Realising the Potential for Concentrating Solar Power in Australia
The Report, commissioned by the Australian Solar Institute (ASI) and undertaken by international renewable energy consultancy IT Power, was released on 6 June 2012.
The Report is the result of an extensive 12 month collaborative review involving AUSTELA, the Clean Energy Council, the Australian Solar Energy Society, CSIRO and Boston Consulting Group, and is the most contemporary and detailed review of concentrating solar power yet undertaken in Australia.
- Provides a summary of the global status of CSP
- Reviews previous investigations of the potential for CSP in Australia
- Establishes a best estimate of current installed costs and LCOE for large-scale CSP systems if built in Australia
- Analyses the potential market segments for CSP electricity in Australia
- Examines challenges currently impeding the development of a CSP industry in Australia, and
- Identifies pathways for CSP industry development and supporting research and development.
Drawing on unique access to data from the major CSP projects in operation and under construction globally, the review finds that:
- Both installed cost and levelised cost of energy for CSP in Australia is likely to be significantly less than previous investigations have suggested
- Cost reductions for CSP in Australia are likely to be achieved at a significantly greater rate than has previously been understood
- Concentrating solar thermal power with thermal energy storage – which provides the flexibility to deliver power at times of day when it is most valuable – has a value up to double that of electricity generation with no ability to control output timing
- Thermal energy storage, a mature technology deployed in most new CSP projects internationally, creates significant value that is not currently realized through Australian market mechanisms
- The technical capacity of the National Electricity Network to cater for CSP power generation, without major augmentation, is up to 15GW
- Cost benefits of scale in CSP plants are not as material as previous assumed, suggesting broad potential for CSP in Australia from under 50MW scale to utility scale (250MW and greater)
- Australian technical skills, project development and industrial capabilities position Australian industry well to play a prominent role in the still-forming global market for concentrating solar thermal power.
An Authoritative and Timely Reference
The Report provides an authoritative reference for other studies investigating the value of electricity generation alternatives for Australia’s energy system.
The Report is especially timely in the context of current studies by the Australian Energy Market Operator (AEMO) and the Bureau of Resource and Energy Economics (BREE) investigating relative value and benefits of alternative power generation options in the development of Australia’s energy networks and for the Australian economy.
AUSTELA is engaged with AEMO and BREE in these studies, and has assisted in promoting ongoing dialogue between them and the CSP Review’s authors to ensure the findings of the Review can be fully considered in Australia’s Energy White Paper, Transmission Network Development plans and electricity market evolution.
Report at a Glance – executive summary for stakeholders
An executive summary – the ‘Report at a Glance’ - has been created to assist non-technical readers to access the Report’s key findings as efficiently as possible. The ‘Report at a Glance’ is included at pages 8 – 35 of the Report. It is also available at the ASI’s website here – www.australiansolarinstitute.com.au
Further research – The Potential for CSP to Reduce Distribution Network System costs
The draft Energy White Paper forecasts that $120 billion - half of the investment in Australia’s electricity system to 2030 – will be needed in the huge networks operated by Ergon Energy, Essential Energy and other distribution network service providers (DNSPs). Research in Australia and internationally confirms the potential for CSP to provide load-firming generation that can help reduce network system costs.
In collaboration with the Institute for Sustainable Futures at the University of Technology Sydney and the Centre for Energy and Environmental Markets at the University of New South Wales, AUSTELA has designed and commissioned a study of the Potential Network Benefits of Solar Thermal Electricity Generation in the NEM.
This new research will build upon the findings of ‘Realising the Potential for Concentrating Solar Power in Australia’, to provide detailed analysis and mapping of the potential for solar thermal power generation to reduce network costs and enhance efficiency in the National Electricity Market.
The Potential Network Benefits study is intended to report by early 2013.
Download the report here.( 9.6MB)