Solar thermal energy cost expected to halve: CSIRO

Solar thermal energy will halve in cost by 2020, the new director of the CSIRO’s Australian Solar Thermal Research Initiative said today. Solar thermal energy uses the concentrated heat of the sun to create steam, which turns a turbine and creates a clean, renewable power source. However, it remains…

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Concentrated solar thermal power remains expensive compared to other forms of energy. International Rivers.

Solar thermal energy will halve in cost by 2020, the new director of the CSIRO’s Australian Solar Thermal Research Initiative said today.

Solar thermal energy uses the concentrated heat of the sun to create steam, which turns a turbine and creates a clean, renewable power source.

However, it remains expensive compared to other forms of energy due to fossil fuel subsidies and the limited operator hours of solar thermal energy power plants.

The CSIRO’s $87 million Australian Solar Thermal Research Initiative (ASTRI), which brings together the country’s top researchers in the field, aims to make solar thermal energy cheaper by developing new, more efficient technology and finding ways to reduce capital costs.

Dr Manuel J Blanco, who began this week as ASTRI’s new director, said the research centre would cut the cost of solar thermal energy to 12 cents a kilowatt hour by 2020, down from 25 cents a kilowatt hour now.

“The situation right now is that even though this technology had its start in the United States in the 1990s, it wasn’t until 2005 there was been a commercial market for this technology,” he said.

“But this technology has a lot of potential and there is a lot of momentum right now.”

ASTRI is researching ways to cut the cost of building the solar power plants by up to 50%, boost the plants' operating hours by 50% to sell more electricity to the grid, improve plant efficiencies and reduce operating and maintenance costs.

Dr Blanco, who has worked in the field for almost 30 years and was previously in charge of solar thermal energy at Spain’s National Renewable Energy Centre (CENER), said Australia was well placed to lead research on the technology.

“I have a good outlook on what is happening in different countries with this technology and I came to the conclusion that what’s happening at CSIRO in Australia is very interesting indeed,” he said.

“Overall you have a large potential for solar radiation and you are located in a part of the world near a lot of other countries that are going to deploy this technology like India, South Africa and China. There’s a lot of demand emerging in developing countries for solar thermal energy.”

But UNSW environmental studies professor Dr Mark Diesendorf said medium-scale concentrated solar thermal (CST) required supportive government policies, such as feed-in tariffs, to stimulate the market.

“While the Australian government is funding research and development in solar energy, it is unfortunately reluctant to implement the necessary policies to build the market for medium-scale solar power stations, both photovoltaic and CST, and so to further reduce their costs.”

Dr Diesendorf said while CST was currently more expensive than solar photovoltaic, it had the advantage of storing overnight part of the heat energy it collected during the daytime.

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40 Comments sorted by

  1. Dr Graham Lovell

    logged in via Twitter

    Unfortunately, this article did not cite costs. Indeed, we should avoid the mistakes made in Spain where it appears that ideological intention overwhelmed the economics of the proposed solution.

    On the estimates of the noted solar-thermal booster, BZE, the current cost of solar thermal is between $A250 and $A300 MWh. Cutting this cost by half would reduce it to around $A125 MWh. This is still more expensive than the current cost of wind of c. $A100 MWh, or a similar likely cost for enhanced geothermal.

    Wind: http://australiancarbonprice.blogspot.com.au/2012/04/wind-power-in-south-aust-experiment-in.html
    Geothermal: http://australiancarbonprice.blogspot.com.au/2012/10/the-economics-of-geothermal-electricity.html

    Therefore, it is too early to talk about feed-in tariffs to support solar thermal, at least until there is a reasonable prospect that solar thermal will be cheaper than wind or enhanced geothermal.

