CST after COP-21 A global perspective. Cédric Philibert Renewable Energy Division International Energy Agency

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Transcription:

CST after COP-21 A global perspective Cédric Philibert Renewable Energy Division International Energy Agency ASTRI Workshop, Melbourne, 2 May 2016

COP21 a historic milestone Universal agreement on: GHG emissions peak asap Stay below 2 C temperature increase, get close to 1.5 Reach carbon-neutrality in second half of this century Renewables around COP21 Renewables explicitly referred to in around 100 pledges Record renewable capacity additions in 2014 and 2015 Lowest-ever announced wind and solar prices Downturn in prices for all fossil fuels Oil & gas set to face a second year of falling upstream investment in 2016 Coal prices remain at rock-bottom as demand slows in China

GW Renewables set to dominate additions in power systems World net additions to power capacity 1 600 1 400 1 200 1 000 800 600 400 200 0 2008-2014 2014-20 Fossil fuels Nuclear Hydropower Non-hydro renewables Analysis from the IEA Medium-Term Renewable Energy Market Report 2015 and the New Policies Scenario of the World Energy Outlook 2015. The share of renewables in net additions to power capacity continues to rise with non-hydro sources reaching nearly half of the total

2010 = 100 Innovation and scale-up are driving costs down 120 Indexed generation costs 100 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Onshore wind Solar PV - residential Solar PV - utility scale High levels of incentives are no longer necessary for solar PV and onshore wind, but their economic attractiveness still depends on regulatory framework and market design

Wind and Solar PV prices declining sharply Recent announced long-term contract prices for new renewable power to be commissioned over 2016-2019 Onshore wind Utility-scale solar PV Morocco USD 30-35/MWh Germany USD 67-100/MWh Germany USD 87 /MWh United States USD 47/MWh Canada USD 66/MWh Turkey USD 73/MWh United States USD 65-70/MWh China USD 80 91/MWh Brazil USD 81/MWh India USD 67-94/MWh Peru USD 38/MWh Mexico USD 35+5/MWh Jordan USD 61-77/MWh Peru USD 49/MWh United Arab Emirates USD 58/MWh Brazil USD 49/MWh Chile USD 65-68/MWh Uruguay USD 90/MWh South Africa USD 51/MWh South Africa USD 65/MWh Egypt USD 41-50/MWh Australia USD 69/MWh This map is without prejudice to the status or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area Note: Values reported in nominal USD includes preferred bidders, PPAs or FITs. US values are calculated excluding tax credits. Delivery date and costs may be different than those reported at the time of the auction. Best results occur where price competition, long-term contracts and good resource availability are combined

Gt Greater efforts are still needed to reach a 2 C pathway 40 36 32 28 Trend post-cop 21 17.9 Gt Energy efficiency Fuel & technology switching in end-uses Renewables Nuclear 24 20 2 C Scenario CCS Other 16 2010 2015 2020 2025 2030 2035 2040 Source: World Energy Outlook 2015 In a 2 C Scenario, energy efficiency and renewables, notably solar and wind, deliver the bulk of GHG emission reductions OECD/IEA 2015

Global power mix needs a shift reversal Source: Energy Technology Perspectives 2014 2011 6DS 2DS hi-ren Generation today: Generation 2DS 2050: Fossil fuels: 68% Renewables: 65-79% Renewables: 20% Fossil fuels: 20-12%

Where CST fits in the picture 1. Generate dispatchable electricity 2. Provide high-temperature industrial process heat 3. Manufacture energy vectors as «solar fuels»

Solar Electricity PV takes all light PV almost everywhere Scalable from kw to GW Variable and mid-day Peak & mid-peak Smart grids STE takes direct light STE only in semi-arid countries Mostly for utilities Firm, dispatchable Peak to base-load }{ backup storage HVDC lines for transport Firm & flexible CSP capacities can help integrate more PV

Integrating large shares of PV is challenging California: - expected evolution of the net load of a typical spring day Flexibility of other power system components Grids Generation Source: California ISO, 2014 - expected evolution of the value of PV and CST Storage Demand Side Source: Jorgenson, Denholm & Mehos, 2014

Complementary roles of PV and STE Thanks to thermal storage, STE is generated on demand when the sun sets while demand often peaks and value of electricity increases OECD/IEA 2014

PV ahead, CST lags behind PV: Massive cost reductions Also for distributed generation STE: Flexible generation not yet fully valued Progress in the US Pipeline moved to Chile, China, Morocco, South Africa Old Roadmap Milestones for 2020 (GW) To be reached PV 200 5 years ahead STE 140 > 7 years later OECD/IEA 2014

