Concentrating Solar Power
2024 ATB data for concentrating solar power (CSP) are shown above. The base year is 2022; thus, costs are shown in 2022$. CSP costs in the 2024 ATB are based on cost estimates for CSP components (Kurup et al., 2022a) that are available in Version 2023.12.17 of the System Advisor Model (SAM), which details the updates to the SAM cost components. Future year projections are informed by the literature, National Renewable Energy Laboratory (NREL) expertise, and technology pathway assessments for reductions in capital expenditures (CAPEX) and operation and maintenance (O&M) costs.
The three scenarios for technology innovation are as follows:
- Conservative Technology Innovation Scenario (Conservative Scenario): No change in CAPEX, O&M, or capacity factor from base year estimates (2022 for CSP) to 2050.
- Moderate Technology Innovation Scenario (Moderate Scenario): Projection based on recently published projections and NREL judgment of potential innovations in the power block, receiver, thermal storage, and solar field. It is anticipated that the ATB CSP 2022 CAPEX of $7,912/kilowatt-electric (kWe) could drop by approximately 35% to $5,180/kWe by 2030. From 2030 to 2050, CSP CAPEX is projected to fall to approximately $4,455/kWe.
- Advanced Technology Innovation Scenario (Advanced Scenario): Projection based on 1) the increased deployment of CSP based on hitting U.S. Department of Energy (DOE) Solar Energy Technologies Office cost targets (Murphy et al., 2019), the lower bound of the literature sample, and 2) on the Power to Change report (IRENA, 2016), consistent with innovations in power block, receiver, and thermal storage to accommodate higher-temperature systems and modularity in the solar field. It is anticipated that for the Advanced Scenario, the ATB CSP 2022$ CAPEX of $7,912/kWe could drop to $4,165/kWe by 2030. From 2030 to 2050, CSP CAPEX could fall to approximately $3,150/kWe (EIA, 2022).
Resource Categorization
The solar resource is prevalent throughout the United States, but the Southwest is particularly suited to CSP plants. The direct normal irradiance (DNI) resources across the Southwest, which are some of the best in the world, range from 6.0 kilowatt hours/square meters/day (kWh/m2/day) to more than 7.5 kWh/m2/day (Roberts, 2018). The raw resource technical potential of seven states (Arizona, California, Colorado, Nevada, New Mexico, Utah, and Texas) exceeds 11,000 gigawatts-electric (GWe), which is almost tenfold the current total U.S. electricity generation capacity; some regions in these states have an annual average resource greater than 6.0 kWh/m2/day (Mehos et al., 2009).
For illustration in the ATB, a range of capacity factors calculated in SAM Version 2023.12.17 is associated with three resource locations in the contiguous United States for three classes of insolation:
- Class 8: Abilene Regional Airport, Texas: 6.16 kWh/m2/day based on the site Typical Metrological Year (TMY); the TMY file available from the National Solar Radiation Database (NSRDB) Data Viewer.
- Class 3: Phoenix, Arizona: 7.34 kWh/m2/day based on the site PSM TMY3; the TMY file used is available in SAM Version 2022.11.21 as phoenix_az_33.450495_-111.983688_psmv3_60_tmy.
- Class 2: Daggett, California: 7.67 kWh/m2/day based on the site PSM TMY3 file; the TMY file used is available in SAM Version 2022.11.21 as daggett_ca_34.865371_-116.783023_psmv3_60_tmy.
CSP Resource Class | DNI (kWh/m2/day) | Available Resource (GW) |
Class 1 | >7.75 | 114 |
Class 2 | 7.50–7.75 | 677 |
Class 3 | 7.25–7.50 | 1,251 |
Class 4 | 7.00–7.25 | 1,381 |
Class 5 | 6.75–7.00 | 1,098 |
Class 6 | 6.50–6.75 | 1,252 |
Class 7 | 6.25–6.50 | 1,282 |
Class 8 | 6.00–6.25 | 1,850 |
Class 9 | 5.75–6.00 | 1,725 |
Class 10 | 5.50–5.75 | 1,495 |
Class 11 | 5.25–5.50 | 1,925 |
Class 12 | 5.00–5.25 | 2,641 |
Source: (Murphy et al., 2019). Starting with the 2021 ATB, Class 1 is the best resource.
In the United States, CSP plants are already found in Arizona, California, Florida, and Nevada. California can be considered the most representative location for new plants in the United States because of the excellent resources there.