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  2. John Newlands

    tree changer

    This article contains both questionable assumptions and key omissions. The phrase 'fossil fuel subsidies' needs a link so we can assure ourselves that these really exist and are harmful. There's also the curious omission of the LGC subsidy worth $33 per Mwh when I last looked. Solar thermal should eligible for that. Given that the Federal government was going to pay about 45% of the capital cost of the apparently mothballed Solar Flagships program I'd say that would be available also. That's not one but two subsidies and now they want a feed in tariff. Three bites at the cherry.

    Lastly there is the tiny problem of prolonged overcast or rainy weather. Several hours of heat storage won't be enough. To their credit they don't invoke the minor gas boost furphy. Cut straight to the chase...when is solar going to lead to the closure of Hazelwood?

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    1. Dr Graham Lovell

      logged in via Twitter

      In reply to John Newlands

      John, there are no "fossil fuel subsidies", despite the frequent repetition of this line.

      Perhaps this furphy arises because there is exemption from the fuel excise for export exposed industries.

      I would like to see the argument mounted by those who want to make our export industries less competitive. Indeed, the emphasis now should be on preserving our import-competing industries so that they are still viable, and employing workers, when the mining boom starts to slow.

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    2. Dr Graham Lovell

      logged in via Twitter

      In reply to Michael Shand

      As you correctly imply, one of the major advantages of solar thermal over wind and wave power production is that it can be managed (to some degree) to match demand.

      In addition, maximum power demand is from 2pm to 8pm on weekdays, so solar thermal power is a good fit with the actual demand.

      Nevertheless, even with this advantage, it still has to stack up economically if it is going to survive in our very competitive world. I look forward to seeing how this CSIRO project pans out.

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    3. Steve Hindle

      logged in via email @bigpond.com

      In reply to John Newlands

      I agree, the remark about "fossil fuel subsidies" needs a clear explanation.

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    4. Chris Owens

      Professional

      In reply to Dr Graham Lovell

      Graham, subsidies do exist in the form of fuel tax concessions, accelerated depreciation for the FF extractive industries and compensation payments to the major polluters. Referenced costs from EV: http://environmentvictoria.org.au/fossilfuelsubsidies calculate the subsidies at $9B PA.

      Our exchange rate largely driven by the extractive industries is the primary driver of our lack of international competitiveness. Whilst abolishing the subsidies would affect exposed industries, other tax concessions could offset increases so the net take was maintained and further drive a reduction in consumption.

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    5. John Newton

      Author Journalist

      In reply to John Newlands

      Firstly here is a link to the fossil fuel subsidies claim

      http://www.acfonline.org.au/fossil-fuel-subsidies

      Secondly, Solar Thermal technology can store energy, so the old overcast or rainy weather furphy doesn't stand up. Also, I have solar panels on my roof and even on overcast days they are delivering energy to the grid.

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    6. Henry Verberne

      Former IT Professional

      In reply to Dr Graham Lovell

      You can call them what you like but they are:

      . fuel tax credits (rebates on diesel used mostly by the generation and mining industry) worth about $5Billion.
      .Accelerated depreciation on fossil fuel assets worth about $680Million

      . There are other smaller "free kicks"totalling another $800mIllion+
      This needs to be wound back in my opinion.

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    7. Geoff Russell

      logged in via Facebook

      In reply to John Newton

      The issue isn't "do solar panels work" but "do they scale?"

      What happens if we put 3kw on all 7.6m households? Do the math... It will clean up just 3-4% of our energy consumption.

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    8. Dr Graham Lovell

      logged in via Twitter

      In reply to Chris Owens

      Thank Chris for your response (and also to Henry). Three of these four so-called fossil-fuel subsidies were already known to me:

      The diesel fuel tax rebate for export-exposed industries is not a fossil-fuel subsidy - it is a rebate for a tax. No-one can legitimately call this a subsidy, and if we wanted a fair discussion, this miss-naming would cease immediately.

      Accelerated deductions for depreciation for industries which have high up-front costs, such as oil-drilling. It is hard to call this…

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    9. Steve Hindle

      logged in via email @bigpond.com

      In reply to Chris Owens

      A tax concession is not a subsidy. To receive a subsidy is to be receiving government funding.

