LCOE analysis of tower CSP plants using different molten salts for TES in China

Abstract

In recent years, Chinese government is vigorously developing concentrating solar power (CSP) technology. It is one of the most promising renewable-based electricity generation technologies to deal with the increasing demand of electricity consumption and environmental sustainability. For the commercialization of CSP technology, low cost is a precondition. However, studies of electricity generation cost analysis for CSP systems, particularly for the tower systems, in China are quite limited. This paper conducts an economic analysis by applying the levelized cost of electricity (LCOE) model for 100 MW tower CSP plants in various locations in China with four different molten salts for thermal energy storage (TES). The results show that it’s inappropriate to build a CSP plant nearby Shenzhen and Shanghai since their LCOEs are higher than 6 RMB kWh−1. There is an optimal capacity of TES resulting in the lowest LCOE for a certain tower CSP plant. And the solar salt has lower LCOE than the other three new molten salts. In order to calculate the time when the grid parity will be reached, four scenarios for CSP development roadmap proposed by International Energy Agency (IEA) are considered in this study. It can be found that the grid parity of tower CSP electricity would be reached in the years of 2038-2041 in the case of no future penalties for the CO2 emissions, and bring forward about 7-14 years when considering the penalties for the CO2 emissions. This research can provide support for government to formulate incentive policies for the CSP industry.