1) Solar thermal energy has potential for large-scale deployment as a carbon-free electricity source but currently only has 3 GW installed globally. 2) In Spain, solar thermal provided over 500 GWh in July 2012 and its economic impact in 2012 included over 1.8 billion euros in GDP contribution and nearly 18,000 jobs. 3) For solar thermal to reach its full potential, costs must continue to decline as deployment increases, with projections of 14-25 euro cents/kWh by 2030 as the industry matures and capacity grows towards 300 GW.

1. General situation of Solar Thermal Energy and
prediction needs
Eduardo Garcia Iglesias
Deputy Secretary-General of Protermosolar
Ciemat, 11-6-2013

2. Solar Energy

3. 0
50
100
150
200
Eolica
FV
STE
282
101
3
General situation of Solar Thermal
Energy
Additional 3 GW
under construction

4. The ESTELA forecast

5. Technical
Features
Local
Economic
Development
Large deployment of STE power plants
CO2 free electrical generation system
Energy independence at affordable price
Sustainable future
Cost
The reasons for a brilliant STE future

6. The reasons for a brilliant STE future
1. Technical
STE is the only dispatchable and grid-friendly -enhancing grid
stability- renewable technology with potential enough to meet
the electricity needs worldwide in order to achieve a carbon free
generation system
2. Local Economic Development
Local content of STE plants -and corresponding contribution to
the GDP- will be one of the main drivers behind the supporting
policies in many countries.
3. Competitiveness
The cost of STE plants will show important reductions when
approaching from the current 3 GW installed to the similar
values of Wind (300 GW) and PV (100 GW)

7. 1. Technical
The reasons for a brilliant STE future

8. In Operation (45 / 2054 MW)
In Advanced Construction Stage(5 / 250 MW)
Málaga
Badajoz
Sevilla
Almería
Alicante
Ciudad Real
Granada
Updated information: www.protermosolar.com
Cádiz
Córdoba
Murcia
Lérida
Cáceres

9. Some recent data on production in Spain
Source REE
Important milestones
in July 2012:
 Max. contribution 4,1%
(July the 11th at 17:00)
Max. daily contribution 3,2%
(July the 15th)
 Monthly production 2,3%
(524 GWh in July)
Solar Thermal Electricity production in Spain. July 2012MWh

10. Integrated
Solar Field
Peak Power
(No storage)
Base Load
(Large storage)
Dispatchable
(Medium size storage)
Opportunities and value of different STE
technologies
Efficiency
Fresnel
Parab. trough
Fresnel
Parab. trough
Steam Tower
Compressed
Air Rec. Tower
Parab. trough
Molten salt tower Molten salt tower
Strong PV competition
Hybridization will
enhance competitiveness
Parab. trough

11. 2. Local Economic Development
The reasons for a brilliant STE future

12. The consulting firm Deloitte carried out the study
“Macroeconomic impact in 2010 of the Solar
Thermal Electricity Industry in Spain”, which can
be downloaded from www.protermosolar.com
In the 2010 study the basic element for calculating the impact on the GDP
and on the other economic aspects was the number of plants under
construction or operation along the different months of 2010.
When calculating the impact in 2012 we have used the same ratios to all
power plant under construction or in operation, along with another set of
consistent hypotheses in line with those used by Deloitte in 2010.
Macroeconomic impact of the
STE Industry in Spain in the year 2012

13. Main results of the
macroeconomic impact in 2012
Installed capacity 1.970 MW
Contribution to the GDP 1.835 millions €
GDP in construction 958 millions €
GDP in O&M 877 millions €
Electricity generated 3.432 GWh
Equivalent premium (CNE) 927 millions €
Employment 17.816 Persons
Employment in construction 15.607 Persons
Employment in O&M 2.209 Persons
I+D investment 60 millions €
CO2 emissions avoided 2,4 t CO2
Savings in CO2 rights 17 millions €
Savings from replacing imported fossil fuels 131 millions €