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    10. Robert McDougall

      Small Business Owner

      In reply to Dr Graham Lovell

      should the focus be on export industry competitiveness or developing a domestic renewable energy industry?

      Supporting and developing a renewable energy would certainly provide a great big pile of employment for manufacturing and construction.

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    11. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      if every house had 3kw PV systems on their roofs we certainly would need a lot less fossil fuels to make up the balance.

      Our energy consumption is 16% less than what it was anticipated to be. As more people become energy efficient and replace old appliances with more energy efficient ones, households will need less and less grid sourced energy.

      Through strengthening the Carbon Tax (cue lib/nat outrage i.e. big business/coal ) industry would be forced to follow the household example and improve…

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    12. Robert McDougall

      Small Business Owner

      In reply to Steve Hindle

      but it can amount to the same thing.

      if it takes x amount of dollars to operate a commercial enterprise and you get y of those dollars back from the taxpayer (not talking about profit) then in effect (though perhaps not technically) the taxpayer is contributing to the commercial enterprises operating costs over and above retail pricing.

      That in my mind is subsidising the commercial operation.

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    13. Geoff Russell

      Computer Programmer, Author

      In reply to Robert McDougall

      No Robert ... not "a lot less". A totally trivial amount less. The Copenhagen Diagnosis (2009) calculated the the long term sustainable emissions for each of the 9 billion people on the planet by about 2050 is 1 tonne per person per year. Australia is running at about 25 tonnes. You can't achieve the gains required with incremental shifts, you need a game changer. We currently generate over 800 gms-co2/kwh. Germany is at 468 gms-co2/kwh.

      http://www.iea.org/publications/freepublications/publication

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    14. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      personally i would support nuclear, but only LIquid Flouride Thorium Reactors. Uranium solid fuel based reactors, although the risk of incident is quite low (and not addressing the issues with the waste and weapons grade bi-products) the impact of an incident is wide and incredibly damaging, e.g. Fukishima (and note radioactive materials from that incident are now washing up on the US coast).

      Re transport of things like grain, domestically the answer is localised production, which in term creates…

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    15. Geoff Russell

      Computer Programmer, Author

      In reply to Robert McDougall

      "radioactive materials ...washing up on the US coast" ... so what? You can detect Sydney pollution in Antarctica ... you can detect carcinogens from the cattle industry bush fire burns (or any other bush fires) in northern Australia anywhere you'd care to put accurate enough monitoring equipment. But can you detect actual illness? No.

      Ladders, not dangerous? 40 people per year with major trauma and 1000 presenting at emergency departments from ladder falls ... and that's just in Victoria. Ladders…

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    16. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      sorry geoff, i guess we will just have to agree to disagree.

      I guess we see/hope the world develops along different lines, time will tell.

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    17. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      just on another point. does the single small modular 100mw you refer to use uranium solid rod fuel or liquid flouride Thorium?

      Uranium - I would never support, nasty dirty poisonous process (imho)

      Liquid Flouride Thorium - support whole heartedly

      still cant stop laughing about you how you refer to solar being hugely polluting and land destroying, but your entitled to your view

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    18. Robert McDougall

      Small Business Owner

      In reply to Robert McDougall

      scuse me, got to go take my life into my hands and get up on a ladder and clean the gutters, hope i don't die

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    19. Geoff Russell

      Computer Programmer, Author

      In reply to Robert McDougall

      Australian cities/town occupy about 1.4 million hectares. Moree Solar Farm is 1120 hectares for 400 GWh/yr. So to provide all our 240 TWh/yr, we'd need 600 ... about 660,000 hectares of land levelled and largely wildlife free. To entirely decarbonise our energy would require about 3,000 of these on about 3.3 million hectares of habitat destruction and 21 million B-double truckloads of stuff. The MSF is about double the efficiency of most solar because of its tracking systems. With more conventional…

