SOLAR THERMAL POWER

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SOLAR THERMAL POWEREXPLOITING THE HEATFROM THE SUN TO COMBATCLIMATE CHANGE

Over the period up to 2020a total of 154 milliontonnes of carbon dioxidewould be saved frombeing emitted into theatmosphere, making asubstantial contributionto international climatechange targets.

CONTENTSFOREWORDEXECUTIVE SUMMARY03PART 1: SOLAR THERMAL POWER –06THE BASICSPART 2: SOLAR THERMAL POWER –TECHNOLOGY, COSTS ANDBENEFITS09PART 3: THE GLOBAL SOLARTHERMAL MARKET24PART 4: THE FUTURE OF SOLARTHERMAL POWER34PART 5: POLICY RECOMMENDATIONS42SOLAR THERMAL POWER PLANTS 1

FOREWORDTHE VISION IS CLEAR: SOLAR THERMAL POWER PLANTS CAN BECOMETHE OFFSHORE WIND FARMS OF THE DESERT – EXPLOITING THE HEATFROM THE SUN TO COMBAT CLIMATE CHANGE.This report demonstrates that there are no technical,economic or resource barriers to supplying 5% of the world’selectricity needs from solar thermal power alone by 2040 –even against the challenging backdrop of a projected morethan doubling in global electricity demand. The solar thermalindustry is capable of becoming a dynamic, innovative 15billion annual business within 20 years, unlocking a new globalera of economic, technological and environmental progress.The benefits of solar power are compelling: environmentalprotection, economic growth, job creation, diversity of fuelsupply and rapid deployment, as well as the global potentialfor technology transfer and innovation. The underlyingadvantage of solar energy is that the fuel is free, abundant andinexhaustible. The total amount of energy irradiated from thesun to the earth’s surface is enough to provide for annualglobal energy consumption 10,000 times over.On climate change, a solid international consensus nowclearly states that business-as-usual is not an option and theworld must move swiftly towards a clean energy economy.Solar thermal power is a prime choice in developing anaffordable, feasible, global energy source that is able tosubstitute for fossil fuels in the sunbelts around the world.Electricity for 100 million peopleGreenpeace and the European Solar Thermal Power IndustryAssociation (ESTIA) have together produced this report in orderto update our understanding of the contribution that solarthermal power can make to the world’s energy supply. The reportis a practical blueprint to show that solar thermal power iscapable of supplying electricity to more than 100 million peopleliving in the sunniest parts of the world within two decades.Modern solar thermal power plants provide bulk powerequivalent to the output from conventional power stationsand can be built in a matter of months. The aim of thisblueprint is to push further forward the boundaries oftechnological progress and unlock the benefits that willCo-authorGeorg. Brakmann, PresidentEuropean Solar Thermal Industry AssociationSOLAR THERMAL POWER PLANTS 2follow. Solar thermal power does not need to be invented,nor is there a need to wait for any magical ‘breakthrough’; itis ready for global implementation today.The vision is clear: solar thermal power plants canbecome the offshore wind farms of the desert –exploiting the heat from the sun to combatclimate change.Urgent political commitmentThe solid industrial and political commitment to the expansion ofthe solar thermal power plant industry outlined in this reportshows clearly that the current surge of activity in the solarelectricity sector represents merely a foretaste of the massivetransformation and expansion it is capable of over the comingdecades. But although reports are a useful guide, it is peoplewho change the world by their actions. We encourage politiciansand policy-makers, global citizens, energy officials, companies,investors and other interested parties to support solar thermalpower by taking concrete steps which will help ensure thathundreds of millions of people will receive their electricity fromthe sun, harnessing its full potential for our common good.Following last year’s Earth Summit, the JohannesburgRenewable Energy Coalition was formed, with more than80 countries proclaiming that their goal is to “substantiallyincrease the global share of renewable energy sources” on thebasis of “clear and ambitious time-bound targets”. Politicaldeclarations mean little if not put into practice. This report is ablueprint for action that governments can implement, andshows what is possible with just one renewable technology.Solar thermal power is a global scale technology that has thecapacity to satisfy the energy and development needs of theworld without destroying it.Note: Figures are given in this report in both US dollars and Euros.Readers should note that the two currencies have a similar value.Co-authorRainer. Aringhoff, Secretary GeneralEuropean Solar Thermal Industry AssociationSven Teske, B.ScRenewables Director, Greenpeace

