US DOE funding and cost targets for CSP


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Tommy Rueckert, Solar Program Systems Team Leader, U.S. DEPARTMENT OF ENERGY

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US DOE funding and cost targets for CSP

  1. 1. Solar Solar Energy Technologies Program Energy Technologies Program U.S. Department of EnergyConcentrating Solar Power Subprogram Program Overview Thomas Rueckert Solar Program Operations Team Lead May 6th, 2010 CSTP Conference - San Diego, CA
  2. 2. Solar Program BudgetSub-Elements Distributed Generation Photovoltaics (PV) - on-site or near point of use - DOE Market Transformation SETP System Integration Concentrating Solar Centralized Generation Power (CSP) - large users or utilities -U.S. Department of Energy Solar Energy Technologies Program
  3. 3. CSP Subprogram CSP Goals and PrioritiesVision: – Inexpensive power generated from CSP technologies is transmitted throughout the country to provide a significant percentage of the country’s electrical power, reducing the country’s emission of CO2 while creating millions of jobs.Goals: – Competitive in intermediate power market by 2015-2017 – Low cost thermal storage in support of the intermediate power market goal – Competitive in baseload power market by 2020Priorities: – Lower cost through R&D – Develop low cost storage options – Lower cost by helping reduce barriers to deployment of projectsU.S. Department of Energy Solar Energy Technologies Program
  4. 4. CSP Goals for Utility Power The goal of the CSP sub-program is make CSP CSP LCOE with standardized financial competitive in the assumptions intermediate  power market by 2015 and in the  baseload power market by 2020.U.S. Department of Energy Solar Energy Technologies Program
  5. 5. CSP Research and Development R&D is targeting technical obstacles in an effort to improve performance and reduce costs of CSP: Line Focus Research objectives: Optimize receiver and concentrator designs for higher temps, increase component suppliers, evaluate new heat transfer fluids, and create advanced evaluation capabilities Point Focus Research objectives: Improve engine reliability and system manufacturability and develop next-generation dish system designs; test new tower receiver panel and explore low cost heliostat options Storage Research objectives: Develop advanced heat transfer fluids for more efficient operation at high temperatures and test innovative designs for low-cost storage using sensible and latent heat optionsU.S. Department of Energy Solar Energy Technologies Program
  6. 6. CSP Market Barriers Land Access Co-leading a programmatic environmental impact statement with the Bureau of Land Management to help make suitable federal land available for solar project development Transmission Access Working with DOE’s Office of Electricity, Western Area Power Administration, Western Governors’ Association, and states to identify best locations for transmission corridors Resource Assessment Improving satellite data, obtaining ground data from additional sites, forecasting Cost Without incentives, current cost for large-scale CSP power is prohibitively high Water Water resources are scarce in the locations that are otherwise optimal for CSPU.S. Department of Energy Solar Energy Technologies Program
  7. 7. DOE’s Roadmap for CSP Technology FY2008-FY2010 FY2011-FY2014 FY2015-FY2020 Establish/expand U.S. supplier Develop next-generation Develop advanced base through manufacturing system capable of 450°C collectors, receivers, Trough initiative, optical testing to operation integrated with selective coatings, and Systems optimize receiver and molten-salt storage. working fluids designed to concentrator designs operate at 550°C. Evaluate new concepts (e.g. Down-select best Integrate high temperature CLFR, distributed power tower), options, support CSP systems with advanced Advanced test components, develop dish prototype designs, gas turbine/CC technology, Technology technology designed for mass identify key technology reduce system cost through Systems production improvement RD&D and manufacturing opportunities. initiative. Develop thermocline thermal Adapt storage system to Develop advanced thermal storage, evaluate two-tank advanced technology storage up to 550°C for Thermal molten salt system, develop design, address cost, troughs and up to 1200°C for Storage new storage medium and heat performance, operation advanced CSP/CC transfer fluids and O&M issues technologies. Supporting Market Transformation Activities: • Support State and utility deployment efforts • Work with Loan Guarantee Program to adapt loan guarantees to industry business process • Work with BLM, State and local governments to mitigate land and permitting barriers • Provide resource assessment to industry and utilities • Provide analyses supporting CSP access to transmissionU.S. Department of Energy Solar Energy Technologies Program
  8. 8. DOE Funding for Concentrating Solar Power 120 Solar Demo Zone 100 Baseload FOA 80 Capital EquipmentBudget (Million $) 60 Storage FOA 40 CSP R&D FOA 20 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY09-R FY10 FY11 U.S. Department of Energy Solar Energy Technologies Program
  9. 9. Budget DistributionU.S. Department of Energy Solar Energy Technologies Program
  10. 10. Budget Distribution 120,000 $ 103 M 100,000 Demonstration Zone 80,000 Market & Analysis $ 55 M Mgmt & Facilities 60,000 Baseload FOA Storage Tower 40,000 Dish Trough 20,000 0 FY10 FY11U.S. Department of Energy Solar Energy Technologies Program
  11. 11. 2010 Budget Activity Level ($55M) Mgmt & Facilities University Funding Recipients 4% Demo & Deploy Trough 12% 25% Labs Baseload Industry FOA 27% Tower 8% Dish 4% Storage 20%U.S. Department of Energy Solar Energy Technologies Program
