• Tuesday, February 24, 2009 Latest Update: 4:13AM

Greentech Solar

Solar Thermal vs. PV: Which Tech Will Utilities Favor?

Yes, yes, we know utilities are interested in all kinds of solar technologies. But as more solar-thermal developers apply for permits to build mega projects that promise to drive down costs, why wouldn't utilities prefer those guys over the PV folks?

Which technology will win over utilities' hearts: solar thermal or photovoltaics?

It's an issue the American utilities will have to consider more often as a growing number of companies apply for permits to build solar-thermal power plants. A solar thermal power plant typically uses hundreds of mirrors to concentrate the sunlight for boiling some type of liquid for producing steam, which then drives an electricity generator. That scale gives it an advantage in lowering the overall costs of generating power, advocates say.

Solar-thermal energy proponents also like to point out that they don't need to use expensive semiconductor materials to produce electricity, unlike photovoltaic (solar-panel) developers.

"The scale we can implement through solar thermal is much faster [than photovoltaics]. The cost is much less. When you think about how much energy has to be generated, the near future will tilt toward solar thermal," said Charlie Ricker, senior vice president of marketing and business development for BrightSource Energy.

BrightSource, based in Oakland, Calif., has reason to be bullish. It recently signed a huge deal with the Southern California Edison, and it is due to deliver solar power to another large California utility – Pacific Gas and Electric (see BrightSource Inks 1.3GW SoCal Edison Deal and The Rush to Gigawatts in the Desert Explodes).

Whether BrightSource can fulfill its contracts remains to be seen, given the size of the projects. But its ability to win mega deals raises the question: Can photovoltaic companies' ambition to build large-scale power plants to sell power to utilities pay off?

Energy systems composed of solar panels, which convert sunlight into electricity, have been deployed more widely than solar-thermal power plants. Those panels can go on residential and commercial rooftops as well as be mounted on the ground. Photovoltaic technology supporters argue that building solar thermal power plants also requires using construction materials, such as copper, steel and aluminum, whose costs can go up quickly.

"We can build virtually anywhere at any scale and can be deployed rapidly," said Ed Smeloff, senior manager of utility project sales at SunPower Corp., a solar panel maker in San Jose, Calif. "It's a race. We are in a sweet spot right now – we have a technology that works."

SunPower has signed contracts to supply solar power to utilities, though not at the same scale as those under development by BrightSource (see PG&E to Buy 800MW From OptiSolar, SunPower).

The two men gave those brief marketing pitches during a discussion at the UC Berkeley Energy Symposium Monday about which solar technologies will offer cheaper and more reliable sources of electricity for utilities. Utilities across the country have been inking power-purchase agreements with solar power developers or building their own solar power projects in order to meet state mandates for selling renewable power.

Comparing the installation and operating costs between photovoltaic and solar-thermal is a bit of guesswork, however, since utilities and solar companies rarely disclose them. There are more data on the materials and installation costs of solar panel energy systems, given their wider deployment and availability as retail products for the consumer market.

Severin Borenstein, director of the University of California Energy Institute and a business school professor at UC Berkeley, has looked closely on the costs of solar energy. Speaking on the same panel, Borenstein said that a small, residential solar-panel system costs about 40 cents per kilowatt-hour over the system's lifetime while larger solar-panel system would cost 20 cents per kilowatt-hour.

A solar-thermal power plant could cost 18 cents per kilowatt-hour over the power plant's lifetime, a figure that would include the cost of land, Borenstein estimated, noting that there aren't good numbers to make a more definitive calculation. All these cost estimates didn't take into consideration the various state, federal and private subsidies for buying and installing solar energy systems.

In comparison, electricity from coal-fired power plants costs about 5 cents to 6 cents per kilowatt-hour.