EXECUTIVE SUMMARYPower from the SunSolar thermal power is a relatively new technology which hasalready shown enormous promise. With few environmentalimpacts and a massive resource, it offers an opportunity tothe sunniest countries of the world comparable to thebreakthrough offshore wind farms are currently offeringEuropean nations with the windiest shorelines.Solar thermal power uses direct sunlight, so it must besited in regions with high direct solar radiation. Among themost promising areas of the world are the South-WesternUnited States, Central and South America, Africa, theMiddle East, the Mediterranean countries of Europe, Iran,Pakistan and the desert regions of India, the former SovietUnion, China and Australia.In many regions of the world, one square kilometre of landis enough to generate as much as 100-200 Gigawatt hours(GWh) of electricity per year using solar thermal technology.This is equivalent to the annual production of a 50 MWconventional coal or gas-fired power plant. Worldwide, theexploitation of less than 1% of the total solar thermalpotential would be enough to stabilise the world climatethrough massive CO2 reductions.Turning Solar Heat into ElectricityProducing electricity from the energy in the sun’s rays is arelatively straightforward process. Direct solar radiation canbe concentrated and collected by a range of ConcentratingSolar Power (CSP) technologies to provide medium to hightemperature heat. This heat is then used to operate aconventional power cycle, for example through a steam orgas turbine or a Stirling engine. Solar heat collected duringthe day can also be stored in liquid, solid or phase changingmedia like molten salts, ceramics, concrete, or in the future,phase changing salt mixtures. At night, it can be extractedfrom the storage medium to run the steam turbine.Solar thermal power plants can be designed for solar-onlygeneration, ideally to satisfy demand during daylight hours,but with future storage systems their operation can beextended to almost base load requirements.Electricity from solar thermal power is also becomingcheaper to produce. Plants operating in California havealready achieved impressive cost reductions, withgeneration costs ranging today between 10 and 13 UScents/kWh. However, costs are expected to fall closer to5 US cents in the future. Advanced technologies, massproduction, economies of scale and improved operationwill together enable a reduction in the cost of solarelectricity to a level competitive with fossil power plantswithin the next 10 to 15 years.Technology, Costs and BenefitsFour main elements are required to produce electricityfrom solar thermal power: a concentrator, a receiver, someform of a heat transport, storage and power conversionequipment much the same as for a fossil fuel-based plant.The three most promising solar thermal technologies arethe parabolic trough, the central receiver or solar tower,and the parabolic dish.Parabolic trough systems use trough-shaped mirrorreflectors to concentrate sunlight on to receiver tubesthrough which a thermal transfer fluid is heated to roughly400 C and then used to produce superheated steam. Theyrepresent the most mature solar thermal power technology,with 354 MWe of plants connected to the SouthernCalifornia grid since the 1980s and more than two squarekilometres of parabolic trough collectors. These plantssupply an annual 800 million kWh – enough for more than200,000 households – at a generation cost of about 10-13US cents/kWh.Further advances are now being made in the technology,with utility scale projects planned in Greece, Spain, Egypt,Mexico, India, Morocco, Iran, Israel, Italy, the United Statesand Algeria. Electricity from trough plants combined withgas-fired combined cycle plants – ISCC (Integrated SolarCombined Cycle) systems – is expected to cost6 cents/kWh today and 5 cents in medium terms.Central receiver (solar tower) systems use a circular arrayof large individually-tracking mirrors (heliostats) toconcentrate sunlight on to a central receiver mounted ontop of a tower, with heat transferred for power generationthrough a choice of transfer media. After an intermediatescaling up to 30 MW capacity, solar tower developers nowfeel confident that grid-connected tower power plants canbe built up to a capacity of 200 MWe solar-only units. Useof thermal storages will increase their flexibility.SOLAR THERMAL POWER PLANTS 3

