
European Solar Thermal Electricity Association
35 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
IV BUDGET SUMMARY
Investments Soft loans Grants Risk Sharing
R&D projects Increase efficiency
and reduce costs
100 M€
60 M€
Increase
dispatchability
80 M€
40 M€
Improve
environmental
profile
20 M€
10 M€
Large test facilities
for concept
viability
50 M€
10 M€
Total 250 M€ 120 M€
Innovation in future
STE Plants in
Southern Europe
Increase efficiency
and reduce costs
600 M€ 200 M€ 25 M€
150 M€
Increase
dispatchability
600 M€ 200 M€ 25 M€
150 M€
Total 1,200 M€ 400 M€ 50 M€ 300 M€
Innovation in future
commercial projects
developed by
European
companies in third
countries
Increase efficiency
and reduce costs
1,200 M€ 400 M€ 25 M€
200 M€
Increase
dispatchability
500 M€ 200 M€ 25 M€
100 M€
Improve
environmental
profile
200 M€ 50 M€ 25 M€
40 M€
Total 1,900 M€ 650 M€ 75 M€ 340 M€
Total estimated budget of the STE-EII for
the period 2013-2015 3,350 M€ 1,050 M€ 245 M€ 640 M€
The resources in the table above should come from:
• Investments: Companies, own budget of technology centres
• Grants: EU Horizon 2020 programme, Member States and Regional governments, NER 300
• Soft Loans: EIB or commercial banks with new support mechanisms under Horizon 2020
• Risk Sharing: EIB or commercial banks with new mechanisms under Horizon 2020
European Solar Thermal Electricity Association
36 Solar Industrial Initiative for STE – Implementation plan 2013-2015
The Structural Funds through the “Research and Innovation Strategies for Smart Specialization (RIS3)”
could also contribute with grants, soft loans and risk sharing. Expressions of interest have been received
from the Spanish regions of Extremadura and Andalucía.
It is important to stress that new funding mechanisms should be implemented by the SET-Plan.
European Solar Thermal Electricity Association
37 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
V KEY PERFORMANCE INDICATORS
The deployment of STE plants is now starting at a wide level. Typical projects will be in the 100 MW
range and the most important parameter is the level of the PPA needed to make the project happen.
The LCOE estimate that was applied as over-arching KPI in the previous implementation plan is no
longer used in this sector (although it would still be possible to calculate it). The only real reference for
the projects which are being launched every year is today the level of the PPA. The differences between
the LCOE and the PPA are due to the fact that the PPA is not calculated for the whole life span of the
plant but for a shorter period (20 to 25 years usually). The PPA includes the promoter’s profit but no
remaining value of the installation, which will constitute the basis for the country’s economy of the most
profitable end phase of the operational life of the plant.
The PPA (or FiT in specific countries) is the value that will be accepted by the promoter and which de
facto triggers the building of the plants. This value is usually publicly known and should therefore be
tracked/monitored to see the cost reduction in this technology.
The PPA depends on many factors, some of them related to the technology (DNI and plant size) and
other factors related to financial conditions (duration, escalation factors, public support such as grants,
concessional loans, guaranty coverage, etc.). ESTELA has attempted to prepare a model where all the
specific differences will be taken into account in order to compare the real cases at world level and to
track the cost reduction in the future.
The standard reference project has been defined as: 150 MW, 4 hours storage plant, with fixed 25 year
PPA (no escalation) and without any kind of public support (no grants, no soft loans, etc.). The CAPEX for
this typical plant is currently in the range of 550 million €.
Given the current CAPEX, the estimated OPEX - where there are still some differences among the plants
- and the efficiency, the resulting PPA will mainly depend on the solar resource on site (DNI).
