plan your business strategy for csp investment ... - csp today€¦ · use the csp today markets...

CSP Today Markets Report 2014Plan your business strategy for CSP investment with in-depth analysis of global CSP market conditions. Special focus on South Africa, Saudi Arabia, Morocco, USA, India, Chile, China and UAE.

Report highlights include:

Understanding the Local CSP Ecosystem Gain in depth analysis of local supply and value chains, government policies and incentives. Find out who the key government players are in each market as well as the major financing bodies, developers, EPCS, component suppliers and service providers.

Market size See detailed project pipelines for over 27 markets as well as in depth assessment of alternative industrial applications for CSP in eight major markets, including mining, desalination and enhanced oil recovery.

Markets forecast to 2024 Find out projected installed CSP capacity in eight major markets within the next ten years to position your business ahead of the curve.

For more information, visit www.csptoday/marketsreport.com

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Industry overview

The global CSP industry has experienced a significant shift over the past few years.

Despite the setbacks of the latest legislative developments in Spain, more and more markets are emerging on a global level providing new opportunities for CSP market growth and development. CSP stakeholders are now redefining their business strategies to identify new areas of investment.

The CSP Today Markets Report 2014 aims to provide you with the information you need to make a qualified assessment of both established (USA) and emerging (South Africa, Saudi Arabia, Morocco, India, Chile, China and the UAE) market opportunities.

By drawing on local expertise and experience in the eight major markets, CSP Today provides unique insight into each market both in the immediate term and in the long-term outlook.

The Markets Digest at the end of this report provides a succinct overview of 19 markets that are not as prevalent as the eight major markets, but still worth keeping tabs on for existing and increasing CSP activity.

I hope you find the insight provided by this report helpful.

Previous Reports Purchasers include

For more information visit www.csptoday.com CSP today MaRkEtS REPoRt 2014 | 2

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Key questions addressed

■ What is the current status of the CSP industry in light of the collapse of the Spanish CSP market?

■ Which markets show the most potential for future CSP growth?

■ Who are the main CSP players in emerging CSP markets?

■ How strong is the supply and value chain in the emerging CSP markets?

■ Do alternative applications such as enhanced oil recovery and desalination have a place in the future of CSP?

■ How much installed CSP capacity can you expect by 2024?

Key reasons to purchase this research

■ Gain in depth analysis and insight into the key CSP markets: A look at South Africa, Saudi Arabia, Morocco, USA, India, Chile, China and the UAE to help uncover the best opportunities and help understand the challenges of each market

■ Policies and incentives: Uncover how much support there is from the local governments for future deployment of CSP and their strengths and weaknesses

■ alternative CSP applications: Take a closer look at the potential for market growth including enhanced oil recovery, desalina-tion and mining

■ CSP today’s scorecard: Identify the best opportunities for investors and understand which countries are the most attractive for CSP deployment

■ detailed project pipelines: Gain insight into the 27 CSP markets to better understand which markets are gaining a foothold in the global CSP market

■ Supply chain: Find out who makes up the local supply chain for each of the eight key markets including key developers, financ-ers, suppliers and government bodies

Who needs this report

This report is primarily aimed at suppliers and developers looking to expand their businesses in new markets.

Suppliers ■ Get a comprehensive overview of current CSP project pipelines in 27 markets

■ Understand the competitive landscape of eight major markets: see who the main component suppliers, developers and EPCs are in each market and identify potential openings in the supply chain

■ Use the CSP Today markets forecast to assess how much installed CSP capacity you can expect in each of the eight major markets up to 2024 in order to gauge the potential long-term value of your investment in each market

developers ■ Understand the local CSP ecosystem and market from government programmes, policies and incentives, to the permitting pro-

cesses and key government agencies involved in the CSP approval process

■ Learn how local content requirements may affect your development strategy

■ Find out which raw materials and components can be locally sourced

■ Identify the key financial players in each market are and which renewable energy projects they have previously invested in

Suppliers and developers ■ Gain knowledge on the potential of alternative CSP applications such as enhanced oil recovery, desalination and mining applica-

tions to assess the viability of future CSP project pipelines outside of government CSP targets


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Written and reviewed by local experts

In order to gain in depth analysis of international CSP markets, CSP Today brought on board a number of local experts, either in the capacity of authors, peer reviewers or information providers. Not all contributors can be listed below due to confidentiality reasons, but below are some of the experts who shared their expertise with CSP Today.

ChinaChapter written by Cayetano HernandezCountry Manager for ChinaSun2Markets http://www.s2msolutions.com/team.php

South africa Chapter written by Prof Alan BrentAssociate Director Centre of Renewable and Sustainable Energy Studies (CRSES)Stellenbosch University, South Africahttp://www.crses.sun.ac.za/home-people.php

USaPeer reviewed by Arnold LeitnerFounder and ex-CEO of SkyFuel and now President, Arnold Leitner & Partners LLC (ALNP)

indiaPeer reviewed by Geetanjali Patil Choor CEO Energy Guru Further insight provided by Manoj Divakaran, Managing Director - Empereal-KGDS Renewable Energy Pvt. Ltd and Gopal Somani, CSP expert and former Technical Director of RRECL

MoroccoPeer reviewed by Gianleo FrisariAnalyst, Climate Policy Initiative (and author of the San Giorgio Group Case Study: Ouarzazate I CSP)

Saudi arabiaAdditional insight provided by Marc Norman Project Finance Lawyer at Chadbourne & Parke and Director of Marketing & Communica-tions at the Middle East Solar Industry Association

UaEAdditional insight provided by Marc Norman Project Finance Lawyer at Chadbourne & Parke and Director of Marketing & Communica-tions at the Middle East Solar Industry Association

ChileAdditional insight provided by Rodrigo Escobar, Profesor Asociado Escuela de Ingeniería, Pontificia Universidad Católica de Chile.