  12. 12. Parabolic Trough Example 50 MW AndaSol-1 Parabolic Trough Plant w/ 7-hr Storage in Andalucia, SpainU.S. Department of Energy Solar Energy Technologies Program
  13. 13. Power Tower Example Abengoa PS10 and PS 20 Seville, SpainU.S. Department of Energy Solar Energy Technologies Program
  14. 14. Dish Engine Example 1.5 MW SES Maricopa Solar Dish Stirling System Peoria, AZU.S. Department of Energy Solar Energy Technologies Program
  15. 15. CSP 2007 and Storage Solicitations Lay the framework to exceed DOE goals through advanced CSP concepts • Applicants may propose either an entire system or focus on a component of a CSP system. • Objective is to identify and develop new approaches that could dramatically lower the cost of CSP. • Enable new technologies to position CSP to be the economical solution for baseload national energy consumption post 2015 Provide funding to develop thermal storage technology to increase the dispatchability of CSP technology within the electricity grid. • Develop low cost, high temperature storage that enables trough technology to reach its 2020 cost goal. • To achieve the goal, storage cost of less than $15/kWh thermal is desired with round trip efficiencies at or greater than 93%. Establish a United States based manufacturing infrastructure for low cost CSP trough components. • Lower the cost of major components of a trough system and to establish manufacturing capability of those components in the United States. 15U.S. Department of Energy Solar Energy Technologies Program
  16. 16. CSP Industry R&D ProjectsU.S. Department of Energy Solar Energy Technologies Program Slide 16
  17. 17. National Labs Research • Goal: Support industry in development of CSP technology – Build lab staff to enable research and development on near and mid-term technology – Add and improve lab facilities to support component prototype test and evaluation – NREL and Sandia cooperate on most major programs and interact with industry as a single lab (SunLab) • Lab Budget: FY10 $19M, FY11 $20M (including CSP market transformation tasks) – NREL - $9.7M, – Sandia - $8.5M, – Argonne - $0.85M • Major Programs: – Materials research in reflectors, receivers, storage media (NREL lead) – Trough collectors, optical tools, development of standards (NREL lead) – Towers: system analysis, heliostat & receiver development (Sandia lead) – Storage: system concepts, (NREL, Sandia co-leads) – Dish – support 25 kW dish Stirling project (Sandia Lead) – PEIS – analysis of BLM land suitable for solar projects (Argonne lead)U.S. Department of Energy Solar Energy Technologies Program Slide 17
  18. 18. Baseload Solicitation (TBD awards Feb 2010) Goal: develop CSP system capable of competing in the baseload power market by 2020 to displace coal, a major source of CO2 emissions Budget: $15M in FY11, $15M in FY12, $52M total over 4 years Program Controls: each award broken into 3 phases (feasibility, engineering design, prototype test/evaluation) with a stage-gate review at end of each, peer review Strategy: – Systems must have a capacity factor of 75% (10+ hours of storage) – Cost of competing power estimated at 8-9 cents/kWh (assuming restriction on coal emissions requires sequestration that raises cost of coal power)U.S. Department of Energy Solar Energy Technologies Program Slide 18
  19. 19. CSP Demonstration Solicitation & Site Selection (TBD awards Oct 2010) Goal: demonstrate innovative CSP technologies that lowers the cost of power or adds capability to CSP systems (e.g. storage) at a scale that shows viability to financial community Budget: $1M in FY2010, $50M in FY2011, $150M total over 6 years Program Controls: two-phases possible for each award (small demos of 1-10MW each, and full scale demos up to 250MW each) with a stage-gate review at end of phase 1; peer review by bankers, utilities, and independent engineering companies Strategy: – DOE, in cooperation with BLM, select site for demonstrations – DOE will cost-share small demonstrations that could be located at the DOE site or an industrial site – Small demonstrations that pass the stage-gate and peer review could go to full-scale demonstration at the DOE site. – DOE will provide site infrastructure and coordinate access to transmission for the full- scale demonstrations – DOE will not cost share in the full-scale demonstrations. Industry will be responsible for obtaining power purchase agreements, obtaining financing, constructing, operating and maintaining the demonstrations.U.S. Department of Energy Solar Energy Technologies Program Slide 19
  20. 20. CSP Demonstration Solicitation & Site Selection Justification: – In order for CSP systems to compete for utility PPA’s, they are large (>100MW) and expensive (>$500M) – Banks are hesitant to loan money to CSP developers using technology that has not been demonstrated and proven to work as predicted. – This activity is meant to bridge the gap between lab prototype and commercial product, without which the CSP industry would not be able to compete in U.S. power markets without subsidies. – Collaborations with the DOE Loan Guarantee Program, financial community, utilities, state transmission entities, WAPA, and BLM . Policy: Building the full-scale CSP demonstration systems would be helped by their being eligible for DOE Loan Guarantees and the 30% Treasury grant. This may require the extension of both of those programs.U.S. Department of Energy Solar Energy Technologies Program Slide 20
  21. 21. Thank You CSP Subprogram Solar Energy Technologies Program U.S. Department of Energy Contact: thomas.rueckert@ee.doe.govU.S. Department of Energy Solar Energy Technologies Program