Modular Trough Power Plant Cycle and Systems Analysis

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Modular Trough Power Plant Cycle and Systems Analysis ( modular-trough-power-plant-cycle-and-systems-analysis )

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major supply link for fuel, and a demand for large quantities of electricity. In addition, the site must have high insolation. ISCCS requires much greater logistics and approvals, resulting in much deliberation and delay. The process of obtaining approvals from renewable energy funding agencies is also much more difficult, because the solar fraction is less than 10%. The robust grid generally also means that the average cost of electricity is low, generally below $0.10 a kWh. STORES power plants, by contrast can be built quickly, and funds can be obtained quickly, because the power plant is 100% solar. Approvals will also be rapid. STORES will displace diesel electricity that is already very expensive. The economic incentive for STORES power plants is thus radically different from the ISCCS. Cost of Capital Solar power plants are capital intensive and have free fuel. The cost of electricity generated is therefore significantly impacted by the cost of capital. The initial evaluation considered a carrying charge for capital of 10% per year. Then subsequent sensitivity calculations examined the impact of lower capital carrying costs or capital buydowns as is prevalent in several areas for PV. Whereas the early Trough Projects found financing to be difficult because of the unknowns associated with such plants, there is now a solid track record of almost 15 years during which the SEGS plants have consistently performed at or above capacity, and the plants today are generally in better shape than when they were constructed. Financial institutions should find comfort in the success and offer very attractive lending rates to such projects. The same solid track record should also bring confidence to the World Bank, the GEF, and other institutions that are looking to create sustainable renewable energy development to developing countries. The simplicity of the STORES power plant, and the established, proven technologies that will be employed, will provide further assurance. The cost of capital will be one of the biggest factors in determining the pace of sustained growth of this important technology. Labor Rates Another large factor in arriving at a cost of electricity is the cost of labor, which depends on the location, the length of plant operation, and alternative employment available. The average fully loaded labor rate at KJC is somewhat above $40 an hour. Bibb estimates that the labor rate for new operators in a new plant would be around $35 an hour. For this study, it was decided to use a labor rate of $40 an hour. In many countries where such plants may be located, labor rates can be as low as $1 an hour, or even lower. Here, too, the approach used was to start with U.S. labor rates and then consider the changes when the power plant is operated in other countries. The strategy for design of STORES plants in the U.S. and in developing countries should consider the implications of labor cost. In general, high capital cost to reduce labor is justified in the U.S., while highly labor-intensive work that keeps capital low is preferred in developing countries. Table 3.3.2 shows the cost and performance indicators in tabular form, similar to those used by SunLab in developing its roadmap for Trough Technology. At first glance, the STORES system does not appear to compare favorably with ISCCS systems. However, when considering that STORES power plants will displace far more expensive electricity and can be built in a small B-23

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