2014: A year in review

As the year comes to an end, we wanted to take stock of the CSP industry through a review of our most read articles. Enjoy your journey through an eventful 2014!

By Ángela Castillo

January - Saudi Government determined to use solar

Saudi Solar Energy Forum 2012. Image: Saudi Solar Energy Forum. 

The year kicked off with the announcement that TAQNIA, a technology development and investment company owned by the Kingdom of Saudi Arabia, had bought 50 % of shares in Sun & Life, a subsidiary of ACWA Holding.

This movement marked the start of a series of acquisitions of international CSP manufacturers by government and privately owned Saudi conglomerates, as well as some strategic alliances with international research organisations. In fact, at the end of the month, the King Abdullah City for Atomic and Renewable Energy (K.A. CARE) signed an agreement with the German Fraunhofer Institute for Solar Energy to develop research and development activities in the solar realm.

February - Bidders announced for Shagaya CSP project

Shagaya Phase One plant. Image: Kuwait Institute for Scientific Research. 

Developments in the MENA region continued to make headlines. This time it was Kuwait’s turn. The month began with the announcement of six shortlisted EPC consortia for the EPC of the Shagaya Renewable Energy Complex Project. Later in the year, the Kuwait Institute for Scientific Research (KISR) confirmed that Cobra had won the bid despite not submitting the lowest tariff.

However, February will be remembered as the month in which Ivanpah, the gigantic 392 MW tower project in California, was officially launched. The plant grabbed the attention of local and global media throughout the year because of its environmental impact on local bird populations and lower than expected operational results.

In other developments, the Spanish government released the details of the “reasonable return” formula that replaced the Feed in Tariff system. The proposed amount is roughly the equivalent to 7,5 % over the lifetime of a project and is applicable to plants already in operation. Spain’s CSP industry was shocked by the news and also determined to fight back.

March - Sand: CSP energy storage solution of the future?

Operation diagram of Masdar Institute of Science and Technology's Sandstock project. Image: Masdar. 

The third month of the year did not let us down in terms of newsworthiness. In one of the most promising CSP markets, Morocco, two sites were identified for the development of solar projects: Noor Tata and Noor Midelt.

Meanwhile, in South Africa, registration for Window 3.5 of the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) closed with three projects submitted. Recently, on 12 December, the Department of Energy announced the two CSP project selected as preferred bidders: Redstone CSP Project and Kathu CSP.

However, our most read article addressed one of the most pressing issues for the industry: developing more efficient and cost-effective storage means. The article explored two separate research projects conducted by the Masdar Institute and US Solar Holdings, which looked into the potential of sand as a thermal energy storage and heat transfer medium for CSP systems.

April - Italian project shows strong potential for sand-based CSP

Solar Thermoelectric Magaldi demonstration system. Image: Magaldi Industrial Group.

April had its ups and downs. Whereas at the beginning of the month the Indian government announced a reduction of its 2015 CSP target (from 1,080 MW to 100 MW); we learnt that Genesis Solar 1, the 125 MW parabolic trough project in the US, had begun commercial operation.

Nonetheless, other gloomy news was on the way: E.ON and Bilfinger announced plans to leave the Desertec Industrial Initiative. In the MENA region, in Saudi Arabia, the Duba 1 ISCC project was converted from an Independent Power Producer (IPP) tender to an EPC contract.

This time our most read article followed the sand storage suit and explored research carried out by an Italian consortium in the energy storage field. What is interesting about this research is that it ended up being implemented as a 100kWth pilot plant. Could the technology be replicated at a large-scale? Find out the answer here.

May - Dish Stirling for Dubai?

Schlaich bergermann´s Euro Dish technology. Image: schlaich bergermann
und partner. 

May kicked off with news from Latin America. Shortly after receiving favourable environmental permitting from the Chilean government, on 14 May 2014 Abengoa laid the first stone of its Cerro Dominador project in the Atacama Desert.

On the flip side, the Australian government announced intentions to repeal the Australian Renewable Energy Agency Act of 2011 and close ARENA, the body responsible for funding renewable energy projects in the country.

At the end of the month we also learnt that no CSP had been allocated in South Africa’s Window 4 of the REIPPPP.

Our most read article of the month explored the curious case of Cleanergy. The Swedish dish-Stirling manufacturer managed to attract Al-Futtaim Carillion, an EPC in Dubai, to build the first Stirling Engine CSP plant in the entire MENA region.

June - Two innovative technologies to cut the cost of energy storage

Single-tank thermal storage system designed by Terrafore. Image: Terrafore Technologies.

The sixth month of the year was an eventful one. It began with the signing of a partnership agreement between the K.A. CARE and Masdar to promote the advancement of renewable energy across the region.

There were important developments in India too. The first of them was the construction of a CSP research and development centre at the Indian Institute of Technology Jodhpur (IITJ). In late June, the Karnataka State released a request for proposal for 500 MW of solar including both CSP and PV projects.

In financing developments, the African Development Bank (AfDB) approved a US$ 142 million loan for Xina Solar One in South Africa. In Israel, BrightSource’s Ashalim Plot B project achieved financial close on 26 June 2014.

The month ended with the passing of new legislation in Spain introducing more retroactive measures. On 16 June 2014, the Spanish Ministerio de Industria, Energía y Turismo introduced new legislation outlining the compensation parameters for plants generating electricity from renewable energy, cogeneration and waste. This cumulative tariff reduction is believed to lower the income of a CSP plant to around 50 % of levels experienced just two years ago.

