CSP could provide 30% of Australia’s electricity

Concentrating solar power (CSP) could provide around 30% of Australia’s total current electricity generation capacity with only modest extensions to the national electricity grid if forecast cost reductions are achieved, finds a report released by the Australian Solar Institute (ASI).

“CSP systems, with storage, offer large-scale clean energy generation that can provide electricity for peak times, as well as baseload power or the electricity to meet consumers’ long-term demands,” said ASI Executive Director Mark Twidell.

“Importantly, CSP can be efficiently integrated into existing and new coal and gas power plants to reduce emissions for a least-cost transition to a low-emission future.”

The report, Realising the Potential of Concentrating Solar Power in Australia, was commissioned by the ASI to to accelerate the technology’s development in Australia.

There is a significant cost-revenue gap that is deterring investment in the technology but this can be closed with concerted action, said the lead author of the report, Dr Keith Lovegrove, IT Power Australia.

“The cost-revenue gap is likely to close over the next decade as plant costs fall through global deployment and technology improvement, and available revenue rises as clean energy grows in value. Australia could contribute significantly to this evolution,” Dr Lovegrove said.

“The report also found that if further action is taken now, Australian CSP deployment could realistically reach 2000 megawatts by 2020. By then, around 4000 people would be employed in construction and ongoing operations, with the majority of these jobs in regional areas.”

The report outlines four actions that will help drive CSP deployment in Australia. First, while continuing to focus on lowering cost, the CSP sector should work with governments and regulators to increase the reward for clean energy systems that better correlate generation to real-time electricity demand. Second, the CSP sector should better communicate the technology’s value proposition to key stakeholders to increase awareness of its potential.

Third, the sector should work with governments, regulators and service providers to preapprove and provide connections for CSP systems in selected areas of high solar resource to help lower first-of-a-kind development costs.

Finally, the sector should leverage continued public and industry investment in research, development and demonstration activity to lower costs and build confidence in the technology.

“Building on Australia’s solar research and development expertise, great solar resource and skilled workforce, there is clearly an outstanding opportunity for an Australian CSP industry to progress the technology along the familiar curve that traces the early stages, fast deployment and eventual maturity of a technology adoption,” Twidell said.

The report was written by IT Power Australia as part of a study commissioned by ASI. ASI is a $150 million commitment by the Australian Government to support the development of photovoltaic and concentrating solar power technologies in Australia. The Australian Government is supporting the development of renewable energy through its price on carbon, starting on 1 July, and over $17 billion of investment in renewable energy. This includes the establishment of the Australian Renewable Energy Agency and the Clean Energy Finance Corporation, both of which are independent bodies that will make investments to develop renewable energy technologies and to help lower their costs.