In a significant development for renewable energy in Peru, a recent feasibility study has unveiled the economic potential of concentrated solar power (CSP) plants in Arequipa. Conducted by Harry Aarón Yapu Maldonado from the Escuela de Ingeniería Mecánica at Universidad Continental, the research highlights the Levelized Cost of Energy (LCOE) for various CSP configurations, revealing promising opportunities for investment in the country’s energy sector.
The study meticulously evaluates five different CSP plant capacities, ranging from 19.9 MWe to 200 MWe, and assesses their competitiveness against local electricity tariffs and the ambitious LCOE target set by the U.S. Department of Energy’s Solar Energy Technologies Office (SETO) for 2030. Notably, the findings indicate that while the projected LCOE for these plants is between 120% and 260% above the SETO target of 5 ¢/kWh, they still present a more economically viable option compared to the local provider SEAL’s tariff of 20 ¢/kWh.
Maldonado emphasizes the strategic importance of this research, stating, “Our study demonstrates that even with the current cost challenges, CSP plants can provide a competitive alternative for energy generation in Peru, especially when compared to traditional sources.” The research also reveals that the LCOE for the analyzed CSP configurations ranges from 12.2 to 18 ¢/kWh, making them attractive for both public and private investment.
A critical component of the LCOE is thermal energy storage (TES), which accounts for 37.5% of total costs. The study suggests that optimizing TES could reduce the overall LCOE by as much as 20%, showcasing an area ripe for innovation and technological advancement. Additionally, the research indicates that CSP plants can achieve capacity factors as high as 65%, significantly outperforming photovoltaic plants, which typically hover around 33%. This capacity factor advantage positions CSP as a robust contender in the renewable energy landscape, particularly for regions like Arequipa, which enjoys ample solar radiation.
The methodology employed in the study involved extensive simulations using the System Advisor Model (SAM) to optimize plant design, reflecting a thorough and data-driven approach to energy analysis. With 152 simulations conducted, the research not only sheds light on the feasibility of CSP plants but also sets the stage for future developments in the field.
As the world increasingly turns to sustainable energy solutions, this research could catalyze a shift in investment strategies within the energy sector. The findings underscore the potential for CSP to play a pivotal role in Peru’s energy transition, aligning with global sustainability goals while providing a reliable and cost-effective energy source.
Published in the ‘Journal of Daylighting,’ this study serves as a critical resource for policymakers and energy investors looking to navigate the evolving landscape of renewable energy in Peru. For more information about the lead author’s work, you can visit the Escuela de Ingeniería Mecánica, Universidad Continental.
