The Value of Concentrating Solar Power and Thermal Energy Storage

TLDR: In this article, the authors examined the value of concentrating solar power (CSP) and thermal energy storage (TES) in a number of regions in the southwestern United States, and they showed that TES can increase CSP's value by allowing more thermal energy from a CSP plant's solar field to be used, and by allowing CSP generation to be shifted to hours with higher energy prices.

Abstract: This paper examines the value of concentrating solar power (CSP) and thermal energy storage (TES) in a number of regions in the southwestern United States. Our analysis shows that TES can increase the value of CSP by allowing more thermal energy from a CSP plant's solar field to be used, allowing a CSP plant to accommodate a larger solar field, and by allowing CSP generation to be shifted to hours with higher energy prices. We analyze the sensitivity of this value to a number of factors, including the optimization period, price and solar forecasting, ancillary service sales, and dry cooling of the CSP plant, and also estimate the capacity value of a CSP plant with TES. We further discuss the value of CSP plants and TES net of capital costs.

Figures

Table 1. Location of CSP Plants Studied

Figure 1. Polynomial heat-rate curve in SAM

Figure 16: Annual operating profit reduction of a dry-cooled CSP plant at Texas site

Figure 17. Net operating profits lost from dry- as opposed to wet-cooled CSP plants with a solar multiple of 2.0

Figure 18. Net energy production lost from dry- as opposed to wet-cooled CSP plants with a solar multiple of 2.0

Figure 5: Annual operating profits of a CSP plant at Arizona site

Full text

Technical Report
NREL-TP-6A2-45833
February 2010
The Value of Concentrating Solar
Power and Thermal Energy Storage
Ramteen Sioshansi
The Ohio State University
Columbus, Ohio
Paul Denholm
National Renewable Energy Laboratory
Golden, Colorado

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Technical Report
NREL-TP-6A2-45833
February 2010
The Value of Concentrating Solar
Power and Thermal Energy Storage
Ramteen Sioshansi
The Ohio State University
Columbus, Ohio
Paul Denholm
National Renewable Energy Laboratory
Golden, Colorado
Prepared under Task No. CP09.3201

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iii
Abstract
This paper examines the value of concentrating solar power (CSP) and thermal energy storage
(TES) in four regions in the southwestern United States. Our analysis shows that TES can
increase the value of CSP by allowing more thermal energy from a CSP plant’s solar field to be
used, by allowing a CSP plant to accommodate a larger solar field, and by allowing CSP
generation to be shifted to hours with higher energy prices. We analyze the sensitivity of CSP
value to a number of factors, including the optimization period, price and solar forecasting,
ancillary service sales, capacity value and dry cooling of the CSP plant. We also discuss the
value of CSP plants and TES net of capital costs.

iv
Table of Contents
List of Figures ............................................................................................................................................. v
List of Tables ............................................................................................................................................... v
1
Introduction ........................................................................................................................................... 1
2 CSP Model and Simulations ................................................................................................................ 3
3 Operating Profits of CSP Plants with TES in Energy-Only Markets ................................................ 7
4 Sensitivity of CSP Profits to Base Case Assumptions ................................................................... 13
4.1 Impact of Optimization Horizon ........................................................................................13
4.2 Impact of Solar Availability and Energy Price Forecasting ..............................................14
4.3 Impact of Ancillary Service Sales ......................................................................................15
4.4 Impact of Capacity Credit ..................................................................................................18
4.5 Impact of Power Block Dry Cooling .................................................................................18
5 Break-Even Cost of CSP Plants ........................................................................................................ 21
6 Conclusions ........................................................................................................................................ 24
References ................................................................................................................................................. 25