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About CSP Today 3Welcome 4Thought Leadership CSP Today’s business Intelligence Portfolio 5Acknowledgements 6Table of Contents 7List of Figures and Tables 14Status definitions 20Methodology 21Executive Summary 23

1: Current status of the CSP Industry 29By Heba Hashem

Introduction 30Chapter Summary 30

1.1. CSP Industry in Review 301.1.1. The Collapse of the Spanish CSP Market 301.1.2. First Large-Scale Projects Come On-Line: USA and UAE 321.1.3. Saudi Arabia Launches White Paper 341.1.4. Chilean Government Releases Details for CSP Tender Process 351.1.5. Delays in South African and Indian Bidding Rounds 361.1.6. Morocco Launches RFQ for Phase Two of Ouarzazate 371.1.7. Kuwait Makes its Presence Felt 371.1.8. China CSP Progress and FiT 38

1.2. CSP Industry Outlook 38References 46

Chapter 2: CSP Forecast and Markets Scorecard 47By Groupe Reaction

Chapter Summary 482.1. Market Scorecard 482.2. CSP Today Global Markets Forecast 502.3. Survey Results 54

Chapter 3: South Africa 58By Alan Brent

Chapter Summary 60Country Overview 60

3.1. Electricity Market 623.1.1. Electricity Consumption 623.1.2. Electricity Demand 623.1.3. Grid Transmission 623.1.4. Market Structure Diagram 65

3.2. CSP Market 653.2.1. CSP-Specific Policy 653.2.2. CSP Project Profiles 683.2.3. Local Content Requirements 68

3.3. Local CSP Ecosystem 72

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3.3.1. Key Government Agencies 723.3.2. Permitting Agencies 743.3.3. Local Consultants and R&D bodies 743.3.4. Financing Organizations 753.3.5. Developers and EPC Firms 76

3.4. Local Component Supply 773.4.1. Pipes 773.4.2. Pumps 783.4.3. Tracking Devices 783.4.4. Receivers 783.4.5. Power Blocks 783.4.6. Heat Exchangers 783.4.7. Raw Material Availability 78

3.4.7.1. Glass 783.4.7.2. Steel 783.4.7.3. Molten Salt 79

3.5. Alternative CSP Markets 793.6. Markets Forecast 82

Conclusion 84References 85Acronyms 86

Chapter 4: Kingdom of Saudi Arabia 87By Marco Poliafico


4.1. Electricity Market 914.1.1. Electricity Consumption 914.1.2. Grid Transmission 924.1.3. Electricity Demand 934.1.4. Market Structure Diagram 95

4.2. CSP Market 954.2.1. Local Content Requirements 1004.2.2. Solar Resource Forecasting 1014.2.3. CSP Project Profiles and Time Frames 1014.3.1. Local CSP Ecosystem 1024.3.1. Key Government Agencies 1034.3.2. Independent Water and Power Producers (IWPP) 1044.3.3. Permitting Agencies 1054.3.4. Local Consultants and R&D bodies 1064.3.5. Financing Organizations 1074.3.6. Utilities and Transmission Grid Operators 1084.3.7. Developers and EPC and Engineering Companies 1094.4.1. Supply of Local Components 1114.4.2. Raw Material Availability 113

4.5. Alternative CSP Markets 1144.5.1. Desalination 1144.5.2. Enhanced Oil Recovery 115

4.6. Market Forecast 115Conclusion 117References 118Acronyms 121


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Chapter 5: Morocco 123By Marco Poliafico, Peer reviewed by Gianleo Frisari



5.2. CSP Market 1305.2.1. CSP-Specific Policy 1305.2.2. CSP Project Profiles 1315.2.3. Noor CSP: Next Program 1335.2.4. Future Developments 1345.2.5. Local Content Requirements 134

5.3. Local CSP Ecosystem 1345.3.1. Key Government Agencies 1355.3.2. Utilities and Independent Power Producers 1365.3.3. Permitting Agencies and Feasibility Study Providers 1375.3.4. Local Consultants and R&D Bodies 1395.3.5. Financing Organizations 1405.3.6. Developers and EPC Firms 1435.4.1. Local Component Supply 1465.4.2. Raw Material Availability 147

5.5. Alternative CSP Markets 1485.6. Market Forecast 148


Chapter 6: U.S.A. 154By Marco Poliafico, Peer Reviewed Arnold Leitner


6.1. Electricity Market 1586.1.1. Federal and State Regulators 1586.1.2. Buying and Selling Electricity 1586.1.3. Electricity Consumption 1606.1.4. Grid Transmission 1616.1.5. Electricity Demand and Consumption 1616.1.6. Market Structure Diagram 162

6.2. CSP Market 1636.2.1. Loan Guarantees 1636.2.2. Federal Policy Incentives 1636.2.3. State-level Incentives 1646.2.4. Renewable Portfolio Standards 1646.2.5. Solar Energy Zones 1656.2.6. Research and Development 1656.2.7. Local Content Requirements 1666.2.8. CSP Project Profiles 1666.2.9. Challenges Facing the Development of CSP in the USA 170


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6.2.9.1. Shale Gas 1706.2.9.2. High Cost 1706.2.9.3. Need for Policy Review 170

6.3. Local CSP Ecosystem 1716.3.1. Key Government Agencies 1726.3.2. Utilities and Independent Power Producers 1736.3.3. Permitting Agencies 1746.3.4. Local Consultants and R&D Bodies 1756.3.5. Financing Organizations 1766.3.6. Developers and EPC Firms 1776.4.1. Local Component Supply 1786.4.2. Raw Material Availability 179

6.5. Alternative CSP Markets 1806.5.1. Hybridization 1806.5.2. Enhanced Oil Recovery 180


Chapter 7: India 188By Marco Poliafico, Peer reviewed by Geetanjali Patil Choori



7.2. CSP Market 1957.2.1. The Jawaharlal Nehru National Solar Mission 1957.2.2. Delays and Extensions 1967.2.3. Hybrid Program 1977.2.4. Renewable Purchase Obligations and Renewable Energy Certificates 1987.2.5. Current CSP Projects 1997.2.6. Local Content Requirements 201