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    20. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      I Suppose a plastic hip and jippy knees would make climbing a ladder a little bit treacherous

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    21. robin linke

      stamp dealer

      In reply to John Newton

      John, Give me the geographical location of a Solar Thermal power station that can generate 1000Mw to replace one coal fired power station, that can store energy without the need for backup , that costs around $3.5 billion without subsidies. If you cannot answer then your ideas are fantasies.
      Unless your politically correct roof top solar panels can be replicated on a large scale in Lagos, Mexico City, Mumbai, Jakarta, Sao Paolo, Delhi, Manila, Calcutta, Cairo, Karachi, Lima, Bogota etc etc etc
      then the fact that they dribble energy into the grid on cloudy days is meaningless.
      This is a global problem.
      If you genuinely want to make a difference and create and promote competitive Australian industries and jobs instead of taxing them just say YES to Nuclear & Hydro Carbon free baseload

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  3. Peter Sommerville

    Scientist & Technologist

    Really not much meat to this article. It is really about aspirations, which CSIRO seems to do much more thee days since its basic funding model was changed some years ago. I hope the aspirations are realised, but based on personal experience I am somewhat sceptical. Nevertheless, good luck.

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  4. Geoff Russell

    logged in via Facebook

    Far too much meat in this article but zero fibre. I.e. plenty of claims but no evidence. How were the costs calculated? Did they include transporting materials to the site? And the eis for every hectare of the vast areas involved? And the costs to displaced wildlife of habitat destruction?

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    1. Geoff Russell

      logged in via Facebook

      In reply to Geoff Russell

      For example, the Moree Solar Farm estimated 7200 b-double truck loads of material transported on a 1200 km round trip over 4 years to cover 1100 ha with panels to generate 400 GWh/yr. So to provide all our current 240 TWh/yr, we need 600 of these and to decarbonise all our energy we need about 3000. So 3000x7200= 21.6 million b-double trucks driving 1200 km = 26 billion km. This would occupy ALL our articulated trucks for 4 full years. and so far we haven't built even one large solar PV/thermal power station.

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    2. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      ask the same questions of the mining industry in its pursuit of fuels to provide energy generation. I'm pretty sure the impact of the fossil fuels on the issues you raise are much much higher given the seriously increased areas impacted by their activities.

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    3. Robert McDougall

      Small Business Owner

      In reply to Geoff Russell

      ok, then calculate the number of trips, fuel, infrastructure impacts etc of csg, coal, offshore natural gas, petroleum of all the operations that involve extraction of these resources and compare them to your calculation. Also, the ongoing costs associated with the ongoing exportation and transportation of these materials.

      You would probably find that the costs with these industries exceed renewables by levels of magnitude.

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  5. John Newlands

    tree changer

    If we are going to call the diesel excise rebate a subsidy then every tax break should be treated the same way, for example child care. Billions squandered in subsidies for children! (therefore a few dollars spent on solar thermal X is no big deal) There are some other cost anomalies seldom mentioned such as below market price coal from the NSW govt owned Cobbora mine.

    A disturbing aspect of solar thermal is the way leading developer Spain has gone backwards with youth unemployment over 50%. Now one of their experts has jumped ship. As with dodgy carbon credits we seem to copy Europe's mistakes.

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    1. Robert McDougall

      Small Business Owner

      In reply to John Newlands

      i agree that middle class welfare is a subsidy.

      Baby bonus and Maternity/Paternity Leave - subsidising having babies
      School Bonus - subsidising parental school costs
      Family tax Benefit a & B - subisiding the "family unit"

      Dont link solar thermal with the impacts of the GFC and dodgy politicians and their deals. That is the realm of greed and power, but not energy generation.

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  6. Gerard Dean

    Managing Director

    This article has to be some sort of joke!

