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experience gained from these early projects is likely to be beneficial to future deployment plans and to the further development of the supply chains. If this does turn out to be the case, the global industry may benefit from this, as Chinese suppliers and EPC contractors will put increasing downward pressure on cost structures in projects around the world. TOTAL INSTALLED COSTS In the early years of CSP plant development, adding thermal energy storage was often uneconomic and its use was limited. Since 2015, hardly any projects have been built or planned without thermal energy storage, as adding thermal energy storage is now a cost-effective way to raise capacity factors and contributes to a lower LCOE and greater flexibility in dispatch over the day. The average thermal storage capacity for PTC plants in the IRENA Renewable Cost Database increased from 3.3 hours between 2010 and 2014 to 5.7 hours between 2015 and 2019 (an increase of almost three-quarters). For STs, that value increases from 5 hours in the 2010-2014 period to 7.7 hours in the 2015-2019 period (a 54% increase). Total installed costs for CSP plants have fallen between 2010 and 2019. This has been true even as the projects developed have increased the size of their thermal energy storage systems. During 2018 and 2019, the installed costs of CSP plants with storage were at par or lower – sometimes dramatically so – than the capital costs of plants without storage commissioned in the 2010-2014 period. The projects commissioned in 2018 and 2019 contained in the IRENA Renewable Cost Database had an average of 7.2 hours of storage. This is 2.2 times larger than the average value for projects commissioned between 2010 and 2014, and is expected to continue to grow. For instance, the average storage level for projects in the ‘under construction’ or ‘under development’ categories of the SolarPACES database is 11.7 hours (63% higher than those of 2018-2019) for projects expected to be operational in 2020 and 2021 (SolarPACES, 2020). The capital costs for CSP for projects for which cost data is available in the IRENA Renewable Cost Database and that were commissioned in 2019 ranged between USD 3 704/kW and USD 8 645/kW (Figure 8.2). Figure 8.2 CSP total installed costs by project size, collector type and amount of storage, 2010-2019 CONCENTRATING SOLAR POWER 14 000 12 000 10 000 8 000 6000 4 000 2 000 0 Linear Fresnel Parabolic trough Solar tower Storage (hours) no storage 0 to 4 h 4 to 8 h 8+ h Capacity (MW) 1 100 200 ≥ 300 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: IRENA Renewable Cost Database. Note: Only projects in the database with information available for all the variables displayed are shown. Data can therefore diverge from the global dataset. 123 2019 USD/kWPDF Image | RENEWABLE POWER GENERATION COSTS IN 2019
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