Solar thermal has been hot lately (pardon the pun).
This weekend, President Obama doled out $1.45 billion in loan guarantees for Abengoa’s 250 MW, molten-salt farm in Gila Bend, Arizona. Two months earlier, the Department of Energy dispatched another $62 million for technology development and component design.
Among the winners of the DOE award were Pratt & Whitney’s Rocketdyne, Abengoa and eSolar – which finally last week elaborated on the project it has underway with Babcock & Wilcox. The two companies will use $10.8 million in funding to build and test modular plant components, including a molten-salt receiver, a molten salt to steam heat exchanger and a molten-salt storage system.
The move to molten salt is new direction for eSolar, which up to now has relied on directly heating water to produce steam. The funding will “accelerate the research and development of (the) economic storage” of solar thermal power generation capacity to extend the operating range of plants, says eSolar CEO John Van Scoter.
But despite the new funding, all is not well in the industry. Falling photovoltaic prices pressure plant development at a time when vendors struggle to find financing for a new generation of tower-oriented farms.
These pressures already resulted in the cancellation of two eSolar project, according to a published reports, including one on Green Wombat. PG&E decided to scale back the Alpine SunTower farm in California and replace eSolar’s field of heliostats with PV panels.
A second New Mexico facility where El Paso Electric is to receive power also is switching to PV.
ESolar and partner NRG Energy said in a statement that downsizing the California plant from 92 MW to 66 MW was the result of limited transmission capacity at the site.
But more than transmission, the challenge for solar-thermal developers is low-cost solar panels. PV prices fell sharply last year, and plant financing has become easier. Perhaps the DOE recognized this with its May funding awards urging the developing of lower cost solar thermal technology. According to eSolar, the goal of its work with Babcock and Wilcox will be to achieve the lowest levelized electricity cost of any utility scale solar thermal plant.
That means allowing plant components to be built in a factory and shipped fully assembled to a site. This will simplify permitting and construction.
The completion of the work with Babcock & Wilcox is 2.5 years away. Seems as if there is no time to waste.
Posted by Mark Boslet 