Development Trends and Economics of Concentrating Solar Power Generation Technologies: A Comparative Analysis

Reinhard Madlener and Tobias Mathar
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Tobias Mathar: RWTH Aachen University, Postal: Schinkelstrasse 6, 52056 Aachen, Germany

No 1/2009, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: In this paper we compare development trends, economics and financial risks of alternative large-scale solar power generation technologies (parabolic trough, solar tower, and three different photovoltaic technologies). In particular, a number of European countries, Algeria and the US promote solar power generation. In oure study, we investigate the economic viability of the solar trough projects Andasol-I (Spain), Nevada Solar One (US), the solar tower projects PS-10 and Solar Tres (Spain), and the three PV projects Solarpark Waldpolenz (Germany), Parque Solar Beneixama (Spain) and Nellis Solar Power Plant (US). To this end, we employ a battery of economic indicators, such as net present value (NPV), return on investment (ROI), alternative discount rate (ADR), and amortization time (Ta), and also perform a detailed sensitivity analysis. We find that, in the absence of subsidization, current solar technologies cannot compete with conventional power plant technologies. Overall, we conclude that for realizing the Europe-Middle East-North Africa (EUMENA) Mediterranean ring connection, more research and development is needed on solar power generation technologies for making them sufficiently attractive on economic grounds.

Keywords: Concentrating solar power; CSP; profitability (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-11, Revised 2010-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:fcnwpa:2009_001

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