DME S-006 -2010 Lecture 00 Sustainable CSP

DME S-006 -2010 – Lecture 00 Sustainable CSP desalination in the Mediterranean Countries: the main results of the MED-CSD project Seawater Desalination and the Environment September 14 th - 15 th, 2010 New Exhibition Center, Munich 1

DME S-006 -2010 – Lecture 00 Seawater Desalination Overview • • Electricity and water supply scenarios in MENA Why CSP and desalination? CSP and desalination technology overview Selected plant configurations Technical performance model Financial model Conclusions 00 -2 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Water supply scenario in MENA Potential Water deficit (Source: AQUA-CSP) It is essential to start a paradigm change now! Massimo Moser DLR 00 -3

DME S-006 -2010 – Lecture 00 Seawater Desalination Water deficit scenario by country Country Water deficit [Bm 3/y] Egypt 51. 35 Libya 5. 82 Syria 5. 22 Jordan 0. 66 Israel 0. 39 (Source: OME) Dramatic water deficit in Egypt (ca. 1 Nile River!) Massimo Moser DLR 00 -4

DME S-006 -2010 – Lecture 00 Seawater Desalination Gross electricity demand by country Country (Source: OME) Gross electricity demand [TWh/y] Turkey Egypt 586. 55 Algeria 304. 69 Morocco 150. 80 Syria Massimo Moser DLR 660. 60 134. 17 00 -5

DME S-006 -2010 – Lecture 00 Seawater Desalination Looking for sustainable solutions… why CSP? • High solar irradiation is the cause of water scarcity Idea: use solar radiation to produce sustainable electricity and water • Option of thermal energy storage (TES) high operation flexibility, dispatchability • Hybrid operation, no “shadow”-power-plant required Security of supply • Waste heat from the turbine and produced electricity can be used to drive thermal or mechanical desalination 00 -6 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Overview on CSP technologies Parabolic trough (Solar Millennium) Linear Fresnel (Novatec) Solar Tower (Abengoa) Massimo Moser DLR Dish (DLR) 00 -7

DME S-006 -2010 – Lecture 00 Seawater Desalination Comparison of CSP technologies (Source: DLR) 00 -8 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Options for heat storage Molten Salt (ACS Cobra) Steam accumulator (Abengoa Solar) PCM (DLR) Massimo Moser DLR Concrete (Züblin, DLR) Water Tank (Kuckelhorn) 00 -9

DME S-006 -2010 – Lecture 00 Seawater Desalination Comparison of heat storage technologies (Source: DLR) 00 -10 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Overview on desalination technologies (INVEN) Multi Effect Distillation (Entropie) Massimo Moser DLR 00 -11 Reverse Osmosis (DME)

DME S-006 -2010 – Lecture 00 Seawater Desalination CSP-MED configuration Solar field Power block Thermal Energy storage Cooling and Desalination unit 00 -12 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination CSP-RO configuration Desalination unit Cooling unit 00 -13 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Preliminary considerations (Source: DLR) 00 -14 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Site selection Source: DLR, kernenergien 10 locations, 4 configurations, 2 DNI models 80 cases! 00 -15 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Technical model • Site and configuration definition, input data collection • Yearly simulation with INSEL v 8 and result analysis Site coordinates Plant configuration Direct normal irradiation Ambient temperature Wind velocity Output file Water demand Electricity demand Massimo Moser DLR 00 -16

DME S-006 -2010 – Lecture 00 Seawater Desalination Summer/winter comparison: • In summer the day is longer and the storage can be charged by day, allowing bridging the night almost without fossil fuel consumption • In winter the day is shorter and the low sun elevation causes large efficiency losses. The storage can not be completely charged 00 -17 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Main results of the technical model • Hybrid rate varies between ca 25% and 50% in function of available solar resources and in minor measure of plant configuration • Seawater salinity affects the internal electrical consumption of the RO influence on the size of solar field and turbine • The cooling system in the RO case is a dry-cooling; the design ambient temperature plays a very important role • The MED has a quite stable behaviour, due to the presence of the hot water tank 00 -18 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Financial models 2 financing options (Source: EIB) Corporate (or promoter) finance Project finance • Financing partners provide • The project is realized and funding to the promoter (a financed via a standalone company, a consortium of project company companies or an institution) • The equity cash flows are dis • The cash flows are counted with the required rate discounted with the WACC of return on equity (private investor's point of view) 00 -19 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Main results of the financial model Source: EDF, kernenergien 00 -20 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Main results of the financial model • Assuming the private investor's point of view (the “realistic” point of view), none of the analysed configuration is economically feasible (NPV<0) Adequate feed-in tariff or a grant is necessary • • In Italy, where existing Feed-in-Tariffs are assumed in the model, just a small grant is required Private investors require high revenues in risky countries like Palestine and Egypt (up to 20 %) This is an obstacle for the project profitability also in locations with an excellent solar irradiation like Safaga (EGY 2). • The sensitivity analysis shows that TPC and amount of produced electricity leads to a higher impact on the NPV 00 -21 than a variation of fuel prices or O&M costs Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Main results of the financial model - 2 • With the given assumptions, the Linear Fresnel Reflector is the more profitable technology. However, the LFR is not as mature as the parabolic trough (2 MW Linear Fresnel installed, 30 MW under construction). • The RO presents lower investment cost in comparison to the MED (however this difference is softened by the membrane replacement cost of the RO) and in the selected locations the LFR-RO configuration is the cheapest option 00 -22 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Outlook • Water management and water saving measures should be taken as soon as possible. However, new water resources have to be tapped in order to meet the increasing water demand in the MENA countries • Concentrating solar multi-purpose plants could generate solar electricity for domestic use and export, drinking water from desalination and shade for agriculture and other human activities 00 -23 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Outlook - 2 • CSP and desalination are proven technologies, the financial feasibility depends on available resources and economic boundary conditions. Tailor-made feed-in tariffs can open the market for the development of CSP-DES plants, thus producing scale effects and driving the investment cost down • First pilot and demonstration plants will show the attractiveness of this sustainable solution 00 -24 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Thank you! 00 -25 Massimo Moser DLR

DME S-006 -2010 – Lecture 00 Seawater Desalination Nicht-exklusives Copyright DME erwirbt mit der Annahme Ihres Fachbeitrags auch das nichtexklusive Copyright, insbesondere bezüglich der Veröffentlichung in den Seminarunterlagen. Die Veröffentlichung Ihres Fachbeitrags, auch auszugsweise, an anderer Stelle ist Ihnen freigestellt, wobei wir erwarten, dass Sie darauf hinweisen, dass es sich um einen Fachbeitrag des DME Seminars S-006 -2010 in München handelt. Non-exclusive Copyright By reveiving your presentation DME aquires the non-exclusive copyright, especially in view of publishing it in the seminar documentation. You are free in publishing your presentation – even part of it – elsewhere, but we expect that you mention that this presentation has been held on the DME Seminar S-006 -2010 in Munic. 00 -26 Massimo Moser DLR