    Take this statement. " ASTRI is researching ways to cut the cost of building the solar power plants by up to 50%, boost the plants' operating hours by 50% to sell more electricity to the grid, improve plant efficiencies and reduce operating and maintenance costs."

    Are these scientists seriously saying they can cut the cost of 3 major cost areas in CST by 50% in less than 7 years. Imagine putting that on a prospectus, they would be locked up. How do…

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    1. Robert McDougall

      Small Business Owner

      In reply to Gerard Dean

      same could be argued about some of your arguments.

      Face it, Fossil Fuels (yes even JetA1) are LIMITED. there is a FINITE amount of it. With tremendous externalised costs not included in their cost equations.

      Renewable power is also finite, but with a life expectancy of around another 8 billion years or so.

      Given the pollution, degradation, health and environmental impacts (not talking about AGW) of fossil fuel use, surely it is far more intelligent to develop those technologies that will eliminate these impacts as far as practicable.

      The only reason for closing your eyes and arguing against the development of these NECESSARY technological advances is self interest.

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    2. Gerard Dean

      Managing Director

      In reply to Robert McDougall

      Well Mr McDougall

      You agree with me that JetA1 fuel is finite. The pity is that many others who believe in the reality of climate change and the need to cut fossil fuel usage choose to burn it to fly to Europe for pleasure.

      Funny old world, isn't it!

      Gerard Dean

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    3. Robert McDougall

      Small Business Owner

      In reply to Gerard Dean

      I personally think part of the answer is being local, production, generation, consumption and recreation.

      Not onl in terms of resource use, but also In terms of supporting local economies.

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    4. Dr Graham Lovell

      logged in via Twitter

      In reply to Gerard Dean

      Why are you so angry?

      Of course costs can be be cut by 50% in 7 years, if there is a breakthrough in the research.

      It is in the nature of research projects that the outcomes cannot be put in a prospectus: your assertion is a strawman, and should be treated as such.

      Yes, the Spanish experience does not fill us with great confidence, but research is relatively cheap (compared to trials and demonstration plants). Going to trials too early is where Spain went wrong. Similarly, BZE are on the wrong track promoting a trial when their project has a projected cost of $250 MWh (against even wind of $100 MWh).

      Please, everyone, take a Bex and lie down! It will all come out in the wash: http://australiancarbonprice.blogspot.com.au/2012/12/doha-failures-will-not-end-climate.html

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    5. Gerard Dean

      Managing Director

      In reply to Dr Graham Lovell

      Dr Lovell

      I am not angry, I am a realist. Cutting costs across an industry is the result of hard work and incremental improvement year after year. Very rarely does a 'breakthrough' result in dramatic cost savings quickly. Any breakthrough technology will have to run the gamut that faces all new technology- what is it, is it safe, is it practical, does it work over the long term and who will fund it?

      Solar energy will push ahead and incrementally improve over time. Cutting the cost by 50% by 2020 is never going to happen,

      Gerard Dean

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  7. Ivan Quail

    maverick

    Solar can provide daytime power which reduces the need for fossil fuel burning and Co2 emissions but it needs back-up.

    The Tides of the Kimberly can generate 10 times more electricity than we currently generate in the whole of Australia. Installed National generating capacity is about 60Gwatts

    Too far away you think. A 6G/watt (6,000Mw) bulk HVDC power line can transmit the power to Sydney for a cost of 1c per Kw hr. It is cheaper to build and operate a bulk HVDC transmission line than a…

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    1. Gerard Dean

      Managing Director

      In reply to Ivan Quail

      "The tides of the Kimberley can supply 80% of our electricity.."

      True there is a lot of energy in the tides. Unlike wave energy which has proved a disaster because big waves smash the equipment, tide energy utilises flow which can be harvested using reversible turbines,

      BUT, and it is a big but. There will be a myriad of technical, environmental and political problems implementing this power. Why?

      - Environmental. The earthworks and harbourworks to build suitable damming areas and structures…

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