Concentrated solar power: technology, economy analysis, and policy implications in China

Abstract

Renewable energy plays a significant role in achieving energy savings and emission reduction. As a sustainable and environmental friendly renewable energy power technology, concentrated solar power (CSP) integrates power generation and energy storage to ensure the smooth operation of the power system. However, the cost of CSP is an obstacle hampering the commercialization of this emerging industry, so the paper studies the technical characteristics, economic analysis, and policy implications of CSP. This paper sorts out the relevant policies of CSP and uses the levelized cost of electricity (LCOE) model by considering financial parameters, investment parameters, operation and maintenance parameters, tax parameters, capacity parameters, etc., to analyze the economics of CSP. The model parameters are set by the actual situation of CSP projects. The economic evaluation of different technology types of parabolic trough (PT), solar tower (ST), secondary reflection ST, and linear Fresnel reflector (LFR) is carried out. The LCOE of PT project is 1.11 RMB/kWh (0.17 US$/kWh), the ST project is 0.93 RMB/kWh (0.14 US$/kWh), the secondary reflection ST project is 0.97 RMB/kWh (0.15 US$/kWh), and the LFR project is 0.92 RMB/kWh (0.14 US$/kWh). The results show that the grid parity era of CSP in China is within reach, and ST is the most potential technology type. Based on the results of economic analysis and the problems faced by CSP in China, this paper puts forward policy implications by preferential loans, tax incentives, and R&D fund support to promote the development of CSP.

Keywords: China; Concentrated solar power; Economy; Grid parity; LCOE model; On-grid price.