Scenario Descriptions
CSP research for both current and future advanced technologies is primarily in four main areas: the power block, the receiver, thermal storage, and the solar field. The following table highlights key innovation and research trends for the three ATB technology innovation scenarios.
Scenario | Power Block | Receiver | Thermal Storage | Solar Field |
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Conservative Scenario | Technology Description: No change is expected if costs stay similar to base year costs. | Technology Description: No change is expected if costs stay similar to base-year costs. | Technology Description: No change is expected if costs stay similar to base-year costs. | Technology Description: No change is expected if costs stay similar to base-year costs. |
Moderate Scenario | Technology Description: The supercritical cycle (supercritical carbon dioxide [sCO2]) operates at 565°C with today's solar salts. Justification: The DOE Supercritical Transformational Electric Power program and other countries (e.g., China) are researching the use of sCO2 with today's salts. | Technology Description: Advanced coatings are applied to today's receiver technology. Justification: Testing of the coatings has found increased selective absorption and enhanced durability.
| Technology Description: Storage tank designs, pumps, and component configurations are improved. Justification: Engineering studies to improve designs are ongoing. | Technology Description: Improvements in heliostat installations lead to decreases in costs as a result of increased deployment and learning. Justification: The global pipeline of projects is significant, and projects are currently being constructed.
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Advanced Scenario | Technology Description: An elevated-temperature (>700°C) sCO2 power block is used. | Technology Description: A high-temperature receiver consistent with >700°C power cycle is used. | Technology Description: Advanced storage media compatible with >700°C delivery is used. | Technology Description: Very low-cost, modular solar fields with increased solar field efficiency are deployed. |
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Projections of CAPEX and O&M for future utility-scale CSP plants are based on the three technology innovation scenarios developed for scenario modeling as bounding levels. In general, differences among the scenarios reflect different levels of adoption of innovations. Reductions in technology costs reflect the following cost-reduction opportunities:
- Power tower improvements
- Better and longer-lasting selective surface coatings improve receiver efficiency and reduce O&M costs.
- Advanced heat transfer fluids allow higher operating temperatures and lower-cost thermal energy storage.
- Development of the power cycle running at approximately 700°C and 55% gross efficiency improves cycle efficiency, reduces power block cost, and lowers O&M costs.
- Heliostat field improvements
- Significantly lower-cost heliostats are developed as a result of design changes and automated and high-volume manufacturing.
- General and soft cost improvements
- Expansion of the world market leads to greater and more efficient supply chains and reduced supply chain margins (e.g., profit and overhead charged by suppliers, manufacturers, distributors, and retailers) (Kurup et al., 2022b).
- Expansion of access to a range of innovative financing approaches and business models reduces costs.
- Greater deployment volume and learning are assumed for 2022 and onward based on the current state of industry (IRENA, 2016); (Lilliestam et al., 2017).
These improvements are reflected in the following tables.
Scenario Assumptions
The scenarios for CSP described above have the following deployment assumptions underlying the cost curves.
Scenario | Base Year: 2022 | 2030 | 2050 |
Conservative Scenario | A molten-salt (sodium nitrate/potassium nitrate, i.e., solar salt) power tower with direct two-tank thermal energy storage (TES) combined with a steam-Rankine power cycle. | No changes in technology and costs, with similar levels of deployment. | No significant learning effects. |
Moderate Scenario | A molten-salt (sodium nitrate/potassium nitrate, i.e., solar salt) power tower with direct two-tank TES combined with a steam-Rankine power cycle. | Increased deployment across the world, leading to learning, cost decreases, and supply chain improvements. Near-term cost reductions in the heliostat and TES. | Longer-term cost reductions (e.g., in the heliostats, TES, and power system). Increased deployments and learning. |
Advanced Scenario | A molten-salt (sodium nitrate/potassium nitrate, i.e., solar salt) power tower with direct two-tank TES combined with a steam-Rankine power cycle. | Decreased costs based on molten-salt power tower with direct two-tank TES combined with a power cycle running at 700°C and 55% gross efficiency. | Very low-cost heliostats and TES, with significant cost reductions. Significant growth in advanced sCO2 cycle development. |
The cost curves are derived using the learning rates in the following table.
