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Is Concentrated Solar Power (CSP) a feasible option for Sub-Saharan Africa?: Investigating the techno-economic feasibility of CSP in Tanzania

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  • Aly, Ahmed
  • Bernardos, Ana
  • Fernandez-Peruchena, Carlos M.
  • Jensen, Steen Solvang
  • Pedersen, Anders Branth

Abstract

There is a noticeable shortage of solar energy related information in Sub-Saharan Africa, especially about Concentrated Solar Power (CSP) technology. The Tanzanian official generation expansion plan till 2040 showed high dependency on coal and gas fired power plants and a negligible role of renewables other than large hydropower. This study investigates the techno-economic feasibility of CSP technology in Tanzania, through modelling Parabolic Trough and Solar Tower CSP technologies using the System Advisor Model developed by the U.S. National Renewable Energy Laboratory. Under debt interest rate of 7%, the levelized cost of electricity (LCOE) for the modelled Solar Tower plants ranges from 11.6 to 12.5 ¢/kWh while for the modelled Parabolic Trough plants ranges from 13.0 to 14.4 ¢/kWh. The LCOE increases significantly from 14.4 ¢/kWh (at 7% debt interest rate, for government-led projects) to 25.9 ¢/kWh (at 18% debt interest rate, for private investors-led projects). The study concludes that the feasibility of CSP in Tanzania is strongly dependent on the financing conditions. Policy mechanisms to de-risk CSP projects' investment through accessing lower debt interest rate are required to ensure the competitiveness of CSP projects in the country.

Suggested Citation

  • Aly, Ahmed & Bernardos, Ana & Fernandez-Peruchena, Carlos M. & Jensen, Steen Solvang & Pedersen, Anders Branth, 2019. "Is Concentrated Solar Power (CSP) a feasible option for Sub-Saharan Africa?: Investigating the techno-economic feasibility of CSP in Tanzania," Renewable Energy, Elsevier, vol. 135(C), pages 1224-1240.
    • Handle: RePEc:eee:renene:v:135:y:2019:i:c:p:1224-1240
    DOI: 10.1016/j.renene.2018.09.065
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    References listed on IDEAS

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    3. Emmanuel Wendsongre Ramde & Eric Tutu Tchao & Yesuenyeagbe Atsu Kwabla Fiagbe & Jerry John Kponyo & Asakipaam Simon Atuah, 2020. "Pilot Low-Cost Concentrating Solar Power Systems Deployment in Sub-Saharan Africa: A Case Study of Implementation Challenges," Sustainability, MDPI, vol. 12(15), pages 1-14, August.
    4. Tazi, Nacef & Safaei, Fatemeh & Hnaien, Faicel, 2022. "Assessment of the levelized cost of energy using a stochastic model," Energy, Elsevier, vol. 238(PB).
    5. Gutiérrez-Alvarez, R. & Guerra, K. & Haro, P., 2023. "Market profitability of CSP-biomass hybrid power plants: Towards a firm supply of renewable energy," Applied Energy, Elsevier, vol. 335(C).
    6. Almaktar, Mohamed & Shaaban, Mohamed, 2021. "Prospects of renewable energy as a non-rivalry energy alternative in Libya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    7. Ephraim Bonah Agyekum & Tomiwa Sunday Adebayo & Festus Victor Bekun & Nallapaneni Manoj Kumar & Manoj Kumar Panjwani, 2021. "Effect of Two Different Heat Transfer Fluids on the Performance of Solar Tower CSP by Comparing Recompression Supercritical CO 2 and Rankine Power Cycles, China," Energies, MDPI, vol. 14(12), pages 1-19, June.
    8. Chennaif, Mohammed & Maaouane, Mohamed & Zahboune, Hassan & Elhafyani, Mohammed & Zouggar, Smail, 2022. "Tri-objective techno-economic sizing optimization of Off-grid and On-grid renewable energy systems using Electric system Cascade Extended analysis and system Advisor Model," Applied Energy, Elsevier, vol. 305(C).
    9. Kamath, Harsh G. & Majumdar, Rudrodip & Krishnan, A.V. & Srikanth, R., 2022. "Cost and environmental benefits of coal-concentrated solar power (CSP) hybridization in India," Energy, Elsevier, vol. 240(C).
    10. Ephraim Bonah Agyekum & Tahir Khan & Nimay Chandra Giri, 2023. "Evaluating the Technical, Economic, and Environmental Performance of Solar Water Heating System for Residential Applications–Comparison of Two Different Working Fluids (Water and Glycol)," Sustainability, MDPI, vol. 15(19), pages 1-24, October.
    11. Cibelle Pereira Trama & Amaro Olímpio Pereira Júnior & Ana Paula Cardoso Guimarães & André Luiz Diniz & Leonardo dos Santos Reis Vieira, 2021. "Cost–Benefit Analysis of Solar Thermal Plants with Storage in a Hydrothermal System," Energies, MDPI, vol. 14(18), pages 1-27, September.

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