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Comments [13]

  • Michael Boyter 02/24/09 5:40 AM

    The old Thermal vs PV argument has been going for sometime. My answer is both will succeed. It’s very obvious that the ultimate winners will the the ones that can produce the most power for the best price right? One would think that is the rule that is stead fast the most important. While it is important there is one more that is perhaps even more important, “Fast Implementation” In a large family of hungry children, he who gets to the table first, usually gets the best piece of meat. Our table is so big with billions of energy consumers world wide that are hungry for Cheap, Reliable, Clean Energy, we all have a chance to survivie. Look at the computer industry, there are the Dell’s, Apple’s, and Toshiba’s, IBM’s and the myriad of others who are much smaller, but all surviving, and some quite well.
    Solar will be the same way. The Question is who will be the Biggest Winners. There are 5 simple rules that will insure your company can be on the top.
    1. Have the “Best Game Changing Disruptive Technology”
    2. Quickly acquire the funding and backing needed to develop it.
    3. Strive for Immediate Implementation into the Marketplace.
    4. Pick your affiliates well, fly with Eagles, Stay away from the Pigeons. A good associate will help both of you to achieve success.
    5. Have the Right Goals, it’s not just about the Dollars. If we don’t all succeed in halting Global Warming/Climate Change, it won’t matter who’s on top. Once Grid Parity is achieved, which will be very shortly, and the technology to achieve it is widely disseminated into the market place, Many well run Solar Companies will thrive and prosper to usher the world into “The New Age of Unlimited, Affordable and Renewable Energy”  The future of our planet depends on it.  All the best Michael

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  • Steve Pluvia 02/24/09 5:52 AM

    Severin Borenstein’s calulations for PV costs are ridiculous; he is either incompetent or a puppet for some other interest.  Severin’s cost basis for PV is detailed in a 2007 report found at www dot ucei dot berkeley dot edu/PDF/csemwp172 dot pdf. 

    Severin’s biggest cost calculation errors include installed costs that are about 2x that of available PV systems, and the failure to calculate benefits of distributed PV installed at the user source rather than miles of power lines away as is the case with solar thermal. 

    One last point to consider: Brightsource’s cost claims are idle prattling; they can’t provide any real costs until they build their first commercial size plant—which they have not done thus far; PV costs on the other hand can be demonstrated based on hundreds of actual installations. 

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  • Nick Panchev 02/24/09 10:42 PM

    RE: “In comparison, electricity from coal-fired power plants costs about 5 cents to 6 cents per kilowatt-hour”, et all issues at this blog.

    WRONG.
    Coal-fired, as of 7/2010 will be at 15 cents per kWh. (Coal mining + transport + sequestration increase + 280%)

    Gas-fired as of 12/2010 will be at 14 cents per kWh (Henry Hub at $16 + permitting GHG offsets at + 65%)

    PV, latest TF, as of 8/2009 36 cents per kWh

    CPV on ground, including BTS as of 12/2009 37 cents per kWh.

    Sterling Dish/Motor, when and if commissioned 34 cent per kWh

    CSP Flat Panel to Power Tower, solar-thermal when commissioned 32 cent per kWh

    CSP Parabolic Through solar-thermal Fresnel, when commissioned 28 cents per kWh

    CSP Parabolic Through solar-thermal Single Collector with single receiver 33 cents per kWh

    CSP Parabolic Through solar-thermal Twin Collector with Twin Receiver, coupled with 17 hours of twin HTF storage (base + peak load in parallel), when commissioned at 10 cents per kWh (each component-solar farm + storage component).
    Notes: There will be plenty of lis pendens for design technology?s infringements. Copycats are already known, as well as Causes of Actions not limited to on multi-ground platforms, such as Constitutional Tort in regards to Private Land Use for Solar Farms, vs Environs.  ESQs are sharpening their pencils and ready.

    Challenge me.
    Respectfully,
    Nick Panchev

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  • Nick Panchev 02/24/09 10:47 PM