Scenario | Base Year–2030 | 2030–2050 |
Conservative Scenario | 0% | 0% |
Moderate Scenario | 10–12% cost decrease of the CAPEX per doubling of historic cumulative capacity (Breyer et al., 2017) | 10–12% cost decrease of the CAPEX per doubling of historic cumulative capacity (Breyer et al., 2017) |
Advanced Scenario | 10–15% cost decrease of the CAPEX per doubling of the capacity | 20% cost decrease of the CAPEX per doubling of the capacity (Murphy et al., 2019) |
Representative Technology
CSP technologies capture the heat of the sun to drive a thermoelectric power cycle. The most widely deployed CSP technology uses parabolic trough collectors. As of 2022, of the 6,300 megawatts (MW) of installed and operating CSP capacity in the world, more than 4,700 MW were operational parabolic trough CSP (REN21, 2023). In the 2024 ATB, the representative CSP technology is assumed to be molten-salt power towers because indications are molten-salt power towers have the greatest cost reduction potential (Mehos et al., 2017).
CSP in general and power towers (e.g., based on the global deployment of less than 2 GWe) can be considered early in their deployment life. As such, there are still challenges and difficulties the CSP sector and power towers have faced from previous projects. For power towers relative to troughs, the main operating issue includes reliability concerns of such systems, with the key challenges being connected to the molten-salt-related systems (e.g., heat trace, valves, receiver, and storage tanks). The main concerns that R&D is looking to address for power towers include the attenuation and effects of aerosols on towers, transient behavior of the heliostat field and power block, and soiling effects of the heliostats in the difficult desert environments in which power towers operate (Mehos et al., 2020).
Thermal energy storage (TES) is accomplished by storing molten salt in a two-tank system that includes a hot-salt tank and a cold-salt tank. Stored hot salt can be dispatched to the power block as needed, regardless of solar conditions, to continue power generation and allow electricity generation after sunset. CSP technology in the 2024 ATB is represented as 102 net-MWe molten-salt power tower plants, which use today's sodium and potassium nitrate salts, with 10 hours of TES using a two-tank molten-salt system. This configuration is similar to the Crescent Dunes CSP plant in Nevada, is representative of new global CSP development, and has the potential for further cost reductions relative to other configurations, such as parabolic trough projects.
As of July 2022, CSP plants under construction had a combined capacity of approximately 2.4 GWe, mostly located in China (Thonig and Lilliestam, 2022). Power towers account for 70% of the projects, parabolic troughs for 25%, and linear Fresnel for the remaining 5%. All projects but one—the Redstone project in South Africa—are co-located with solar PV, indicating a trend toward hybrid systems. The first phase of Dubai Electricity and Water Authority's (DEWA’s) Noor Energy 1 parabolic trough project was the only CSP installed in 2022, increasing global capacity by 200 MW (REN21, 2023). Molten-salt power tower plants have been built in Chile (e.g., the Cerro Dominador molten-salt power tower plant was synchronized with the grid in 2021 (Roca, 2021)) and in Dubai, United Arab Emirates (NREL, Concentrating Solar Power Projects (Noor Energy 1, 2022)).
The largest CSP plant in the world is the 700-MW combined parabolic trough and power tower system in Dubai. Completed in 2023, this DEWA 700-MW complex (with an additional 250 MW of photovoltaics) comprises 600 MW of parabolic troughs (i.e., 3 × 200-MW trough plants) and a 100-MW power tower site, with each plant having 12–15 hours of TES (Noor Energy 1, 2022); (SolarPACES, 2019); (Lilliestam and Pitz-Paal, 2018). In 2021, Noor III, a 150-MWe molten-salt power tower with 7.5 hours of storage, was exceeding performance expectations (Yvonne Kamau, 2021).
Current indications are that molten-salt power towers have the greatest cost reduction potential in terms of both CAPEX and levelized cost of energy (LCOE) (IRENA, 2016), (Mehos et al., 2017)). These towers are part of the DOE Generation 3 (Gen3) roadmap for the next generation of commercial CSP plants (Mehos et al., 2017).
Crescent Dunes (110 MWe with 10 hours of storage) was the first large molten-salt power tower plant in the United States. It was commissioned in 2015 with a reported installed CAPEX of $8.96/watts alternating current (WAC) ((Danko, 2015), (Taylor, 2016)). Despite the emergence of power tower systems, the CSP landscape is still dominated by parabolic trough systems. The United States is home to the following:
- Three operational power tower plants totaling 392 MWe (e.g., the Ivanpah project) (SolarPACES, 2020); (EIA, 2022)
- Eight operating parabolic trough projects totaling approximately 1,500 MWe ((EIA, 2021); NREL, Concentrating Solar Power Projects in the United States).