7.3. Local CSP Ecosystem 2027.3.1. Indian CSP ecosystem 2027.3.2. Manufacturing Capability and Local Supplies 2027.3.3. Steep Learning Curve 2037.3.4. Key Government Agencies 2037.3.5. Independent Water and Power Producers and Utilities 2057.3.6. Permitting Agencies and Feasibility Study Providers 2067.3.7. Local Consultants and R&D Bodies 2087.3.8. Financing Organizations 2097.3.9. Developers and EPC firms 2127.4.1. Supply of Local Components 2157.4.2. Raw Material Availability 219

7.5. Alternative CSP Markets 2207.5.1. Process Steam Applications of Concentrating Solar Thermal 2207.5.2. UNDP- GEF project 221


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7.5.3. Biomass Solar Thermal Hybrid Projects 2217.5.4. Desalination 221


Chapter 8: Chile 230By Marco Poliafico



8.2. CSP Market 2398.2.1. National Energy Strategy: 2012-2030 2398.2.2. CSP Suitability: Highest DNI in the World 2408.2.3. Energy Demand Profile 2408.2.4. First CSP Tender 2418.2.5. Local Content Requirements 2428.2.6. CSP Project Profiles 243

8.3. Local CSP Ecosystem 2448.3.1. Key Government Agencies 2458.3.2. Utilities and Independent Power Producers 2468.3.3. Permitting Agencies and Feasibility Study Providers 2468.3.4. Local Consultants and R&D Bodies 2468.3.5. Financing Organizations 2488.3.6. Developers and EPC Firms 249

8.4. Local Component Supply 2508.5. Alternative CSP Markets 250

8.5.1. Case Study: Minera El Tesoro, Chile 2518.6. Market Forecast 252


Chapter 9: China 257By Cayetano Hernandez



9.2. CSP Market 2669.2.1. CSP-Specific Policy 2669.2.2. CSP Project Profiles 2699.2.3. Local Content Requirements 272


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9.2.3.1. Investing 2729.2.3.2. Equipment 273

9.3. Local CSP Ecosystem 2749.3.1. Key Government Agencies 2749.3.2. Permitting Agencies 2759.3.3. Financing Organizations 2759.3.4. Transmission Grid Operators 2779.3.5. Developers, EPC Firms and Utilities 277

9.4. Local Component Supply 2799.4.1. Steam Generators 2799.4.2. Turbines 2809.4.3. Pumps 2809.4.4. Valves 2819.4.5. Receiver Tubes 2829.4.6. Heat Transfer Fluid (HTF) 2839.4.7. Collector Frames 2839.4.8. Raw Material Availability 284

9.4.8.1. Steel 2849.4.8.2. Glass 2869.4.8.3. Concrete 2869.4.8.4. Molten Salt 287

9.5. Alternative CSP Markets 2889.5.1. Coal - ISCC 2889.5.2. Desalination 2909.5.3. Enhanced Oil Recovery 291


Chapter 10: United Arab Emirates 299By Marco Poliafico


10.1. Electricity Market 30310.1.1. Electricity Consumption and Demand 30410.1.2. Grid Transmission 30510.1.3. Market Structure Diagram 306

10.2. CSP Market 30610.2.1. Masdar 30710.2.2. CSP Project Profiles 30810.2.3. Local Content Requirements 311

10.3. Local CSP Ecosystem 31110.3.1. Key Government Agencies 31210.3.2. Independent Water and Power Producers 31310.3.3. Local Utilities and Transmission Grid Operators 31510.3.4. Permitting Agencies 31610.3.5. Local Consultants and R&D Bodies 31710.3.6. Financial Organizations 31810.3.7. Developers, EPCs and Engineering companies 31910.4.1. Supply of Local Components 322


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10.4.2. Raw Material Availability 32410.5. Alternative CSP Markets 324

10.5.1. Desalination 32410.5.2. Enhanced Oil Recovery 325


Chapter 11: Rest of the World - CSP Today Markets digest (19 Countries) 331Contents 331List of Tables 331

11.1 Algeria 33311.2 Australia 33511.3 Brazil 33711.4 Egypt 33911.5 Greece 34111.6 Israel 34311.7 Italy 34411.8 Jordan 34611.9 Kenya 34711.10 Kuwait 34811.12 Mexico 34911.13 Namibia 35011.14 Oman 35111.15 Portugal 35211.16 Qatar 35311.17 Spain 35411.18 Thailand 35811.19 Tunisia 35911.20 Turkey 361

Acronyms 363

Appendix A: Markets Scorecard Methodology 365Appendix b: Forecast Methodology 370Appendix C: Alternative Applications for CSP 380


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Chapter 1: Current status of the CSP IndustryList of Figures

Figure 1(1): Spain CSP Market Growth 2013 39Figure 2(1): USA CSP Market Growth 2013 39Figure 3(1): UAE CSP Market Growth 2013 39Figure 4(1): Chile CSP Market Growth 2013 40Figure 5(1): South Africa CSP Market Growth 2013 40Figure 6(1): India CSP Market Growth 2013 40Figure 7(1): Morocco CSP Market Growth 2013 40Figure 8(1): Kuwait CSP Market Growth 2013 41Figure 9(1): China CSP Market Growth 2013 41Figure 10(1): Parabolic Trough Technology - Project Pipelines 2013 (excludes projects in operation) 42Figure 11(1): Fresnel Technology - Project Pipelines 2013 (excludes projects in operation) 43Figure 12(1): Dish Technology - Project Pipelines 2013 (excludes projects in operation) 44Figure 13(1): Tower Technology - Project Pipelines 2013 (excludes projects in operation) 45

