1. CCI Clean Energy Program
Presentation to the Asian Development Bank
15 June, 2009
Introduction to Solar Park Concept and Technologies
Information Session – Pretoria
14 September, 2010
2. Introductions - The Clinton Climate Initiative
• “The Clinton Climate Initiative (CCI) works under the leadership of
government partners, and in collaboration with private sector
sponsors, to develop and implement large-scale projects that directly
reduce greenhouse gas emissions and serve as replicable and
scalable models for others to follow…”
• Three Focus Areas: Cities, Clean Energy, and Forestry
• Within Clean Energy:
• Utility Scale Solar – India, Australia, U.S.A., Morocco and South Africa
• Carbon Capture and Sequestration
• Clean Energy Team includes people withy backgrounds in:
• Project Finance, Private Equity, Strategy Consulting, Power Industry, Electrical
Engineering, Policy Development and Politics
• CCI is completely independent and has no financial ties to any
particular company, technology, or project
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3. CCI – Solar Park Concept
• A Solar Park is a concentrated zone of solar development, pre-permitted to
include power plants developed by private investors
– Convoy Deployment
– Shared Infrastructure
– Streamlined permitting processes, regulatory approvals and boilerplate contracts
• Solar Parks can significantly reduce the cost of electricity from solar power
due to
– (i) economies of scale;
– (ii) the use of less expensive domestically-manufactured components; and
– (iii) removal of regulatory hurdles
• Independent Engineering Analysis in Queensland, Australia:
– 50-60% infrastructure cost-savings scaling from 250 MW to 1,000 MW
– Results in 14-18% reduction in cost of electricity
• “Coordinated Purchasing” of Components may lead to further reductions
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4. CCI Solar Program – South Africa Project Status
• South Africa
– MOU Signed between DOE and CCI to initiate pre-feasibility study (November
2009)
– Pre-feasibility study completed (April 2010)
– DOE developing a Solar Park Authority and procurement strategy
– DTI consulting with local industry on capacity expansion and component
procurement policies
– National Treasury, DBSA, public pension funds and other financial stakeholders
developing programmatic financing package for Solar Park IPPs
– Northern Cape Government, the Municipality of Upington, ESKOM and an
engineering partner (Fluor) on siting analysis and infrastructure planning
– Investor Conference: September/October 2010
– Government likely to set an initial target for “Phase 1” of 1,000 MW by 2015 or
2016
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5. Solar Park Pre-Feasibility Study Conclusions (April 2010)
• Optimal sites for solar found in Northern Cape
– Strong solar radiation (DNI and GHI) on Government owned land
– Water availability (for CSP)
– Transmission capacity expansion planning underway
• Solar can help South Africa meet “baseload” and “peak” power capacity
needs
• If developed in a “Solar Park” context and if incentives were designed to
reduce interest rates for projects, various solar technologies can be
competitive with coal-fired power by 2013
• Once enough solar power is built, solar technologies can be competitive
even at commercial financing rates
• Capacity can be brought online incrementally in short time frame (unlike
nuclear or coal)
• Significant stimulus to local manufacturing and labor demand possible
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6. Solar Technology Summary
• Concentrated Solar Thermal Power (“CSP”) plants concentrate heat
from the sun to power a traditional steam turbine or engine to
generate electricity
– Parabolic Trough
– Central Receiver (Tower)
– Concentrated Linear Fresnel (CLFR)
– Parabolic Dish Engine
– Efficient thermal storage commercially proven; base-load generation
demonstrated
• Photovoltaic (“PV”) systems directly convert sunlight into direct
current (DC) electricity
– mono- and multi-crystalline (silica) PV
– Thin-Film PV
• Concentrated Photovoltaic (“CPV”) systems use refractive lenses to
concentrate sunlight onto a series of highly efficient PV cells
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7. Solar Technologies - CSP
Parabolic Trough Compact Linear Fresnel
Central Receiver (Power Tower) Parabolic Dish w. Engine
CONFIDENTIAL
8. State of CSP Market
Installed Capacity by Technology Installed Capacity by Geography
3.0%
4.0%
• CSP Market Driven by 0.2%
0.7%
subsidies (Spanish 2.3%
46.3%
Feed-in Tariff), which 92.7%
50.7%
are being scaled back
• 953 MW in operation Trough Tower Dish CLFR Hybrid USA Spain Other
today
Capacity in Construction by Technology Capacity in Construction by Geography
• ~1,935 MW in 0.9%
construction and over 0.1% 3.4%
15,000 MW reportedly 7.3% 3.9%
in development
91.7% 92.7%
• Parabolic trough most
utilized technology to Trough Tower Dish Hybrid USA Spain Other
date