The CSP technologies highlighted in the 2024 ATB are assumed to be power towers, but they have different power cycles and operating conditions as time passes, as shown in the following table.
Scenario | Description |
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2022 | A molten-salt (sodium nitrate/potassium nitrate, i.e., solar salt) power tower with direct two-tank TESs combined with a steam-Rankine power cycle running at 574°C and 41.2% gross efficiency |
2030: Moderate Scenario | Longer-term cost reductions (e.g., in the heliostats, TES, and power block) |
2030: Advanced Scenario | A low projection based on molten-salt power tower with direct two-tank TES combined with a power cycle running at 700°C and 55% gross efficiency |
Though an advanced molten-salt projection is used for the Advanced Scenario, lower costs for baseload CSP are being investigated via different technology options (e.g., solid particle and gas phase towers) and as defined by the DOE Gen3 program ((Mehos et al., 2017); DOE, Goals of the Solar Energy Technologies Office).
Methodology
This section describes the methodology to develop assumptions for CAPEX, O&M, and capacity factor. For standardized assumptions, see labor cost, regional cost variation, materials cost index, scale of industry, policies and regulations, and inflation.
For the 2024 ATB, various factors are used to demonstrate the range of LCOE and performance across the United States, including the following:
- CAPEX is determined using manufacturing cost models and is benchmarked with industry data. CSP performance and costs are based on the molten-salt power tower technology with dry cooling to reduce water consumption.
- O&M costs are benchmarked against industry data.
- Capacity factor varies with inclusion of TES and solar irradiance. The listed resource classes assume power towers with 10 hours of TES at three types of locations.
CSP costs in the 2024 ATB are based on cost estimates for CSP components available in Version 2023.12.17 of SAM. (Turchi et al., 2019); (Kurup et al., 2022a) detail the updates to the SAM cost components including the heliostats. DOE’s Solar Energy Technologies Office uses more-conservative financial terms, which results in higher LCOE values than are obtained using the ATB methodology (SolarPACES, 2021); (REN21, 2022); (Roca, 2021); (Noor Energy 1, 2022); (EIA, 2022).
Future year projections are informed by the literature, NREL expertise, and technology pathway assessments for CAPEX and O&M cost reductions. Three projections are developed for scenario modeling as bounding levels:
- Conservative Scenario: No change in CAPEX, O&M, or capacity factor from base year estimates (2021 for CSP) to 2050.
- Moderate Scenario: Based on recently published projections and NREL judgment of U.S. costs for future CAPEX in 2025, 2030, 2040, and 2050 ( (IRENA, 2016); (Breyer et al., 2017); (Feldman et al., 2016); (World Bank, 2014)). From analysis of these sources, it is anticipated that the 2022 CAPEX of $7,912/kWe could drop by approximately 35% to $5,180/kWe by 2030. From 2030 to 2050, CAPEX is projected to fall to approximately $4,455/kWe.
- Advanced Scenario: Based on the lower bound of the literature sample and on the Power to Change report (IRENA, 2016).
Capital Expenditures (CAPEX)
Definition: For plants whose construction duration exceeds 1 year, CAPEX costs represent technology costs that lag current-year estimates by at least 1 year. For CSP plants, the construction period is typically 3 years.
For the 2024 ATB—and based on key sources ((EIA, 2016); (Turchi, 2010); (Turchi and Heath, 2013))—the CSP generation plant envelope is defined to include items noted on the definitions page.
In the 2024 ATB, CAPEX does not vary with resource.
Base Year: The CAPEX estimate (with a base year of 2022) is approximately $7,912/kWe in 2022$. It is for a representative power tower with 10 hours of storage and a solar multiple of 2.4 based on a recent assessment of the industry in 2022 and updated CSP system costs reflected in SAM Version 2023.12.17 (Turchi et al., 2019); (Kurup et al., 2022a).
Note the CAPEX for the representative CSP plant in the ATB Data is estimated in the base year with three main portions:
- Turbine capital costs include the power cycle, balance of plant, and indirect and direct contingencies.
- Storage capital costs include the hot and cold tanks, molten-salt inventory, heat exchangers for the storage system, and indirect and direct contingencies.
- Field capital costs include the heliostat installed cost, site improvements, tower, receiver, and indirect and direct contingencies.