Global generation in TWh Share of total electricity generation New roadmap vision for solar electricity 12 000 30% 10 000 25% 8 000 20% 6 000 15% 4 000 10% 2 000 5% 0 2015 2020 2025 2030 2035 2040 2045 2050 Solar PV Solar CSP Share of PV Share of PV+STE 0% Together, PV and STE could become the largest source of electricity worldwide before 2050 OECD/IEA 2014

Future possible interconnections Source: Adapted from STE Roadmap 2010

Global Energy Interconnection IEA Roadmap GEI capacity (TW) generation (PWh) capacity (TW) generation (PWh) PV 4.7 6.3 7.7 12.7 Solar-thermal power 1.0 4.4 3.5 13.3 wind power 2.7 7.3 11.8 22.4

Power from CST compares with Distributed PV + battery (e.g. Germany) Utility-scale PV + pumped-hydro storage (e.g. Chile) PV + wind (e.g. South Africa)

or PV + CST! Tomorrow? (e.g. ARPA-E s Focus programme, USA) Lesedi, Jasper and Redstone Power Projects. Source: SolarReserve Today (almost) (e.g. South Africa)

Costs matter CSP investment costs (IEA, 2014) CSP LCOE (IRENA, forthcoming) CSP LCOE (IEA, 2014) USD/MWh 2015 2020 2025 2030 2035 2040 2045 2050 W/o storage W. 6-hour storage Min 158 126 105 93 88 83 80 76 Max 263 209 175 156 147 139 133 127 Min 146 116 97 86 82 77 74 71 Max 172 137 115 102 96 91 87 83

value matters as much! Ten years ago, LCOE of CST power was half that of PV Now, the reverse holds true CST power will not beat PV on costs, but compares with PV + storage Time-of-delivery payments reflect the true value of storage CST Power was born in the 1980s in California thanks to time-of-delivery energy and capacity payments CST is being developed in South Africa thanks to a x2.7 multiplier of Base Price during 5 hours a day

2050 Low-Carbon Economy Roadmap 80% GHG decarbonisation in 2050 (cf global 2 C objective) 100% 100% 80% Power Sector Current policy 80% 60% Residential & Tertiary 60% 40% Industry 40% Transport 20% 20% Non CO 2 Agriculture 0% Non CO 2 Other Sectors 0% 1990 2000 2010 2020 2030 Source: European Commission 2050 Roadmap, 2011 2040 2050 20

Industry next to power, mostly heat Global CO2 emissions Germany (final energy consumption)

Electric heat technologies Least efficient: resistances (Joule) Could play a transitory role in parallel with existing fossil fuel boilers Industrial heat pumps Commercially available to 100 C output Reaching 140 C output would double potential Induction heating and smelting Microwaves (food, rubber, plastics) Foucaut currents, electric ovens, electric arcs, plasma torches, etc Photo Credit : SAIREM

Solar heat for industries Solar air drying of coffee beans (Columbia) Solar water heaters in a service area (Austria) Source: AEE INTEC. Experimental mid-size industrial solar oven (France) Source: SolarWall. Deepak Gadhia Cooking with Scheffler dishes (India)

Troughs for food industry 6 installations from Inventive Power in Mexico: Buenavista Greenhouse La Doñita Dairy Lácteos Covbars Dairy Nutrición Marina (Food Pellets) Matatlan Dairy El Indio Dairy

Solar ovens in the Pyrenees Source: Four Solaire Développement.

Oil men turn to solar to save gas Mirrah, Oman, 2017: 1 GWth for EOR Glasspoint technology

Solar fuels From hydrocarbon or water Source: PSI/ETH-Zürich. H 2 can first be blended with natural gas Can be converted into various energy carriers: methane, methanol, DME, ammonia Other options based on redox cycles, flow batteries OECD/IEA, 2011

Others ways to combine PV and CST- for electrochemical processes Electrolysis at high temperature requires significantly less power combining CST heat and renewable power makes full sense

Various CST paths to carbon-free ammonia, steel, cement Solar thermal electro pr Source: Licht et al. Including process CO2 emissions Also to support CO2 capture from coal plants (ARENA), biomass plants or perhaps from air

Interconnections reconsidered

In sum CST is being challenged by PV but will have an important role to play in power systems thanks to built-in storage CST heat, alone or with RE power, can substitute fossil fuel use in many industries, avoiding energy (and possibly process) CO2 emissions manufacture CO2-free hydrogen and energy vectors CST will be needed to reach carbon-neutrality in second half of the century and stay below 2 C temperature change

And finally Australia needs CST The world needs CST CST needs Australia The world needs CST in Australia