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9. CSP – Parabolic Trough
• ~880 MW in operation (in use since the “SEGS” plants of the 1980s)
•Parabolic mirror focuses light on an “evacuated” tube that carries a heat
transfer fluid (typically an oil)
• Max steam inlet temperature of about 370 C
•Storage capable
•Individual collector loop ~150 to 170 meters; single-axis tracking
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16. CSP – Storage System Schematic
COLD SALT
HOT SALT
Source: Worley Parsons
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17. CSP – Trough Plant with Storage in Construction
• 2 tank system for a 50
MW plant with 8 hours
storage
•Each built to contains
30,000 tons of Salt
• 39 meters in diameter
• Over 1,000 MWth
heat capacity
• 9 CSP plants with thermal storage are in operation today (trough and tower),
with up to 8 hours of storage capacity
• 16 more are in construction, including one tower with 12 hours of storage
capacity (Gemasolar)
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18. CSP - Tower
Receiver
Heliostats
• 38 MW in operation today
• Higher temperature conditions than trough (up to 550 C)
• May use molten salt as HTF, making “direct” storage possible
• Tower height varies but can be up to ~220 meters
• ~ 5,000 to 20,000 heliostats depending upon capacity and use of storage
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19. CSP - Tower
• Vertical banks of tubes with top and
bottom headers used to carry working fluid
(can be molten salt or water)
• High temperature alloy required
• Slight curve in heliostats optimal
depending upon tower size
• ~2 to 200 m2 surface area per heliostat
•Dual-axis tracking
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20. CSP – Tower with Molten Salt Loop
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21. CSP - CLFR
• 7 MW currently in operation
• Single-axis tracking, flat
mirror facets focus heat onto
single receiver
• Lower levels of solar
concentration than other CSP
technologies, but lower
CAPEX
• Oil or water as heat transfer
fluid
• Inlet temperature ~260 C
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22. CSP – Dish Engine
• ~2 MW currently in commercial
operation
• Individual “dish” capacity of 25 to 80
kW
• Flat mirror facets assembled into
parabolic dish shape; dual-axis tracking
• Mirrors focus light onto a Stirling
Engine to directly generate electricity
(thermal storage not possible)
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24. State of PV Market – Capacity Grown and Geography
• New installed capacity in 2009 totaled over 6,000 MW
• Can be used for utility-scale or small, off-grid projects
• As PV directly produces electricity, large-scale storage not economic
• Module prices have dropped ~50% over the past two years
•Geographical distribution of projects driven by subsidies (German and Spanish
Feed-in Tariffs), which have also seen recent reductions
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25. State of PV Market – Decreasing Prices
• PV price decreases driven by
growing expansion of silicon
processing capacity (now in over-
supply) and growing thin-film
manufacturing capacity
Silica, ingots and wafers, cells, modules
Solar Grade Silicon, $/kg
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28. Solar Technologies – CPV; State of Market
CPV Module and Tracker CPV Module Erection
• Highly efficient solar cells with refractive lenses form series of modules that are
mounted on a dual-axis tracker
•0
• Individual module capacity on the order of a few hundred kW
• A novel technology with roughly 15 MW of installed capacity
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29. Solar Technologies – CPV
• CPV modules use “multi-junction” solar
cells to capture a broader range of light
radiation
• Refractive lenses to concentrate
radiation onto the cells
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30. Summary of Technology Components
CSP Si PV Thin-Film PV CPV
Raw Silicon Semi-Cond. Material - CdTe, CIGS Gallium Arsenide
Ingots and Wafers Glass Multi-Junc. Cells
Encapsulants (e.g. EVA) Frames Glass
Backsheets (e.g. TPT) Modules Lenses
Ribbon (tin, copper) Modules Modules
Up-stream Silicon Sealants
Glass
Cells
Frames
Modules
Mirrors Steel /Alum. Steel /Alum. Steel /Alum.
Tubes/Receivers Inverters Inverters Inverters
Heat Transfer Fluids Tracking Sys. Tracking Sys. Tracking Sys.
Steel - load bearing; mirror frame Cabling Cabling Cabling
Solar Field Concrete Transformers Transformers Transformers
Cabling
Pumps and Valves
Fabricated Piping
Controls and Sensors
Steam Turbine/Generator Set
Heat Exchangers
Pumps and Valves
Power Block Fabricated Piping
Transformers
Storage Medium (salts)
Heat Storage Tanks
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31. Indicative Component Requirements for Solar Parks – Steel
• A100 MW CSP Plant can require anywhere between 9,000 and 26,000 tons
of steel
– The wide variance is meant to account for CSP plants with and without thermal
storage.