    RE: “In comparison, electricity from coal-fired power plants costs about 5 cents to 6 cents per kilowatt-hour”, et all issues at this blog. ///  WRONG. Coal-fired, as of 7/2010 will be at 15 cents per kWh. (Coal mining + transport + sequestration increase + 280%) ///  Gas-fired as of 12/2010 will be at 14 cents per kWh (Henry Hub at $16 + permitting GHG offsets at + 65%) ///  PV, latest TF, as of 8/2009 at 36 cents per kWh ///  CPV on ground, including BTS as of 12/2009 at 37 cents per kWh. ////  Sterling Dish/Motor, when and if commissioned 34 cent per kWh ////  CSP Flat Panel to Power Tower, solar-thermal when commissioned 32 cent per kWh ////  CSP Parabolic Through solar-thermal Fresnel, when commissioned 28 cents per kWh ////  CSP Parabolic Through solar-thermal Single Collector with single receiver 33 cents per kWh ////  CSP Parabolic Through solar-thermal Twin Collector with Twin Receiver, coupled with 17 hours of twin HTF storage (base + peak load in parallel), when commissioned at 10 cents per kWh (each component-solar farm + storage component). ///    Notes: There will be plenty of lis pendens for design technology’s infringements. Copycats are already known, as well as Causes of Actions not limited to on multi-ground platforms, such as Constitutional Tort in regards to Private Land Use for Solar Farms, vs Environs. ESQs are sharpening their pencils and ready.  ////  Challenge me. ////  Respectfully, Nick Panchev

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  • Chris Smith 02/26/09 5:41 AM

    the event is Concentrating Solar Thermal Power June 4-5

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  • Walter Volk 02/27/09 1:10 PM

    Solar Thermal at the power plant, PV on my roof.

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  • Michael Boyter 02/27/09 4:59 PM

    5 to 6 cents per kilowatt-hour does not take into account the grave cost to the environment. I don’t believe that the problems caused by coal are reflected in this estimate.  Coal = Death to the Planet Earth, A slow steady dirty death by Global Warming. Leave the Dead Dinosaurs in the Ground. We are all witnessing the end of the fossil fuel Era. It’s about time. 

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  • Hans Runge 02/27/09 1:04 PM

    The “scale” of a solar power plant is not important, this argument is useless!

    Thermal power plants can store very efficient energy in form of heat and can feed the energy when it is needed. It is correlating with the demand, controllable, and helping the network operators to balance network peaks.

    Big scale PV Plants are only creating another peak in the network (noon time!) and make the existing plants more expensive, because they have to reduce the (optimum) load of the existing plant (e.g. coal, oil, gas) when PV is feeding in. To store electricity in batteries for peak or night time operation is far too expensive. That is why network operators prefer Solar Thermal Power.

    If you think about how an electrical network is working, PV is only a good choice if you install decentralized systems near to the end user. This will help to unload the network. So roof installations are OK, big scale PV Plants are presently very fashionable, but in fact, they are disturbing the operation of the network. The world has severe network overload problems, not power plant problems. There are enough big Power Plants, but the networks getting hot when the air conditioning systems are switched on! The electrical networks need decentralized PV systems to unload the network and peak solar thermal systems for balancing peaks! It?s so simple!

    Pricing: There is not only one power price. Basic 24 hour load can be produced very cheap with nuclear plants or coal plants.  If you have a peak, let say at 10.00 pm, (e.g. when everybody is switching on his air condition system in the bedroom) the network operator has to switch additionally expensive peak power plants. Some of these plants are working only for 2 hours a day. This power cost much more then any 24h production.  And PV is producing energy, when it is not even really needed. It should be cheaper.
    A Solar Thermal Plant with 12 hour storage can collect the whole day energy in a heat storage and can feed the energy into the electrical network any time, if necessary in one hour. It is the most expensive form of electricity you can produce.
    So if you compare PV plants with solar thermal plants, please compare them with equal situation and demand!

    I give you an example:  How much cost one KWh in a 24 hour running time, lifetime 20 years?
    Case (A) PV Plant with electrical Batteries for 24 hours,
    Case (B) Solar Thermal Plant with Heat storage and Turbine.
    I suppose, the KWh of the PV solution cost you in this case more then double! Every Technology has its application, but as long as ?storing electricity? is not getting much cheaper, PV is for decentralized rooftop installation and not the technology for big scale plants.  Have a nice day!

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  • Corban Dallas 02/27/09 8:56 PM

    On the day Gov. Schwarzenegger proclaims a statewide drought emergency for California it should be mentioned that solar thermal power plants need 4 liters of water for cooling per each kWh produced. It is amazing that this fact is hardly taken into account in hardly any related article or discussion. Wonder why. The European / African DESERTEC project solves the problem by using ocean water which at the same time gets desalinated. This does not work in US desert areas.