Although central receiver plants are considered to befurther from commercialisation than parabolic troughsystems, solar towers have good longer term prospects forhigh conversion efficiencies. Projects are in various stagesof development (from assessment to implementation) inSpain, South Africa and the United States. In the future,central receiver plant projects will benefit from similar costreductions to those expected from parabolic trough plants.The anticipated evolution of total electricity costs is thatthey will drop to 5 cents/kWh in the mid to long term.Parabolic dish systems are comparatively small unitswhich use a dish-shaped reflector to concentrate sunlight,and heated gas or air to generate power in a small engineat the focal point of the reflector. Their potential liesprimarily in decentralised power supply and remote,stand-alone power systems. Projects are currently plannedin the United States, Australia and Europe. In terms ofelectricity costs, an attainable mid-term goal is a figure ofless than 15 cents/kWh.Current trends show that two broad pathways haveopened up for large scale delivery of electricity usingsolar thermal power. One is the ISCC-type hybridoperation of solar collection and heat transfer combinedwith a conventional state-of-art combined cycle gas-firedpower plant. The other is solar-only operation, with aconventional steam turbine, increasing use of a storagemedium such as molten salt. This enables solar energycollected during the day to be stored and thendispatched when demand requires.A major benefit of solar thermal power is that it has littleenvironmental impact, with none of the polluting emissionsor safety concerns associated with conventionalgeneration technologies. There is no pollution in the formof exhaust gases during operation. Decommissioning asystem is unproblematic.Each square metre of surface in a solar field is enough toavoid the annual production of 200 kilograms (kg) ofcarbon dioxide. Solar power can therefore make asubstantial contribution towards international commitmentsto reduce emissions of greenhouse gases which contributeto climate change.The Global Solar Thermal MarketNew opportunities are opening up for solar thermal poweras a result of the global search for clean energy solutions.Both national and international initiatives are supportingthe technology, encouraging commercialisation ofSOLAR THERMAL POWER PLANTS 4production. A number of countries have introducedlegislation which forces power suppliers to source a risingpercentage of their supply from renewable fuels. Bulkpower high voltage transmission lines from high insulationsites, such as in northern Africa, could encourageEuropean utilities to finance large solar plants whosepower would be used in Europe.These and other factors have led to significant interest inconstructing plants in the sunbelt regions. In addition,interest rates and capital costs have drastically fallenworldwide, increasing the viability of capital intensiverenewable energy projects. Examples of specific large solarthermal projects currently planned around the world,evidence of the “race to be first”, include: Algeria:140 MW ISCC plant with 35 MWsolar capacity. Australia:35 MW CLFR-based array to pre-heatsteam at a coal-fired 2,000 MW plant. Egypt:127 MW ISCC plant with 29 MWsolar capacity. Greece:50 MW solar capacity using steam cycle. India:140 MW ISCC plant with 35 MWsolar capacity. Israel:100 MW solar hybrid operation. Italy:40 MW solar capacity using steam cycle. Mexico:300 MW ISCC plant with 29 MWsolar capacity. Morocco:230 MW ISCC plant with 35 MWsolar capacity. Spain:2 x 50 MW solar capacity using steamcycle and storage. USA:50 MW Solar Electric GeneratingSystems. USA:1 MW parabolic trough usingORC engineThe Future for Solar Thermal PowerA scenario prepared by Greenpeace International and theEuropean Solar Thermal Power Industry Associationprojects what could be achieved by the year 2020 giventhe right market conditions. It is based on expectedadvances in solar thermal technology coupled with thegrowing number of countries which are supportingprojects in order to achieve both climate change andpower supply objectives.

KEY RESULTS FROM GREENPEACE-ESTIA SCENARIO 2002 TO 2020Capacity of Solar Thermal Power in 202021,540 MWElectricity Production in 202054,600,000 MWh (54.6 TWh)Cumulative InvestmentUS 41.8 billionEmployment Generated200,000 jobsCarbon Emissions Avoided 2002 – 2020154 million tonnes CO2Annual Carbon Emissions Avoided in 202032.7 million tonnes CO2Projection 2021 to 2040Capacity of Solar Thermal Power in 2040630,000 MWElectricity Production in 20401573 TWhPercentage of Global Demand5%Over the period of the scenario, solar thermal technologywill have emerged from a relatively marginal position in thehierarchy of renewable energy sources to achieve asubstantial status alongside the current market leaderssuch as hydro and wind power. From a current level of just354 MW, by 2015 the total installed capacity of solarthermal power plants will have reached 5,000 MW. By2020 additional capacity would be rising at a level ofalmost 4,500 MW each year. By 2020, the total installed capacity of solar thermalpower around the world will have reached 201,540 MW. Solar thermal power will have achieved an annual outputof more than 54,600,000 MWh (54.6 TWh) This isequivalent to the consumption of over one third ofAustralia’s electricity demand. Capital investment in solar thermal plant will rise fromUS 375 million in 2005 to almost US 7.6 billion in2020. The total investment over the scenario periodwould amount to US 41.8 bn. The five most promising countries in terms ofgovernmental targets or potentials according to thescenario, each with more than 1,000 MW of solar thermalprojects expected by 2020, are Spain, the United States,Mexico, Australia and South Africa. Over the period up to 2020 a total of 154 million tonnesof carbon dioxide would be saved from being emittedinto the atmosphere, making an important contribution tointernational climate protection targets.A further projection is also made for the potentialexpansion of the solar thermal power market over anothertwo decades up to 2040. This shows that by 2030 theworld-wide capacity will have reached 106,000 MW, andby 2040 a level of almost 630,000 MW. Increasedavailability of plants because of the greater use of efficientstorage technology will also increase the amount ofelectricity generated from a given installed capacity.The result if that by 2040 more than 5% of the world’selectricity demand could be satisfied by solar thermal power. Expansion in the solar thermal power industry will resultin the creation of 200,000 jobs worldwide, even notcounting those involved in production of the hardware.SOLAR THERMAL POWER PLANTS 5