Future Years: Three cost projections are developed for CSP technologies:
- Conservative Scenario: No change in CAPEX, O&M, or capacity factor from base year estimates (2022 for CSP) to 2050; consistent across all renewable energy technologies in the 2024 ATB.
- Moderate Scenario: Based on recently published projections and NREL judgment of U.S. costs for future CAPEX in 2025, 2030, 2040, and 2050 ((IRENA, 2016); (Breyer et al., 2017); (Murphy et al., 2019); (Feldman et al., 2016); (World Bank, 2014)). From analyses of these sources, it is anticipated that the 2022 CAPEX of $7,912/kWe could drop by approximately 35% to $5,180/kWe by 2030. From 2030 to 2050, CAPEX is projected to fall to approximately $4,455/kWe.
- Advanced Scenario: Based on the lower bound of the literature sample and on the Power to Change report (IRENA, 2016).
Considering currently reported CAPEX for plants either announced or in construction, $7,912/kWe in 2022 and $5,180/kWe in 2030 are possible. For example, the Noor III CSP power station in Morocco—a 150-MWe molten-salt power tower with 7.5 hours of storage that became operational in 2018—has an estimated CAPEX of $6,500/kWe in 2018$ (Kistner, 2016). DEWA has an estimated bundled CAPEX of $5,500/kWe in 2018$ ((Shemer, 2018); (Turchi et al., 2019)).
A range of literature projections is shown in the chart below to illustrate the comparison with the 2024 ATB. When comparing the 2024 ATB projections with other projections, note there are major differences in technology assumptions, radiation conditions, field sizes and solar multiples, storage configurations, and other factors. As shown in the chart, the Moderate Scenario projection is in line with other recently analyzed projections from other organizations. The Advanced Scenario ATB projection is based on the lower bound of the literature sample and on the Power to Change report (IRENA, 2016).
Use the following tables to view the components of CAPEX and how they change with the scenarios.
Operation and Maintenance (O&M) Costs
Definition: O&M costs represent the annual expenditures required to operate and maintain a CSP plant over its lifetime, including items noted on the definitions page.
Base Year: Fixed O&M (FOM) is assumed to be approximately $74.6/kW-yr in 2022. Variable O&M is approximately $4.0/MWh in 2022 and $3.8/MWh after 2022 (Kurup and Turchi, 2015).
Future Years: Future FOM costs are assumed to decline until 2030 to approximately $55/kW-yr in the Moderate Scenario (i.e., approximately a 25% drop) and approximately $45/kW-yr by 2030 in the Advanced Scenario (i.e., approximately a 40% drop) based on DOE investments likely to help lower costs (DOE, 2012).
Use the following table to view the components of OPEX.
Capacity Factor
Definition: Capacity factors are influenced by power block technology, storage technology and capacity, solar resources, expected downtime, and energy losses. The solar multiple is a design choice that influences the capacity factor.
Base Year: The 2024 ATB capacity factors are generated from plant simulations using SAM Version 2023.12.17 at the resource locations identified below, with 10 hours of storage, and corroborated by operating data:
- Class 8: Abilene Regional Airport: leads to a 51.4% capacity factor
- Class 3: Phoenix, Arizona: leads to a 64.7% capacity factor
- Class 2: Daggett, California: leads to a 66.6% capacity factor.
In all three cases above, the solar field design is consistent. A key finding of (Murphy et al., 2019) is if future costs of CSP decrease sufficiently, CSP could be deployed across a greater range of the United States and DNI resources, such as in Texas as highlighted in the lower DNI example. For example, with aggressive cost decreases and given regional market constraints, southeastern states with lower DNI resources (e.g., Florida and South Carolina) could see CSP capacity deployments of up to 5 GWe (Murphy et al., 2019).
Future Years: The future capacity factor projections for the Conservative, Moderate, and Advanced scenarios are unchanged from the Base Year. Technology improvements are focused on CAPEX and O&M cost elements.
Over time, CSP plant output may decline. Capacity factor degradation because of the degradation of mirrors and other components is not accounted for in the 2024 ATB estimates of capacity factor or LCOE.
Estimates of capacity factors for CSP in the 2024 ATB represent typical operations and are based on the location's DNI. The dispatch characteristics of these systems are valuable to the electric system in managing changes in net electricity demand. Actual capacity factors will likely be influenced by the degree to which system operators call on CSP plants to manage grid services.
References
The following references are specific to this page; for all references in this ATB, see References.