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Solar Trough Organic Rankine Electricity System (STORES) Stage 1: Power Plant Optimization and Economics

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Solar Trough Organic Rankine Electricity System (STORES) Stage 1: Power Plant Optimization and Economics ( solar-trough-organic-rankine-electricity-system-stores-stage )

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together provide power for the grid. A practical surrogate for this is the power delivered by the grid to the customer. This power may be wholesale, which is the power purchased by the Utility for resale to its customers, or retail, which is the power sold by the Utility to its customers. STORES power plants, unlike the large scale SEGS solar thermal plants, are small scale, Distributed Generation power plants that may be placed on the customer’s side of the meter, thus commanding retail electricity pricing that is much more attractive than wholesale pricing. STORES power plants are intended to sell power directly to the user, displacing expensive retail Utility power. This is particularly attractive during peak summer months when electricity prices are at their highest. This strategy dramatically changes the notion of the cost of alternate generation. Pro Forma Results Summary The Pro Forma analysis shows the following: Basis: Size: 5 MW No. of Plants: 3 Capital Cost: $5:50 per kW installed Capacity Factor: 25.6% Loan Amount: 80% debt-to-equity ratio at 5.0%/year interest rate. Energy Credit: 0 Production Tax credits: $0.017/kEh O&M Costs: $0.04/kWh Energy Pricing (Based on SCE’s then TOU rates): Summer Peak: $0.19544/kWh Mid-Peak: 0.10897/kWh Off-Peak: $0.08808/kWh Annual Energy Price Escalation Factor: 5% With the assumptions above, the anticipated rate of return on capital is 4.77%. If there is a $0.015/kWh energy credit, the rate of return is 18.39%. If in addition, there is also an energy tax credit of $0.03/kWh, the rate of return is 22.18%. 52

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