Increasing CSP competitiveness in South Africa

While the South African market has seen a significant increase in competitiveness in the concentrated solar power (CSP) realm, inflexible project parameters may hinder cost reduction.

Aalborg CSP encourages the market to design technical specifications for steam generation systems that foster technology development. With design parameters adequate to traditional power boiler requirements, Aalborg CSP is able to reduce CAPEX of steam systems by up to 35%.

With the Department of Energy’s targets to generate 1,200 MWe from CSP sources by 2030, South Africa shows promising ability to enable substantial price reduction to the whole industry. So far seven CSP projects totaling 600 MW have been awarded under the REIPPPP’s first three rounds.

Even though the CSP-specific Window 3.5 showed a substantial drop in tariffs compared to offers presented in Windows 1 and 2, other competing renewable technologies have shown larger price reductions.

To leverage South Africa’s massive potential for global technology enhancement, it is vital to avoid repetition of project structures from established markets that has the tendency to block value creation in project development.

For key CSP components, such as steam generation systems, it is frequently seen that technical specifications are often standardized data sheets that have been repeatedly applied in bidding processes for many years and often contain design parameters inadequate to traditional power boiler requirements (Header and Coil type equipment based on ASME and EN standards). This can negatively impact technology enhancement in emerging markets like South Africa, as it carries the risk of over-engineering, increased material costs and hindered CSP competitiveness as a result.

Aalborg CSP stresses the importance of a paradigm shift in technical specifications for steam generation systems in order to foster optimised technology development, especially in markets with prosperous conditions for price reduction.

“With technical specifications for steam generation systems, where steam output expectations are prioritised over detailed technology parameters, we are able to reduce CAPEX by up to 35%. This, together with operational benefits of our SGS3 steam generation system that also lower O&M costs, significantly improves levelised cost of energy (LCOE) of the plant“, said Svante Bundgaard, CEO of Aalborg CSP.

Dialogue on LCOE reduction at CSP Today South Africa 2015

Aalborg CSP, a world leader in CSP systems and technologies will be attending the 4th Annual Concentrated Solar Thermal Power Conference & Exhibition, CSP Today South Africa 2015, to be held in Cape Town, South Africa on 14-15 April, 2015.

All visitors are invited to stop by our booth (no. 12) to meet senior representatives from our company as well as to join our dialogue on LCOE reduction. As a company that is dedicated to reduce LCOE of CSP plants, Aalborg CSP will at the exhibition demonstrate the simplicity of optimised technology development for steam generation systems, solar tower receivers and thermal energy storage (TES) technologies.

Press contact:

Jelica Matoricz
International Marketing Manager
Phone: +45 88 16 88 47
E-mail: jem@aalborgcsp.com

About Aalborg CSP A/S

Aalborg CSP A/S is a world leader in concentrated solar power (CSP) systems and technologies. Our globally recognised solutions are based on 25 years of experience with traditional power boilers uniquely adapted to the CSP industry. We design and deliver steam generation systems, molten salt and direct steam tower receivers, industrial solar boilers and integrated energy systems that combine heat and electricity production as well as water desalination. We have supplied CSP plants contributing to more than 330MWe worldwide. The Aalborg CSP engineering design is centred on a value-adding concept to ensure that our technologies excel in performance, increase plant revenue and contribute to a greener future.

Headquartered in Aalborg (Denmark) and with sales & service offices in Spain, US, Kenya, Uganda and Indonesia, Aalborg CSP has realised cost effective thermal energy solutions to a variety of industries worldwide.

For more information visit www.AalborgCSP.com or follow us on Linkedin.