Paddy Padmanathan – Parabolic Trough Concentrated Solar Power ...

Parabolic Trough
Concentrated Solar Power Plants
Reducing Cost by increasing Local Content

ACWA Power in Summary
• Founded in 2004 in the Kingdom of Saudi Arabia
• Developer/Investor + Operator
• Electricity Generation + Desalinated Water Production
Saudi Arabia 11% of Electricity + 40% of Desal Water
Oman 12% of Electricity + 17% of Desal water
Jordan 59% of Jordan’s Electricity
• Dispatching 7500 MW + 2.24 m cum/day water
• + Under Construction 5200MW
• Leading Developer of Middle Eastern Origin
2

Our Involvement in Renewable Energy
• We are building an international utility company that reliably
delivers bulk electricity and desalinated water at the lowest
possible tariff.
• We serve our customers by responding to their needs. Thus we
are fuel neutral; albeit with an internal target of building a portfolio
of renewable energy assets of 1500 MW by the end of 2014.
• Our approach to renewable energy is no different to that for fossil
fuel based production; relentless focus on achieving the lowest
cost at that given time.
• In Solar Power, we are currently developing projects of PV as well
as CSP Technology.
• The two CSP technology projects are:
• South Africa - SolAfrica, 50MW CSP
• Morocco – Ouarzzate, 160MW CSP
3

Overview of a Parabolic Troughs CSP Plant
Solar Field Thermal Storage Conventional Power Block
Or Air
Cooled
Source: CSP Today – CSP Parabolic Trough Report: Costs & Performance
4

Cost Breakdown of a Typical PT CSP Plant
Eng. & Mgmt., 2%
Earth Movement,
4%
Thermal Storage,
16%
Power Block, 28%
Solar Field
(incl. HTF system),
50%
5

Cost Breakdown of PT Solar Field
I&C, 2% Electrical Eq.,
Monitoring
2%
System, 2%
Tubes, 16%
Mirrors, 12%
Steel Structure,
24%
Civil Works, 22%
More than 54% of
the Solar Field cost is
from non-equipment
HTF System,
12%
Collector
Assembly, 8%
6

Ease of Localization
Easiest
Harder
Non-equipment Components of The Solar Field Can
Be Sourced Locally From The Very First Project!
Collector
Assembly
Always done on site, thru a temporary facility
Civil Works
Mostly local labor, equipment and material
that are available in most countries and
certainly in Morocco.
Steel Structures
Other than the steel this requires fabrication
(welding facilities) and suitable galvanization
facilities. Usually the constraint on fully
localizing this scope is existing local capacities
and material availability.
7

Equipments for The Solar Field Can Be Localized
Once a Sufficient Local Pipeline is Established
Equipment
Output of a typical
factory
Investment per
factory
Jobs per factory
Mirrors 200-400 MW p.a. 30 M Euro 300
Tubes 200-400 MW p.a. 40 M Euro 140
HTF
Very High
Source: The World Bank – MENA Assessment of the Local Manufacturing Potential for CSP Projects – Dec 2010
Once equipments are localized more
than 80% of the value of the Solar
Field will be local
8

Local/International Value Split – A typical Case
Local International
Engineering & Project Management 2% 2%
Earth Movement 4% 4%
Solar Field (incl. HTF system) 50% 21% 29%
Mirrors 6% 6%
Tubes 8% 8%
Steel Structure 12% 5% 7%
Monitoring System 1% 1%
HTF System 6% 1% 5%
I&C (Solar Field) 1% 1%
Electrical Equipment (Solar Field) 1% 1%
Civil Works 11% 11%
Collector Assembly 4% 4%
Power Block 28% 9% 19%
Mechanical Equipment 17% 1% 16%
Electrical Equipment 3% 1% 2%
Civil Works 4% 4%
Mechanical Erection 3% 2% 1%
Electrical Erection 1% 1%
Thermal Storage 16% 7% 9%
Total EPC Cost 100% 41% 59%
9

Lets Not Forget O&M
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
27%
30%
43%
With TES
CAPEX OPEX Debt Interest
Over the lifetime of a plant
O&M contributes 30% of the costs
O&M could potentially be up to 90% local.
10

Our experience is that on the first project itself
>40% of the EPC value and
up to 90% of the O&M can be delivered more cost
effectively from local content!
Once a pipeline is established over 65% of the EPC
value can be easily localized.
11

Thank You
12