European Solar Thermal Electricity Association
38 Solar Industrial Initiative for STE – Implementation plan 2013-2015
The result of this analysis13
along with the estimations of the Industry on cost reduction is the following:
PPA14
in c€/kWh 2013 2015 2020
DNI 2050 (kWh/m2/year) 19 16 12
DNI 2600 (kWh/m2/year) 16 13 10
The reference parameters for a typical STE plant are:
STE Reference System for 2010 Update for 2013
DNI 2050 kWh/m²/year
Plant capacity 150 MW, 4 hours Storage
Capital investment cost 5,000 €/kW 3,800 €/kW
O&M costs (in percentage of
investment costs)
2%
Capacity factor 37%
PPA duration 25 years
Baseline for PPA in 2010 21 c€/kWh 19 c€/kWh
13 The Essential Role of Solar Thermal Electricity, a real opportunity for Europe – Position Paper, ESTELA,
Brussels, October 2012
14 The PPA is the first key performance indicator, referred as KPI-1 in the table on next page
European Solar Thermal Electricity Association
39 Solar Industrial Initiative for STE – Implementation Plan 2013-2015
A breakdown of KPIs can be seen below:
Description Metric BASELINE TARGETS
2010 2015 2020/2025
Overarching KPI KPI-1 PPA See values on previous page
1. Increase efficiency and
reduce costs
KPI-2 Increased solar-to-electricity conversion efficiency
15% Trough
8.5% Fresnel
17% Dish
12.5% Tower
(relative to baseline)
+5% Trough
+15% Fresnel
+15% Dish
+50% Tower15
(relative to baseline)
+20% Trough
+30% Fresnel
+30% Dish
+65% Tower
KPI-3 Increase HTF Temperature 400°C Trough
280°C Fresnel
650°C Dish
250°C Tower
560°C Tower
420°C Fresnel
>500°C Trough
500°C Fresnel
>900°C Dish
>900°C Tower
KPI-4 Reduce cost of installed
products and O&M for state-
of-the-art commercial plants
2% of CAPEX -10% -20%
KPI-5 Reduce power block costs
(Rankine cycle)
1,300 €/kWp
Trough with thermal oil
1,300 €/kWp Molten
Salt as HTF
1,000 €/kWp
Hybrid plant
1,200 €/kWp Advanced
HTF
800 €/kWp
Advanced hybrid plant
KPI-6 Reduce collector costs 250 €/m2
Trough with thermal oil
250 €/m2
Molten Salt or
Hybrid plant
200 €/m2
Advanced hybrid plant
KPI-7 Reduce the specific cost of the HTF system
330 €/kWth
Trough with thermal oil
295 €/kWth Molten Salt
as HTF
165 €/kWth
Hybrid plant
120 €/kWth Advanced
HTF
100 €/kWth
Advanced hybrid plant
2. Improve dispatchability
[Figures concerning
storage are based only on
molten salt technology].
KPI-8 Investment cost of storage 35,000 €/MWhth 20,000 €/MWhth 15,000 €/MWhth
KPI-9 Increase efficiency of storage
94% 96%
3. Improve the
environmental profile
KPI-10 Substantial reduction of water
consumption with only minor
loss of performance relative to
current water cooling system
3.5 liters/kWh < 1 liter/kWh
15 After Gemasolar breakthrough
European Solar Thermal Electricity Association
40 Solar Industrial Initiative for STE – Implementation plan 2013-2015
VI RELATIONS WITH OTHER INDUSTRIAL INITIATIVES
1. The European Electricity Grid Initiative (EEGI)
The specific relation to the grid initiative stems from the fact that STE power plants with thermal energy
storage are able to deliver a reliable contribution to ancillary services (essentially voltage control and
reactive power). To that extent, STE power plants should and will be able to comply with the ENTSO-E
Network Code for Requirements for Grid Connection.
The objective of a coordination with the EEGI should be to determine whether the development of CSP
technologies further strengthens the use of energy storage to increase dispatchability, and enable them
to operate much like “standard thermal power plants”. A joint study with the EEGI would involve
planning and operation simulations to set development specifications for grid integration of STE plants.
The questions at stake are more specifically as follows:
1. Can STE power plants meet the demand at any time, day and night, and supply electricity at peak
hours according to planned schedule?
2. Do STE plants have the capability to offer primary, secondary and tertiary reserves?
This study may then specify one large scale experiment to validate the energy and network value. The
need for such a demonstration, its expected benefits and its costs need to be evaluated jointly by the
EEGI and the SEII.
STE plants with thermal energy storage could well be hybridized into combined solar plants with PV
plants where PV would deliver power during sun hours while STE plants would take over power
generation independently of the day time, responding thus to TSO operating needs.
2. The Storage Technology Roadmap
Thermal storage is of utmost importance to develop and expand STE. ESTELA contributed to the working
group in charge of drafting the ‘European Energy Storage Technology Development Roadmap towards
2030’ developed by EASE and EERA.
3. The Roadmap on Turbomachinery 2014-2020
EUTurbines released a ‘Roadmap on Turbomachinery, enabling new energy technologies under Horizon
2020’. The document includes a 4-page chapter dedicated to STE, gathering R&D efforts needed in
terms of costs and new concepts. Synergies can be found with the research topics listed in the ESTELA
Strategic Research Agenda.
European Solar Thermal Electricity Association – ESTELA a.s.b.l.
Renewable Energy House
Rue d'Arlon 63-67
B-1040 Brussels
Belgium
T: +32 (0)2 400 10 90
F: +32 (0)2 400 10 91
E: estela(at)estelasolar.eu
I: www.estelasolar.eu