List of TablesTable 1(1): Spain’s Popular Party Government - Major Legislative Changes Affecting CSP (2012-2013) 31Table 2(1): UAE’s First CSP Project 32Table 3(1): Large-scale CSP Projects Underway in the USA 33Table 4(1): Chile’s Tender Process 35Table 5(1): Moroccan Solar Plan: Key Dates 37Table 6(1): Shagaya Project Phase One - Key Specifications 38

Chapter 2: CSP Markets Scorecard and ForecastList of Figures

Figure 1(2): CSP Market Capacity Forecast Until 2024 51Figure 2(2): LCOE Forecast Until 2024 52Figure 3(2): Optimistic Country-Wise Global CSP Capacity Until 2024 (MW) 53Figure 4(2): Conservative Country-Wise Global CSP Capacity Until 2024 (MW) 53Figure 5(2): Pessimistic Country-Wise Global CSP Capacity Until 2024 (MW) 54Figure 6(2): Cumulative CSP Plant Capacity by 2018 55Figure 7(2): Cumulative CSP Plant Capacity by 2023 55Figure 8(2): Most promising CSP markets Until 2018 56Figure 9(2): Most promising CSP markets Until 2023 56

List of TablesTable 1(2): CSP Market Scorecard as of 2013 49Table 2(2): Market Forecast Summary 50Table 3(2): CSP Market Forecast Comparison 2012-2013 52Table 4(2): Limiting and Enabling Factors for CSP Market Growth 57

Chapter 3: South AfricaList of Figures

Figure 1(3): Direct Normal Irradiation in South Africa, Lesotho and Swaziland 61Figure 2(3): Transmission Development Plan 2011 – 2020 63Figure 3(3): Demand Forecast Comparisons 64

List of Tables and Figures


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Figure 4(3): Linkages Between Various Plans to Address the Integration of Distributed Electricity Generation from IPPs 66

Figure 5(3): Maximum Allocations in Round 3 of the REIPPPP 66Figure 6(3): First Stage Qualification Criteria for Selection in the Second Stage 67Figure 7(3): Barriers to Entry of CSP in the South African Market 70Figure 8(3): Short-term Priority Actions to Address CSP Challenges 71Figure 9(3): Illustration of the Current and Projected Market Structures 73Figure 10(3): Typical Project Structure in the South African Context 75Figure 11(3): Consumption Mix in South Africa (Energy) 79Figure 12(3): Consumption Mix in South Africa (Electricity) 80Figure 13(3): Consumption Mix in Industrial Sector (Energy) 80Figure 14(3): Consumption Mix in Industrial Sector (Electricity) 81Figure 15(3): Displacement of Fossil Fuel (left) and Solar Boosting (right) 82Figure 16(3): Installed CSP Capacity in South Africa Until 2024 (MW) 83Figure 17(3): CSP Cumulative Energy Production in South Africa Until 2024 (TWh) 83

List of TablesTable 1(3): Drivers and Barriers 62Table 2(3): CSP Projects in South Africa 69Table 3(3): Key Government Agencies in South Africa 72Table 4(3): Permitting Agencies in South Africa 74Table 5(3): Local Consultants and R&D Bodies 74Table 6(3): Financing Organizations Operating in South Africa 75Table 7(3): Developers and EPCs With Interests in the South African Market 76

Chapter 4: Kingdom of Saudi ArabiaList of Figures

Figure 1(4): Direct Normal Irradiation in Saudi Arabia 90Figure 2(4): The GCC Grid Interconnection Project 93Figure 3(4): Electricity Demand in Saudi Arabia by Sector 94Figure 4(4): Saudi Arabia’s Oil Balance on a Business-as-Usual Trajectory 96Figure 5(4): Current Indications for CSP and PV Allocations in Saudi Arabia 98Figure 6(4): Installed CSP Capacity in Saudi Arabia Until 2024 (MW) 116Figure 7(4): CSP Cumulative Energy Production in Saudi Arabia Until 2024 (TWh) 117

List of TablesTable 1(4): Drivers and Barriers 90Table 2(4): Competitive Procurement Process Requirements 99Table 3(4): Local Content Requirements Outlined for the Introductory Round of the CPP 100Table 4(4): Ministries and Government Agencies in Saudi Arabia 103Table 5(4): Utility Companies in Saudi Arabia 104Table 6(4): Permitting and Environmental Assessment Agencies Operative in Saudi Arabia 106Table 7(4): Consultants and R&D Bodies Operative in Saudi Arabia 106Table 8(4): Main Funding Institutions and Banks Operative in Saudi Arabia 107Table 9(4): Utility Companies in Saudi Arabia 108Table 10(4): Developers, EPCs and Engineering Companies Operating in Saudi Arabia 109Table 11(4): Locally Available CSP Components Available Locally in Saudi Arabia 111Table 12(4): CSP Raw Material Suppliers in Saudi Arabia 114


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Chapter 5: Morocco List of Figures

Figure 1(5): Direct Normal Irradiation in Morocco 126Figure 2(5): Key Stakeholders in the Noor I CSP Project 132Figure 3(5): Installed CSP Capacity in Morocco Until 2024 (MW) 149Figure 4(5): CSP Cumulative Energy Production in Morocco until 2024 (TWh) 149

List of TablesTable 1(5): CSP Drivers and Barriers in Morocco 127Table 2(5): Morocco CSP Projects 131Table 3(5): Ministries and Government Agencies in Morocco 135Table 4(5): Major Utilities and Independent Water and Power Producers in Morocco 136Table 5(5): Permitting Agencies and Environmental Assessment Agencies in Morocco 138Table 6(5): Consultants and R&D Bodies in Morocco 139Table 7(5): Main Funding Institutions and Banks in Morocco 141Table 8(5): Developers and EPC Firms in Morocco 144Table 9(5): CSP Components and Suppliers Available Locally in Morocco 146Table 10(5): Raw material available locally in Morocco and suppliers 147

