CSP with storage adds value for utilities - study

Dec 21, 2012 - Concentrated solar power (CSP) with storage can help the profitability of utilities by adding value to their optimal mix of energy sources, according to a study by the US Department of Energy's National Renewable Energy Laboratory (NREL).

CSP with a six-hour storage capacity can reduce peak net loads when there is no sunshine, sufficiently to add USD 35.80 (EUR 27.1) per MWh to a utility's capacity and operational value in comparison to photovoltaic (PV) solar power, says the report, released yesterday. The extra value is even higher when compared to CSP without storage. The net load represents the normal load excluding variable renewables such as PV and wind.

The USD 35.80/MWh figure is based on high penetration of renewables, at about 34% of the utility's mix, and would be smaller at lower penetration, NREL noted.

The extra value is due to the fact that thanks to storage CSP is able to replace gas-fired generation rather than coal during peak loads and to flatten the peak load in the evenings when there is no PV generation. Electricity produced from natural gas-fired generators is usually more expansive than that produced from coal.

CSP with thermal energy storage capable of storing thermal energy in, for example molten salt, can use the heat energy to run turbines at power plants over significantly longer periods of the day.

The report is based on simulated grid operations in two balancing areas mainly in Colorado. NREL is using the same methodology for the more complex California system and expects to release a report on the value that CSP with thermal storage adds to it early next year.

(USD 1.0 = EUR 0.757)

Choose your newsletter by Renewables Now. Join for free!