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Nexant Parabolic Trough Solar Power Plant Systems Analysis 2005

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Nexant Parabolic Trough Solar Power Plant Systems Analysis 2005 ( nexant-parabolic-trough-solar-power-plant-systems-analysis-2 )

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Task 3 Multiple Plants at a Common Site to commit future funds if the utility believes both the first and the subsequent projects will eventually be incorporated in the utility’s rate base. As a result, a utility may be more willing than a private source to commit to the necessary resources in the first project which will yield cost reductions on the subsequent plants. These resources could include the pre-investments noted above, and may also involve vendor purchase orders for two turbine-generators, two cooling towers, and so on. For the purposes of the study, a net reduction in the capital cost for the second plant was estimated to be two- thirds of the 13 percent savings cited above, or 9 percent. A savings of 9 percent was also consistent with the cost projections developed for the two 50 MWe AndaSol projects, in which the second plant was estimated to be 10 percent less expensive than the first. The savings were derived from the following: vendor purchase orders which included an option for the purchase of identical components on the second project; construction of a switchyard with sufficient capacity for up to 5 projects; incorporating an intentional lag between the two construction schedules which allowed the craft labor to finish the activities on the first project, and then move to the second; and reusing the engineering and procurement documents from the first project on the second. 4.3 Capital Cost of Four 250 MWe Plants with Separated Power Blocks As shown in Table 1, the overnight construction cost for a 250 MWe plant was estimated to be $878.6 million. Of this total, $831.4 million was the total field cost for installed material and labor, and $47.2 million were the indirect costs for engineering, procurement, construction management, startup, checkout, and contractor fee. For the purposes of the study, the total field cost for installed material and labor on the second plant was estimated to be 9 percent less than the first, or $756.6 million. However, no further reductions in the total field cost were credited for the third and the fourth projects, based on the following: • No data were identified for three or more identical plants at a common site to substantiate further cost reductions. • Most, if not all, of the potential cost reductions due to pre-investment or multiple purchase orders were likely have been achieved with the second project. • The third and fourth plants in a series will start construction at least 2, and perhaps as much as 4 years, after the first. As such, the benefits to be achieved in 2 to 4 years from an investment today may be more than offset by potential changes in regulatory requirements, transmission line access, interest charges on committed funds, and changes in equipment designs and pricing. The last item is of particular relevance for solar facilities, as design improvements and cost reductions are likely to take place in the trough structure, the heat collection elements, the mirrors, and the heat transport fluid. For example, committing a future project to an indirect thermal storage system when the industry may, in the long run, be switching to an inorganic heat transport fluid could be counterproductive. - 16 -

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