Chapter 6: U.S.A.List of Figures

Figure 1(6): Direct Normal Irradiation in the United States 157Figure 2(6): California Summer Daily Demand Curve 161Figure 3(6): Parabolic Trough and Tower CSP Pipelines in the United States 171Figure 4(6): BrightSource Coalinga CSP Plant For EOR 181Figure 5(6): Installed CSP capacity in the USA until 2024 (MW) 183Figure 6(6): CSP Cumulative Energy Production in the USA until 2024 (TWh) 183

List of TablesTable 1(6): Drivers and Barriers in the United States 157Table 2(6): Overview of the Power Markets in the United States 159Table 3(6): Main Fiscal Incentives Available in the U.S. for CSP Technology 163Table 4(6): List of CSP Projects in the USA (those highlighted in yellow have secured a PPA) 166Table 5(6): Key Government Agencies in the United States 172Table 6(6): Utilities and IPPs Operative in the United States 173Table 7(6): Permitting and Environmental Assessment Agencies in the United States 174Table 8(6): Consultants and R&D bodies in the United States 176Table 9(6): Main Funding Institutions and Banks Operative in the United States 176Table 10(6): Developers and EPC Firms Operative in the United States 177Table 11(6): Components and Suppliers Available in the United States 178Table 12(6): Raw Material Suppliers in the USA 180

Chapter 7: IndiaList of Figures

Figure 1(7): Direct Normal Irradiation in India 191Figure 2(7): Installed CSP Capacity in India Until 2024 (MW) 224Figure 3(7): CSP Cumulative Energy Production in India until 2024 (TWh) 225

List of TablesTable 1(7): Drivers and Barriers in India 192Table 2(7): Growth of Renewable Energy Share in India’s Electricity Mix 193


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Table 3(7): Selection Criteria for the Tender Process of CSP projects in India 195Table 4(7): India NSM – Achievements and Lessons Learnt from JNNSM Phase 1 197Table 5(7): CSP Hybrid Pilot Program - Project Configuration 197Table 6(7): India Solar Program Tariffs 198Table 7(7): India Solar Thermal Cost – Benchmark 199Table 8(7): India Solar Thermal Tariffs – Benchmark 199Table 9(7): Current CSP Projects in India 199Table 10(7): Indian CSP Ecosystem 202Table 11(7): Ministries and Government Agencies in India 203Table 12(7): Independent Water and Power Producers and Utilities in India 206Table 13(7): Permitting Agencies and Environmental Assessment Agencies in India 207Table 14(7): Consultants and R&D Bodies in India 208Table 15(7): Main Funding Institutions and Banks Operative in India 210Table 16(7): Developers and EPC Firms Operative in India 213Table 17(7): Components Available Locally in India 215Table 18(7): Raw Material Availability and Suppliers 220Table 19(7): The World’s First Linear Fresnel Desalination Plant 221Table 20(7): LFR Desalination Plant Specifications 222

Chapter 8: ChileList of Figures

Figure 1(8): Direct Normal Irradiation in Chile 233Figure 2(8): Load Profile of the SIC System on 10 June 2013 241Figure 3(8): Installed CSP Capacity in Chile Until 2024 (MW) 252Figure 4(8): Cumulative CSP Energy Production in Chile to 2024 (TWh) 253

List of TablesTable 1(8): Chile CSP Development: Drivers and Barriers 234Table 2(8): Transmission Power Systems of Chile 237Table 3(8): Criteria of the Tender Process for CSP Plants in Chile (February 2013) 241Table 4(8): CSP Projects in Chile 243Table 5(8): Ministries and Government Agencies in Chile 246Table 6(8): Utilities and Independent Power Producers in Chile 246Table 7(8): Permitting Agencies and Environmental Assessment Agencies Operative in Chile 246Table 8(8): Consultants and R&D Bodies Operative in Chile 247Table 9(8): Main Funding Institutions and Banks Operative in Chile 249Table 10(8): Developers, EPCs and Engineering Companies Operative in Chile 249Table 11(8): Techno-Economic Data of Mineral El Tesoro CSP Plant 251

Chapter 9: China List of Figures

Figure 1(9): Direct Normal Irradiation in China (DNI Map) 261Figure 2(9): Electricity Production in China by Source of Generation 263Figure 3(9): Installed Capacity Distribution in China 264Figure 4(9): China’s Current Power Network 265Figure 5(9): Map of Wind Feed-In-Tariff 267Figure 6(9): Flow Diagram of Approval Stages in China 275Figure 7(9): Power Grid Companies in China 277Figure 8(9): Non-metallic Mineral Resources in China 287Figure 9(9): Map of Coal Resources in China 289Figure 10(9): DNI Resources in China 289


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Figure 11(9): Desalination Capacity in Coastal Cities (m3/day) in China (2010) 291Figure 12(9): China’s Oil Production and Consumption 1990-2013 292Figure 13(9): Location of China’s Major Oil Fields 293Figure 14(9): Locations of Known CSP Projects in China 293Figure 15(9): Installed CSP Capacity in China Until 2024 (MW) 295Figure 16(9): Cumulative Energy Production in China Until 2024 (TWh) 295

List of TablesTable 1(9): Drivers and Barriers 262Table 2(9): Erdos Solar Plant Parameters (First CSP FiT) 268Table 3(9): List of CSP Projects in China 269Table 4(9): Foreign Investment Categories 272Table 5(9): Key Government Agencies in China 274Table 6(9): Permitting Agencies in China 275Table 7(9): Financing Organizations in China 276Table 8(9): Renewable Energy Projects Co-financed by Development Banks 276Table 9(9): Transmission Grid Operators in China 277Table 10(9): Electric utilities in China 278Table 11(9): Main Steam Generator Manufacturers in China 279Table 12(9): Turbine Manufacturers in China 280Table 13(9): Pump Manufacturers in China 281Table 14(9): Valve Manufacturers in China by Industry 281Table 15(9): Receiver Manufacturers in China 282Table 16(9): Heat Transfer Fluid Providers in China 283Table 17(9): Collector Frame Manufacturers in China 284Table 18(9): China Steel Exports and Imports (2012) 284Table 19(9): Main Steel Companies in China by Production (2012) 285Table 20(9): Top 10 Chinese Glass Manufacturers (2012-2013) 286Table 21(9): CSP Mirror Manufacturers in China 286Table 22(9): Concrete Producers in China by Production 287Table 23(9): Molten Salt Producers in China 288Table 24(9): China’s Oil Production, Consumption, and Import (2011) 291Table 25(9): EOR Projects Implemented in China 294