Patent for first parabolic trough collector in 1907 toDr. W. Maier of Aalen and A. Remshardt Stuttgart.These early designs formed the basis for R&Ddevelopments in the late 1970s and early 1980s, whensolar thermal projects were undertaken in a number ofindustrialised countries, including the UnitedStates, Russia, Japan, Spain and Italy (seeTable 1). Many of these plants, covering thewhole spectrum of available technology,failed to reach the expectedperformance levels, andsubsequent R& D hascontinued to concentrateon technologyimprovement andincreasing thesize of unit.SOLAR THERMAL POWER PLANTS 6SOLAR THERMAL POWER– THE BASICS1. Power from the SunSolar thermal power is a relatively newtechnology which has already shownenormous promise. With few environmentalimpacts and a massive resource, it offers anopportunity to the sunniest countries of theworld comparable to that which offshore windfarms are currently offering to European andother nations with the windiest shorelines.

Solar thermal power uses direct sunlight, so it must be sited inregions with high direct solar radiation. Suitable sites shouldoffer at least 2,000 kilowatt hours (kWh) of electricity per m2 ofsunlight annually, whilst the best sites offer more than2,500kWh/m2. Typical locations, where the climate andvegetation do not offer high levels of atmospheric humidity,include steppes, bush, savannah’s, semi-deserts and truedeserts, ideally located within 40 degrees of latitude. Amongthe most promising areas of the world are therefore theSouth-Western United States, Central and South America,Africa, the Middle East, the Mediterranean countries ofEurope, Iran, Pakistan and the desert regions of India,the former Soviet Union, China and Australia.In many regions of the world, one square kilometre of land isenough to generate as much as 100-200 Gigawatt hours(GWh) of solar electricity per year using solar thermaltechnology. This is equivalent to the annual production of a50 MW conventional coal or gas-fired power plant. Over thetotal life cycle of a solar thermal power system, its outputwould be equivalent to the energy contained in 16 millionbarrels of oil. Worldwide, the exploitation of less than1% of the total solar thermal potential would be enoughto meet the recommendations of the United Nations’Intergovernmental Panel on Climate Change (IPCC) forthe long-term stabilisation of the climate.base load coverage. During the technology’s marketdevelopment phase, hybrid plant concepts which back up thesolar output by fossil firing are likely to be the favoured option.This would involve, for example, Integrated Solar-CombinedCycle (ISCC) plants for mid-load or base-load operation.Combined generation of heat and power by CSP hasparticularly promising potential, as the high value solarenergy input is used to the best possible efficiency,exceeding 85%. Process heat from combined generationcan be used for industrial applications, district cooling orsea water desalination.Current CSP technologies include parabolic trough powerplants, solar power towers and parabolic dish engines (seePart Two). Parabolic trough plants with an installed capacity of354 MW have been in commercial operation for many years,whilst solar towers and dish engines have been testedsuccessfully in a series of demonstration projects.3. Why Concentrate Solar Power?Concentrating solar power to generate bulk electricity is oneof the best suited technologies to help mitigate climatechange in an affordable way, as well as reducing theconsumption of fossil fuels.Environmental SustainabilityThis large solar power potential will only be used to a limitedextent, however, if it is restricted by regional demand and bylocal technological and financial resources. If solar electricity isexported to regions with a high demand for power but fewindigenous solar resources, considerably more of the potentialin the sunbelt countries could be harvested for the protectiono

to update our understanding of the contribution that solar thermal power can make to the world’s energy supply. The report is a practical blueprint to show that solar thermal power is capable of supplying electricity to more than 100 million people living in the sunniest parts of the world within two decades.

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