Renewable Energy in Industrial Applications – an ... - Unido

SOLAR THERMAL SYSTEMS
sectors. This is particularly important for
developing and least developed countries, where
the development and modernisation of the food
industry has a critical role to play in terms of
food security. Solar thermal systems can help
developing countries to stabilise food prices by
reducing their connection to the volatile prices of
oil and other energy commodities.
Unlike biomass, where resource availability may
limit the potential and raise sustainability
concerns, solar has an almost unlimited resource
potential. Estimates of the theoretical potential of
different configuration and radiation levels shown
in Table 4 8 .
This shows that, where good solar radiation is
available, solar thermal technologies for industrial
process heat are very close to break even. The
Table shows average figures. In many specific
cases where the cost of the reference energy unit
is higher or where locally manufactured solar
thermal systems are cheaper, solar thermal
technologies are already cost effective without
any need for subsidies. In areas with lower solar
radiation, such as in central Europe, solar thermal
Table 4
Investment and generation costs for solar thermal for industrial process heat - 2007 9
General Cost
US$/MWh
Investment Cost
thousands US$/MW
Case 1: 2000kWh/m 2 /year current 57 450
storage break even 50 350
Case 2: 1200kWh/m 2 /year current 94 450
daily storage break even 50 238
Case 3: 1200kWh/m 2 year current 90 765
seasonal storage break even 60 508
Case 4: 2000 kWh/m 2 /year current 137 1,450
including cooling break even 80 847
solar energy are in the range of millions of EJ/yr
(e.g. 3.9 million EJ/yr). This is hundreds of
thousands of times larger than the current world
total primary energy supply of 503 EJ in 2007
(IEA statistics). The quality of the resource, i.e.
the insolation rate, however, depends on latitude
and climatological conditions.
An analysis of several sources suggests the
current generation and investment costs for
technologies need substantial cost reductions to
become competitive. In some specific markets,
taxes on fossil fuels or subsidies for renewable
energy make solar thermal competitive already
today even in areas of low solar radiation.
Although solar cooling is still in an early
demonstration stage, in countries with stable
solar radiation and unstable, expensive electricity,
solar cooling may become a viable alternative to
electric chillers in the next ten years.
8
The most comprehensive and recent survey is the IEA's Solar Heating and Cooling brochure (2009) at
http://www.iea.org/papers/2009/Solar_heating_cooling.pdf
9
Assuming, based on IEA data on capacity and production, a world average load factor for 2007 of 605 full load hours/yr, a 7%
interest rate, and a capital recovery factor of 9%. O&M costs, in USD/MWh/year, are 2.5% of the ratio between investment costs
and full load hours.
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