Chapter 10: United Arab EmiratesList of Figures

Figure 1(10): Direct Normal Irradiation in the UAE 302Figure 2(10): Masdar’s Integrated Business Units 308Figure 3(10): Location of North East Bab Field, UAE 325Figure 4(10): DNI Conditions in the UAE 325Figure 5(10): Installed CSP Capacity in the UAE 2006-2024 (MW) 327Figure 6(10): CSP Cumulative Energy Production in UAE Until 2024 (TWh) 327

List of TablesTable 1(10): Drivers and Barriers 303Table 2(10): UAE CSP Project Portfolio, 2013 309Table 3(10): Shams 1 Project Overview 309Table 4(10): Shams 1 Project Details 309Table 5(10): Ministries and Government Agencies in the UAE 312Table 6(10): Independent Water and Power Producers in the UAE 314Table 7(10): Utility Companies in the UAE 315


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Table 8(10): Permitting Agencies and Environmental Assessment Agencies in the UAE 316Table 9(10): Consultants and R&D Bodies Operative in the UAE 318Table 10(10): Main Financing Institutions and Banks in the UAE 319Table 11(10): Developers, EPCs and Engineering Companies Operative in the UAE 320Table 12(10): CSP Components Available Locally in the UAE 322Table 13(10): CSP Raw Material Suppliers Available in the UAE 324

Chapter 11: Rest of the World - CSP Today Markets Digest (19 Countries)List of Tables

Table 1(11):Current CSP Projects in Algeria 333Table 2(11): Current CSP Projects in Australia 335Table 3(11): Current CSP Projects in Brazil 337Table 4(11): Current CSP Projects in Egypt 339Table 5(11): Current CSP Projects in Greece 341Table 6(11): Current CSP Projects in Israel 343Table 7(11): Current CSP Projects in Italy 345Table 8(11): Current CSP Projects in Jordan 346Table 9(11): Current CSP Projects in Kenya 347Table 10(11): Current CSP Projects in Kuwait 348Table 11(11): Current CSP Projects in Mexico 349Table 12(11): Current CSP Projects in Oman 351Table 13(11): Current CSP Projects in Portugal 352Table 14(11): Current CSP Projects in Qatar 353Table 15(11): Current CSP Projects in Spain 354Table 16(11): Current CSP Projects in Thailand 358Table 17(11): Current CSP Projects in Tunisia 359Table 18(11): Current CSP Projects in Turkey 361

Appendix A: Markets Scorecard MethodologyList of Figures

Figure 1(A): CSP Market Indicators and Influential Factors 366List of Tables

Table 1(A): Survey Based Indicator Weights 367

Appendix B: Forecast MethodologyList of Figures

Figure 1(B): Forecast Influential Parameters 371Figure 2(B): Technology Diffusion Lifecycle 373

List of TablesTable 1(B): Influencing Factors and Weights for CSP Development 372Table 2(B): High Impact Decision Points 376Table 3(B): Factor Ranking System 376Table 4(B): Optimistic Deployment of Plant in Construction and Development 377Table 5(B): Conservative Deployment of Plant in Construction and Development 378Table 6(B): Pessimistic Deployment of Plant in Construction and Development 378

Appendix C: Alternative Applications for CSPList of Figures

Figure 1(C): Technical Concepts for Integrating CSP into Desalination Plants 384

List of TablesTable 1(C): Desalination Technologies 383Table 2(C): Key Parameters of Desalination Technologies 383

www.csptoday.com CSP TODAY MARKETS REPORT 2014 | 19

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Methodology

CSP Today’s Markets Report 2014 responds to the most critical needs of the CSP industry, representing six months of research (primary and secondary) and culminating in 385 pages of high-quality data and analysis, including 90 figures and 150 tables.

Identifying Industry Needs:Based on 25+ research calls with industry executives and survey responses from 300 + CSP players, CSP Today uncovered:

� The markets most attractive to developers, EPCS, suppliers and financing bodies

� Information gaps and needs within those markets

Results:Eight major markets stood out: South Africa, Saudi Arabia, Morocco, USA, India, Chile, China and the United Arab Emirates. Within these markets, respondents wanted to know:

� CSP project pipelines � Who the main players are in each market, how much support there is from the government for future deployment, who the main financing firms are active in that market and how robust the local supply chain is in each market

� The potential for alternative CSP applications within these markets

� A long-term outlook of what can be expected from these markets within the next five to ten years

Methodological Approach:Project pipelines: Making use of the CSP Today Global Tracker, all project data is is industry validated and taken from August 2013, providing detailed information of projects announced, planned, in development, construction and operation.

Local CSP ecosystem: Building upon the knowledge of local authors and peer reviewers, each market has either been written or reviewed by on-the-ground players active in the local CSP market.

Markets forecast: Key influencing factors were identified and weighted to analyse their impact on the future growth of the market until 2024.

For a detailed explanation of the markets forecast see Appendix B.

Expert Analysis: This report has been researched and written by a team of highly-qualified and impartial industry experts ensuring that only the highest quality, most relevant and digestible analysis is published.

All information is accurate as from August 2013.

