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7/28/2019 Alstom Power a blueprint for a global renewable energy future
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7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
A long history in South Africa
Alstom in South Africa for more than 100 years
Leading provider of Power Generation- 80% of the installed turbine generator capacity is manufactured by
Alstom,- 30% of boilers- Supplied major equipment to 12 out of 13 of SAs coal power plants,
and the only Nuclear Plant- Supplied boilers for 4 out of 13 of SAs coal power plants
Supplier of Turbine Islands and Control & Instrumentation systems toMedupi and Kusile projects with- 50% of localisation in the Turbine and Generator packages
Contributor to South Africas Clean Powerinitiatives through the retrofit ofArnot and Koeberg Power Stations, and Gariep Hydro project
Alstom South Africa is a status level 4 BBBEE contributor
7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
REFIT should allow all CSP technologies
REFIT structure currently considered does not allow for bids using
direct-steam tower without integrated thermal storage
Recommendation: Implement a single tariff for all CSP technologies
- Encourages technological innovation and broad diversity of solutions
- Enhances flexibility of project developers & sponsors to optimize offeringto market and customer requirements over time
- Maximizes impact of a subsidy fostering selection of most sustainable,economically viable, efficient and long-term competitive technologies &
projects
Result: No artificial limitations and constraints on plant design
Implement a single, technology agnostic tariff for CSP
7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
Diversity of Technologies
Market examples
Spain
Attractive tariffs enabled development ofvarious CSP technologies and configurations
United States
Technological neutral subsidy schemeInvestment Tax Credit (ITC) allows for utilityscale projects
Accelerated depreciat ion benefi t (MACRS)allows for tax equity monetization
Renewable Portfolio Standards (RPS)
mandates long-term renewable energy targetsin 37 states
No technology-specific subsidies
Parabolic trough Compact linear Fresnel
Power tower Parabolic dish
7 project / 92 MW55 project / 2.6GW
6 project / 3.3 MW
Utility scale projects under constructionlarger than 100 MWe:
Tower: Ivanpah 392 MW (w/o storage)Trough: Solana 280 MW (with storage)
12 project / 460 MW
7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
Benefits of BrightSources technology
- Currentlyunder construction on the largest solarthermal facility in the world (Ivanpah)
- 392MWe / 1,000,000 MWh per year
- 1,000 construction jobs
- 140,000 typical U.S. homes powered per year
- $2.2 billion project is fully f inanced
- ~$500mm of third-party equity from NRG, Googleand others
- $1.6bn U.S. government loan guarantee
- Located in a highly competitive power market forrenewable energy solutions
- Technology advantages
- High temperature (550C) and pressure (160 bar)
- Direct steam power generation well-understoodby utilities and operators
- Compatible with thermal storage and fossil fuelhybridization
12 project / 460 MW
Tower without storage should be aviable option
7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
Low tariff rates do not support projecteconomics and long-term market growth
REFIT rates are too low to support large-scale project
development and long-term investment in South Africa- Recent price reductions further erode project economics
- Penalizes projects already in the development phase
- Increases risk of project completion
Adverse outcome of low REFIT rates include:- Reduced or non-existent project stakeholder margins and economics
- Depressed volume commitment to South Africas renewable energy industry
- Reduced impact, if any, of economics of scale
- Less localization of supply, engineering and manufacturing
- Unattractive project economics leading to reduced financeability andinability to secure critical equity and debt capital commitments
Low prices create the risk of handicapping a critical industry before asingle project gets built
7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
A key consideration for effective tariffs
Localisation requires certainty
Take-away
Step 1: Cost of technology will decrease with
increasing production volumes based on:
learning curves (from global operations)
scale effects (including size of installation)
standardisation to enable transfer of technology
Step 2: Further cost reduction may occur through
localisation of production
offsetting transportation costs
leveraging potential lower cost structures
Reducing LCoE requires scale
Components Invest. J ob creations
Receiver 40 M ~ 140 J obsMirrors 30 M ~ 300 J obsSteel structures 10M ~ 70 J obs
Typical factory loads of 200-400MW/yrrequire long term commitment
Low tariffs put at risklong-term market sustainability
Source: EER
Source: Frauenhofer-Institute
7/28/2019 Alstom Power a blueprint for a global renewable energy future
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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.
Conclusion
Alstom and BrightSource
Committed to develop Solar Thermal in South Africa
Together via our partnership
For the long-term