14. Premiums: 927 M€
Savings in CO2 rights: 17 M€
Savings from replacing
imported fossil fuels: 131 M€
Fiscal contribution
(Social Security, Corporate, Personal
and Local Taxes,) 772 M€
Contribution to GDP:
1835 M€
+ Leadership of the Spanish industry
+ Attraction of foreigner investment
+ Reduction of electricity pool price
+ Regional economical convergence
Comparison between premiums received
and returns to the economy in 2012
Unemployment subsidies
avoided: 132 M€
Supporting STE was a
wise decision for Spain

15. Breakdown of GDP
contribution by industry sector

16. From the first large plants connected in 2008 till the new ones
Technology Development
Component manufacturing
Basic Engineering
Site Development
Project development
EPC
Detailed engineering
Construction
Operation and Maintenance
TOTAL LOCAL CONTENT 50% 80%
Past situation Current CapabilitiesSpanish Foreing
The natural evolution of local content

17. Industry localization in Spain
for solar field components
Prerequisite:
Stable program of some
few hundred MW per year
Absorber tubes
Curved mirrors
Collector structure

18. Other direct effects on Industry
Reorientation of other mature industries:
- Construction, civil works
- Engineering of conventional power plants
- Electricity Transmission Infrastructures
- Galvanizers, …
Reinforcement of some industry sectors:
- Piping and tanks
- Heat exchangers
- Boilers
- Cabling
- Telecommunication and control
Enlargement of supplier’s subsidiaries in the country:
(Promotion, Maintenance, Stock Management, …)
Huge impact in auxiliary sectors
- Cleaning, environmentalists, labs, …
- Road transport
- Training, …

19. Jobs in a typical STE plant
in Spain (50 MW, 7,5 h. storage)
 2214 one year equivalent jobs on the whole value chain
(promotion, engineering, comp. manufact.,& construction)
 47 direct jobs for operation and related services during
the whole life span of the plant

20. Evolution of the contribution to GDP
1,650
2,084
1,835
0
500
1,000
1,500
2,000
2,500
2010 2011 2012
1,474 1,690
877
175
394
958
0
500
1,000
1,500
2,000
2,500
2010 2011 2012
GDP Construction GDP O&M

21. 3. Competitiveness
The reasons for a brilliant STE future

22. What has been done so far
(Stars mean achievements)
Source:
Deloitte, Macroeconomic Impact of STE sector in Spain, 2010
Cost breakdown for a 50 MW plant with 7 h. storage
Cost reduction:
Structure
Tubes
Mirrors
Performance increase
Cost reductionCost =
Performance increase
Cost =
The increase of financing
costs has counteracted this
effort to some extend

23. Cost references from current projects
30 c€/kWh
13 c$/kWh
25 c$/kWh
25 c€/kWh
30
c€/kWh
10
21 c$/kWh
14 c€/kWh
0
?

24. The “harmonization” model for STE costs
Actual PPA for a
given project at a
certain location
under specific
support
circumstances
Harmonized PPA for
a “typical” project at
the same location
without public
support
“Discount” factors
PPA or FiT duration
Concessional loans
Specific Financial
conditions
Plant size
PPA escalation rate
Loan duration
Grants
DISCLAIMER: This attempt to provide reference prices must be considered approximated. There are many
default values that might be not applicable to all projects as well as some country specific requirements.
“Typical” project
150 MW
4h storage
25 PPA
No public financing
and no escalation

25. Cost reduction estimations:
The view from the Industry in 2012
Hypothesis: 30 GW
will be built at that time.
Some breakthroughs might
accelerate this trend.
Source: ESTELA Position Paper
Stars corresponds to “normalized”
PPAs or FiTs in 2012 at their respective
locations in Spain, USA, India, Morocco
South Africa and Israel

26. Thank you for your attention
www.protermosolar.com
eduardogiglesias@protermosolar.com