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Unconventional Fossil Fuel Reserves

PV Price

CSP Today Market EnablingFactors and Forecast Strategy

direct Factor

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Indirect Factor decision Points

Technology Maturity

Market Expansion

Environmental Measures

International Agreements

Conventional Power Cost

Ease of Financing

Market Saturation

National CSP Targets

Local Energy Demand

Permitting

Incentives

Grid Coverage

Water Availability

DNI

Global Energy Demand

Global Economic Stability

Political Stability

Population/Economic Growth

High Cost of Energy

Presence of Supporting Industries and Local Expertise

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X The below extract has been taken from Chapter 3 on CSP in South Africa written by Prof Alan Brent. The contents of the chapter examine the nature of the electricity market in South Africa, CSP specific policies and incentives and project pro-files, the local supply and value chain as well as the forecast for future CSP development to 2024.

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3.3. Local CSP Ecosystem

3.3.1. Key Government Agencies

Table 3(3): Key Government Agencies in South Africa

Name Roles and Responsibilities

Department of Energy (DoE) Formulates national policies and related legislation

National Energy Regulator of South Africa (NERSA) Regulates and enforces laws pertaining to the energy sector

Department of Public Enterprises (DPE) Responsible for state-owned assets, including the national utility, Eskom

Department of Finance Formulates fiscal policy and allocations to state-funded developments

National Treasury Management of state funds

Department of Trade and Industry (DTI) Develops local industries, and control imports and exports

Other national departments, such as Transport, Land Affairs, Mineral Resources, etc.

Develops appropriate infrastructure for economic development, allocation of land, etc.

Presidential Infrastructure Coordinating Commission Formulation and implementation of the 17 Strategic Integrated Projects, especially SIPs 8, 9 and 10 in terms of green energy and electricity transmission and distribution for all

Eskom Electric power transmission and distribution at a national level

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Figure 9(3): Illustration of the Current and Projected Market Structures

Source: SAPVIA, 2013

PRODUCTION

ESKOM HOLDINGS SOC LTD

TRANSMISSION

Wires

System Operator

RETAIL

Gn1...

Gn2...

Imports

IPP’s

National Control

KSACS

DX

MUNICS

Wholesaler

Single BuyerRE-IPP

ESKOMGeneration

ESKOM TXTransmission

‘wires’

ISMO SOCSystem Operator

ESKOM DXDistribution

ISMO-TXagreement

Gn1...

Gn2...

Imports

IPP’s

National Control

KSACS

DX

MUNICSWholesaler

Single Buyer

RE-IPP Wholesale tariff

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3.3.2. Permitting Agencies Table 4(3): Permitting Agencies in South Africa

Name Role

Department of Environmental Affairs (DEA) Strategic Environmental Assessments, authorization of EIAs, determination of water allocations

Provincial Governments Approvals of economic developments, especially infrastructure and land rezoning

District and local municipalities Approvals of economic developments, especially infrastructure and land rezoning, and distribution of the electricity

3.3.3. Local Consultants and R&d bodiesTable 5(3): Local Consultants and R&D Bodies

Name Role

Sastela Industry lobby group

GeoSun Solar resource measurements

South African National Energy Development Institute (SANEDI)

Coordination and cooperation of CSP R&D

Technology Innovation Agency (TIA) Commercialization of CSP R&D/Technology

Council for Scientific and Industrial Research (CSIR) Contract R&D

Universities, such as Stellenbosch University, through the Centre for Renewable and Sustainable Energy Studies (CRSES) and the Solar Thermal Energy Research Group (STERG)

Contract R&D, pre-feasibility studies and skills development

South African Renewable Energy Technology Centre (SARETEC)

Skill development

EPC companies and project developers such as Emvelo, Kathu Solar Consortium and Solafrica Thermal Energy

Plant construction, commissioning and operation

Consultants, such as Ernst & Young, enolcon, aurecon, and others

Feasibility studies

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3.3.4. Financing organizationsTable 6(3): Financing Organizations Operating in South Africa

Name RolePrevious Renewable Energy Projects

Industrial Development Corporation (IDC)

State-owned funding agency All current CSP projects

Development Bank of Southern Africa (DBSA)

State-owned funding agency All current CSP projects

Private banks, such as Investec and Rand Merchant Bank

Provides debt-funding for projects Bokpoort, KaXu

The typical project structures, within the South African financial governance framework, are summarized below, as well as the typical project headline terms.

Local banks have also introduced the issuing of debt capital market bonds as a means to finance utility-scale projects.

Figure 10(3): Typical Project Structure in the South African Context

Source: Standard Bank, 2013

CommunityTrust

SecondarySponsor

InvestmentHoldco

Turbine/Panel suppliers

ConstructionCompanies

leaseAgreement

BEE Entity

ProjectCo

Insurance

Lenders

EPC Contractor

O&M Contractor Turbine Supplier

Key Sponsor

Eskom

NERSA

30-60%

ShoreholderAgreement

Subcontracts

Offtaker

Regulation

Subcontract

12-40% 0-25% 2.5-5%

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BEE refers to a Black Economic Empowerment entity, which manifests in a black-owned investment entity. For example, for the Bokpoort CSP IPP, the Lereko Group was instrumental in raising the necessary funding. Lereko raises the necessary capital from a network of black-owned enterprises. In the case of Bokpoort, the community trust is in the form of Solafrica Community Investment Company, which manages the shareholding of the community that inhabits the land around the developed project.

3.3.5. Developers and EPC FirmsThere is a substantial, well-established construction industry in South Africa, which is able to provide the civil works required for a CSP plant. The similarities in

construction between power projects being built in South Africa – Medupi and Kusile – and CSP projects provide the evidence for this. Major local construction companies include Murray & Roberts, Group 5, Aveng Group, Basil Read, Crowie and WBHO. Often, the construction companies have local partners or subcon-tractors which they use if unable to provide the entire service themselves. Several construction companies view CSP as a good business opportunity and often as more valuable compared with alternative renewable energy technologies. This is because CSP provides a larger amount of civil works due to the significant amount of concrete and steel structures required for a CSP plant, compared with an onshore wind or solar PV plant.