Our most read article of the month highlights the findings of Terrafore and NEST AS with regards to the development of two innovative thermal storage systems. The former makes use of phase changing materials, whereas the latter utilizes thermal oil and direct steam technology.

July - Mirror, Mirror

Which CSP technology will win the race? Image: Dreamstime. 

Investment activities set the tone for July. At the beginning of the month we learnt that two projects in South Africa, the !Xun Khwe Solar Farm and the Metsimatala Solar Farm received grants from the US Trade and Development Agency (USTDA).

Over the same period, the European Commission NER 300 program’s second round of funding was announced. A total of nineteen innovative renewable projects were awarded a cumulative sum of EUR 1 billion, two of which were CSP projects. They are the Mazara Solar project, in Italy, which received EUR 40 million and the EOS Green Energy project, in Cyprus, which was awarded with EUR 60,2 million.

On the flip side, there was news from Australia that the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 was passed, which resulted in a cut in ARENA’s funding by AUS$ 439.9 million.

This time our most read article looked into which CSP technologies were favourite in the most promising emerging markets, including South Africa, Morocco, Chile and India.

August - AREVA Exits CSP after net loss in first half 2014

Areva Solar's compact linear Fresnel reflector. Image: Areva. 

The news that the Fresnel technology developer was exiting the CSP market after recording losses of EUR 373 million in its renewable business line, sent shock waves through the industry. The group indicated, however, that it would complete all existing commitments, including large-scale projects in India and Australia. Testament to this was the fact that in early November the Reliance AREVA CSP 1 project got connected to the grid.

In more news from Saudi Arabia, the K.A.CARE signed a deal with the Chinese National Nuclear Corporation (CNNC) to boost nuclear and renewable energy capacity in the Kingdom.

Finally, August drew to a close with news that Schott Solar halted its receiver production in Mitterteich indefinitely.

September - Industrial applications: a new Holy Grail for CSP?

At the Akshardham Temple, in New Delhi, a Clique Solar Arun dish unit is supplying steam for cooking, with an output equivalent to 3,500 meals a day. Image: Wikimedia.org

The ninth month of the year proved to be very active for Egypt. On 20 September 2014, the Government announced the implementation of a new Feed in Tariff (FIT) for renewables. The FIT rates are divided according to production categories, with the larger scale project band relevant to CSP of 20 MW to 50 MW set to receive a rate of US$ 0.1434 per kWh.

An emerging trend was also identified: CSP for industrial applications. Our most widely read article of the month addressed the opportunities for CSP in industrial applications such as enhanced oil recovery, water heating, steam production and refrigeration.

October - Italy: the next CSP hotspot?

The 5 MW Archimede Power Plant, operated by ENEL. Image: ENEL. 

October kicked off with the announcement made by the US Department of Energy (DOE) regarding the allocation of US$ 25 million for R&D projects. The funding supports projects designed to lower the cost of CSP, with a focus on improving efficiency and overcoming temperature limitations.

Over the same period, the Desertec Industrial Initiative (DII) unveiled a revised approach to their renewables activities, after it was confirmed that only three of the original nineteen shareholders remained with the initiative. The DII will be now positioning itself as a consultancy and service agency dedicated to the projects of the three remaining stakeholders: ACWA Power, the China State Grid and RWE.

In Italy, concerns over the viability of the Gonnosfandiga and Flumini Mannu projects, due to substantial delays in the authorization process, manifested in a petition sent to the Italian Prime Minister requesting the substitution of the power of attorney by the Italian Cabinet (Council of Ministries). In light of that, our most widely read article in the month of October addressed the opportunities for CSP in the Italian market.

November - Khi Solar One deaths prompt questions over CSP safety

Khi Solar One construction works in August 2014. Image: Abengoa. 

The penultimate month of the year saw the worst construction accident in the CSP industry to date. On 3 November, one of the cranes used in the construction of the Khi Solar One tower plant near Upington, South Africa, crashed to the ground, killing two workers and injuring seven.

November also saw another chapter of the Palen saga. After a 21 month permitting battle fought by the two developers behind the project, BrightSource Energy and Abengoa, the latter announced its intention to acquire the former’s stake in the project.

This will result in Abengoa becoming the sole owner of the project. The company also announced it will propose a new technical design for the plant, with reduced overall MW capacity and a single molten salt tower.

In India, following the connection of the Reliance AREVA CSP 1 project to the grid on 11 November, the 50 MW Megha parabolic plant became fully operational on 12 November.

December - Novel financing of CSP as publicly owned infrastructure

Parabolic trough. Image: Abengoa. 

News did not stop coming over this period. On 1 December, Abengoa Yield’s Mojave, the 280 MW plant located in California, entered into commercial operation. The parabolic trough plant will supply electricity to Pacific Gas & Electric Company (PG&E), under a 25-year power purchase agreement.

The year ended on a positive note with the announcement made by the South African Department of Energy regarding the financial close of Window 3 and the preferred bidders under Window 3.5 of the REIPPPP.

Finally, our readers were attracted towards a piece published under the title of Novel financing of CSP as publicly owned infrastructure. The article explores the financial model adopted by the developers behind the Ashalim Plot A and B projects as public goods. As the author says: “It is an old idea that gains relevance in the age of climate mitigation”.

Finally, the CSP Today family would like to wish you all a very happy new year! We are looking forward to exciting developments in 2015!