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  • Dennis Adams 03/1/09 12:21 AM

    HansR,

    You confirm my feeling that once again Spain gets it wrong.  The regulations here effectively limit grid-tied systems to the major utility investors, because there is no netback grid tied systems allowed!  Its either on-grid or off-grid.  Additionally the contorted permit system requires the same permit procedure for a 1 kW grid-tied system as for a 40 MW system, the expense of which makes grid-tying a small generating system economically unattractive.  That no-netback policy, combined with favorable feed in tarrifs, have created the monster plant syndrome that does little of what PV’s ultimate potential would suggest is possible.  Just as you warn, large scale PV combined with a relatively weak grid has not solved any of the transmission problems between large generators and the many small villages and power reliability in rural areas remains weak.  It looks like PV in Spain cannot be utilized to strengthen availability as it should and will actually do more to hurt it.  Spain has taken away the major benefits of PV solar from the majority of consumers that have the most need for it and can use it most effectively in the distributed systems we need to have and delivered them to the political chronies, bankers and large utility operators, even though they are the least likely to be capable of using PV solar benefits to its maximum advantage, except of course to generate shareholder profits.  That is especially aggravating when you realize that the attractive feed-in rates are paid for with tax monies which the general population could otherwise recover by building their own small grid-tied netback systems.  Effectively a naturally distributed resource that should be in everyone’s hands is stolen, concentrated, nothing is improved and the grid gets weaker.  When will Spain ever get it right?

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  • William Woods 03/1/09 9:50 AM

    Corban: “4 liters of water for cooling per each kWh”.

    BrightSource says their power-tower technology operates at high enough temperature to use air rather than water for cooling. “In order to conserve precious desert water, BrightSource uses air-cooling to convert the steam back into water.”
    http://www.brightsourceenergy.com/dpt.htm

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  • Allaince for Rsponsible Energy Policy 05/23/09 3:26 PM

    BrightSource (BS) also claimed the lands needed for their Ivanpah CSP proposal was disturbed land. (NYT Sep 08) This is false. It is prime desert tortoise habitat, pristine healthy carbon sequestering intact ecosystem. Then they stated they could build their mirrors around vegetation. FASLE! The project calls for a complete scrape of the 4,000 acres that will be needed for the 100’s of thousands of mirrors - plus roads in and out of the site.

    Look, this article does not reveal some of the biggest problems with CSP - water, and the dirty little secret that most projects will burn natural gas. NG availability is a big part of the reason for BS siting their Ivanpah proposal where they did. How much NG does home and business owned rooftop PV require to operate?

    And air cooled? That single project will still consume 35 million gallons of water per year at full build-out. And this is only what they are willing to admit - which hardly “holds water” based on their lengthy history of misinformation. Cumulatively we are looking at billions of gallons in So. Cal alone. Unacceptable! 

    Cost analysis of CSP is also very skewed, but lets take BS at their word. Ivanpah will have a 400 MW capacity at full buildout, and cost approx 3 billion. That’s $7.50 per capacity watt, with NG supplement. By comparison, Southern California Edison has a 250 MW rooftop thinfilm PV proposal with a cost estimate of 1 billion - $4 a watt capacity. No ng, no water, no massive land destruction, no steam, no transmission and related line losses, no eminent domain, no SF6 emmission, etc etc. See the difference?

    CSP is the biggest fraud in the new renewable energy generation revolution. These are Big Energy corps hoping to dump as much of their archaic mirror based systems before it is too late and their dirty little secrets are exposed. Dennis is correct. We need feed-in-tariffs, loan programs for home and business owners (not tax dollar driven cash grants like Big Energy gets), and a smart grid to increase efficiency - not land scraping, water wasting, steam spewing, transmission dependent, oldschool CSP. We need to understand that renewable energy is not site dependent like other energy sources. We do not have to accept the use of our tax dollars to fund an energy infrastructure that we will not have any ownership in, and that will actually increase our electricity bills substantially. Distributed PV allows us to become part of this renewable energy revolution. CSP and utility scale PV investors are only trying to keep us out.

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