Table 7(3): Developers and EPCs With Interests in the South African Market

Company Roles and ResponsibilitiesPrevious Renewable Energy Projects in South Africa

Abengoa Solar Subsidiary of Abengoa. The company designs, finances, constructs, and operates solar power stations.

Khi (100 MW) and Kaxu (50 MW) CSP projects

ACWA ACWA Power is a Saudi Arabia-based developer. Owner and operator of independent water & power projects structured on a concession or utility outsourcing contract model.

Bokpoort CSP (50 MW)

Afri-Devo Afri-Devo Pty (Ltd) is a fully black-owned construction and property development company based in Kimberley, Northern Cape.

!Xun Khwe Solar Farm and Metsimatala Solar Farm

Areva Solar power technology developer focusing on Linear Fresnel

!Xun Khwe Solar Farm and Metsimatala Solar Farm

BrightSource American company that designs, builds, finances and operates utility-scale solar power plants.

Crowie Concessions South African construction and development company

Bokpoort (50 MW)

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Emvelo Independent solar power company. Develops, owns, operates and maintains utility scale concen-trating solar thermal power plants

Illangalethu CSP project (100 MW)

Ennex Technology developer focusing on Dish Stirling

Ennex Dish Stirling project (20 MW)

Industrial Development Corporation

Government-owned institution that promotes economic growth and industrial development in South Africa

Khi (100 MW) and Kaxu (50 MW) CSP projects

Kumba Iron Ore South Africa’s largest iron ore mining company. Operator and developer of Kumba Solar Park.

Kumba Solar Park (100 MW)

Ripasso Technology developer focusing on dish Stirling

30 kW Stirling dish modules in Upington

Solafrica Thermal Energy South African energy development company and independent power producer; Co-developer of the Bokpoort CSP project

Bokpoort (50 MW)

SolarReserve Developer, EPC, owner of solar projects

Humansrus CSP project (100 MW)

Source: CSP Today Global Tracker, August 2013

3.4. Local Component SupplyAn overview of CSP components available locally in South Africa is provided below. The current potential capabilities and capacities for supplying the CSP industry have been considered in terms of:

� Piping industry � Construction industry � Pump suppliers � Tracking device suppliers � Heat exchange suppliers � Molten salt suppliers � Receiver suppliers � Power block component suppliers � Glass � Steel � Molten salt

3.4.1. PipesPiping in South Africa is mainly supplied to the mining, logistics, petrochemical, building and construction, engineering, manufacturing, energy and power, water and automotive industries.

The piping in CSP plants consists of both low and high pressure pipes. The high performance alloy material required for the high pressure pumps can be supplied by only three companies globally. The type of piping required for CSP projects will depend on the design of the plant and could be:

� Spiral welded pipes – used for example on parabolic troughs; or

� Seamless pipes. A number of local companies focus only on spiral pipes, for example, for use in the transportation of water. The specifications for these pipes are different to that of CSP. These companies typically secure large infrastructure

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About CSP Today

CSP Today is the reference point for CSP professionals and a cornerstone for communications within the industry. We have been a leading provider in this global market for the past 6 years. We provide the industry with focused news, events, online up-to-the minute data, analysis, reports, updates and information for the Concentrated Solar Thermal Power industry. CSP Today’s mission is to be the hub of the CSP community enabling dialogue throughout the industry ad driving CSP forwards and to provide its clients with the most accurate and timely project and plant intelligence, based on the highest quality research.

CSP Today experts are on the phone everyday collecting and verifying global industry data and information direct from EPCs, develop-ers, suppliers, utilities and government bodies for you to have at your fingertips.


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Thought leadership – CSP Today’s Business Intelligence Portfolio:

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CSP Today Global Tracker

Access current CSP market, policy, and project and supplier data at your fingertips.

� CSP plants at every single stage across the globe – Announced, planning, development, construction, commissioned and in operation

� In-depth CSP plant data – Access all the plants’ details including technology choice, technical specification, stakeholders, suppliers, incentives and finance

� Country-by-country policy - Understand each CSP market with data on market size, policies and incentives, energy market structure and up-to-date infor-mation on EPCs and developers operating in the market

� Global CSP supplier list – The most comprehensive component supplier list serving every part of a CSP plant from heliostats to pumps and valves

CSP Today Quarterly Update

The CSP Today Quarterly Update serves as a companion to the Global Tracker, highlighting major trends in the industry and collating information making it easily available for you to read at a glance.

The Quarterly Update provides detailed analysis of the biggest developments in the global CSP market on a quarterly basis, providing readers with country-by-country breakdowns of key government players, game changing events and changes to project pipelines.

CSP Today Technology Reports:

Parabolic Trough Report 2014: Cost, Performance and Thermal Storage and Tower Report 2014: Cost, Performance and Thermal Storage

� Critical Market Specific Cost Data: Receive the most up-to-date, industry validated cost data break-downs from CAPEX to OPEX in defined optimal Parabolic Trough and Tower plants across 8 markets (Chile, India, Morocco, Saudi Arabia, South Africa, UAE, Spain and US).

� Realistic LCOE Models: Determine the LCOE of Parabolic Trough and Tower technology by market, benchmark emerging CSP markets against the traditional key markets and identify the longitudinal trend with market specific LCOE forecasts.

� Energy Yield and Performance Output Data & Analysis: Identify and benchmark the market specific energy yield and performance characteristics, including solar field thermal output, online parasitics, net energy, total operating hours, solar-to-electricity efficiency and water consumption.

� The Evolution of Thermal Storage (TES): Use the global project pipelines to understand how and to what extent TES is being increasingly incorporated into Parabolic Trough and Tower plants, and gain insight into the latest R&D initatives in TES tipped to reduce cost and optimize performance.

� Market Share: Strategize your investment in and gauge your profit from Parabolic Trough or Tower - the most widely deployed CSP technology - by understanding the long-term market share, growth and viability of this technology, including market-by-market pipelines and key comparisons with other CSP technologies.


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