– Typically mild carbon, hot-rolled and flat-plate steel
– Common specifications include ASTM A992, ASTM A36, S 275 JR, S 355 JR, H-
340, ASTM A 16 Gr. 75
CSP Steel Tonnes
MW Min Max Average
100 9,000 26,000 17,500
500 45,000 130,000 87,500
1000 90,000 260,000 175,000
3000 270,000 780,000 525,000
5000 450,000 1,300,000 875,000
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32. Indicative Component Requirements for Solar Parks – Glass
• A100 MW CSP Plant can require between about 445,000 and 1.2 million
square meters of glass for its mirrors
• Range again attributable to thermal storage
• Parabolic trough plants require curved mirrors between 2 and 3 square meters
apiece, while other technologies require flat mirrors between 1 and 7 square
meters apiece
• Number of mirrors per heliostat or mirror-line varies widely by technology
• The glass is usually 3-4 mm thick and must be low-iron tempered glass with 92-
93% reflectivity
• Some technologies are experimenting with reflective films rather than glass
2 2
Parabolic Volume (m ) Tower (Flat) Volume (m )
MW Min Max Average MW Min Max Average
100 445,100 1,188,000 816,550 100 490,600 1,870,600 1,180,600
500 4,450,900 11,880,300 8,165,600 500 4,905,900 18,705,900 11,805,900
1000 8,901,800 23,760,700 16,331,250 1000 9,811,800 37,411,800 23,611,800
3000 13,352,700 35,641,000 24,496,850 3000 14,717,700 56,117,600 35,417,650
5000 22,255,000 59,400,000 40,827,500 5000 24,530,000 93,530,000 59,030,000
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33. Indicative Component Requirements – PV Manufacturing Inputs
• The table below offers indicative figures of materials requirements for a
module assembly unit
• The levels shown represent general averages based on multiple data points
• International suppliers often suggest an annual yield (or demand) of ~30
MW/year is required to justify investment in local module assembly
• Economies of scale for up-stream cell manufacturing are achieved at much
larger yields (perhaps 1 GW/year)
2
Capacity Glass (tons) Alum (tons) Encapsulant (m2) Backsheets (m ) Ribbon (units) Sealant (tons)
30 1,710 48 427,500 213,750 1,900 29
100 5,700 158 1,425,000 712,500 6,333 95
500 28,500 792 7,125,000 3,562,500 31,667 475
1000 57,000 1,583 14,250,000 7,125,000 63,333 950
2500 142,500 3,958 35,625,000 17,812,500 158,333 2,375
5000 285,000 7,917 71,250,000 35,625,000 316,667 4,750
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34. Job Creation Potential
• While figures vary based on technology mix and pace of build, CCI’s
base case assumes an average of ~12,000 construction jobs could
be created over 8 years during construction of a 5,000 MW Park
• 3,000 ongoing O&M jobs upon completion of 5,000 MW
• These estimates do not include indirect jobs that would be created in
the manufacturing and services sector as a result of the project
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35. Job Creation Potential
• Construction labor force could be re-employed by other Solar Parks upon
completion of the first
Annual Construction Jobs Created 2012 2013 2014 2015 2016 2017 2018 2019 2020 Average
PV/CPV Capacity Added by EOY (MW) 200 200 200 200 200 200 200 200 200
CSP Capacity Added by EOY (MW) - 400 400 400 400 400 400 400 400
PV/CPV Construction Jobs 1,776 1,776 1,776 1,776 1,776 1,776 1,776 1,776 1,776 1,776
CSP Construction Jobs 5,012 10,024 10,024 10,024 10,024 10,024 10,024 10,024 5,012 8,910
Park Transmission Jobs 430 430 430 430 430 430 430 430 143 398
Park Infrastructure Jobs 550 - - - - - - - - 61
Regional Transmission Upgrade Jobs 1,122 689 1,411 2,006 1,376 1,376 1,108 1,108 - 1,133
Total Average Direct Jobs 12,278
O&M Jobs Created 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Cumulative
PV/CPV O&M Jobs - New - 146 146 146 146 146 146 146 146 146
CSP O&M Jobs - New - - 212 212 212 212 212 212 212 212
PV/CPV O&M Jobs - Cumulative - 146 292 438 584 730 876 1,022 1,168 1,314 1,314
CSP O&M - Cumulative - - 212 424 636 848 1,060 1,272 1,484 1,696 1,696
Total O&M Jobs Created 3,010
*Scenario above based on solar company estimates for plants built in the U.S. and E.U., adjusted for local labor productivity (2.10 : 1.00 versus U.S.
Reference); infrastructure related job estimates based on CCI modeling of inputs from ESKOM and Trans-Africa Projects.
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36. Next Steps
• DOE and DTI would like to initiate a dialog with local industry in a
dialog about the potential opportunities presented by the
establishment of a Solar Park in the Northern Cape
• DOE and DTI hope to learn how local industry might respond to the
demand for products and services
• DOE and DTI would like to invite local industry representatives to
attend an upcoming conference introducing the Solar Park to
international developers, investors and policymakers
• This conference could include some forum designed to promote
networking and discussion between international developers,
component manufacturers, EPCs and local industry
36 CONFIDENTIAL
