The report attempts to analyze the essence of using CSP technology as an alternative source of energy given that it does not pollute the environment. In this aspect, the report explores the cost and benefits of the entire project.
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CSP is one of the methods that need to be employed since it could meet up to 7% of the world’s power need by 2030. Another goal was to check on the most economical technology that will be affordable to all people easily. The recent technology, which that is able to collect rays from the sun and change it to electricity, is the Concentrated Solar Power (CSP) technology.
CSP can trap and store heat, making power available even when the sun is absent. The first goal that brought out CSP was the need to come up with a method that will make energy be available in all the places in the world.
A close study of Sham 1 project will be taken. The study involves evaluation of the economic, environmental, and technical aspects. The total requirements for the successful operation of the project, as well as the benefits that emanate from the use of the project will be investigated.
Projections whether the price of electricity will come down in the expansive market after implementing the project will also be considered. The Sham 1 project in Abu Dhabi will act as a sample in the entire CSP technology.
According to Shams 1 project, the goal was to provide 100MW using CSP parabolic type. In order to get 100MW the mechanical cycle was to change input to work. The amount of heat input can be calculated by:
The mass flow rate of both fluids could be dependent so that the rate of oil thermal fluid will be:
From equation (i), the heat rate of Booster and solar plants source could be determine . The following equation shows the relation of finding amount of heat energy for each part:
The parameter that is significant under economic study include the levelized cost. In term of equations, it is calculated by the following equation:
From above, LCOE is the Average lifetime levelized electricity generation cost.
is investment expenditure in the year t.
is operations and maintenance expenditure in the year t (in calculations, other costs (such as a carbon price) may be added in to this variable or separately).
is fuel expenditure in the year t, r discount rate and n is amortization period . Economic issues, which would study the capital, cost of solar power plants, the cost of fuel consumption, land, Operation and Maintenance (O&M), lifetime of the turbine and the discount rate (the cost of capital) are essential in determining where to invest in Sham 1 project or not.
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However, the process of investing in CSP Shams 1 plant and the period required for getting revenue depends on the price per Kilowatt produced. Furthermore, land to set up the project is vital. In Sham’s project, the land was given freely through the support of Abu Dhabi government. Therefore, its operation and maintenance is also easy.
The major goal when developing CSP was to minimize pollution in the environment in order to find out the amount of CO2 captured compared to the fossil fuel power plant. The plant will be assumed to be operated totally by fossil fuel (N.G), so:
Through this calculation, it can be found out that pollution by CO2 has been reduced greatly by CSP method .
- Levelized Cost of Energy (LCOE): It is defined as a constant unit cost of a payment stream that has the same present value as the total cost of building and operating a power plant over its lifetime.
- IRR: (internal rate of return)
It represents a discount rate of net revenues (revenues and costs) generated throughout the life of the investment project which is equal to the values of the net income and the purchase price of a capital asset. Any difference between them is equal to zero.
It is described as the amount of sales revenue equal then the project with total costs (fixed + variable), and by that point the project achieves losses and then realize profits. In other words, break-even analysis is a tool used to determine when the project can cover all his expenses and begins to make a profit.
Recommendations or results
From the study on Sham’s project, it can be concluded that CSP is the best method to employ as it requires less cost and is environment friendly .
The discount rate
An interest rate used to bring future values into the present when considering the time value of money.
Operations and maintenance is the process of managing all day-to-day activities of a machine in order to maximise its performance.
This is the solid surface of the Earth not covered by water.
This is the period that a project needs for completion and duration that it still meets its intended function. Beyond this time, a project becomes dysfunctional or non-beneficial to society.
In conclusion, CSP technology is said to have really boosted the supply of energy in the whole globe since it easily taps energy, which does not affect the environment. Occasionally, it might be costly, but when the government comes in with incentives, then it becomes cheap to most people .
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