Solar Thermal: The Future of Energy
In the midst of discussions around GenCost primarily focusing on nuclear energy costs, an essential discovery has been overshadowed. This finding has the potential to revolutionise the deployment of renewable technology, particularly solar thermal power. This technology is well-positioned to replace retiring coal plants like Eraring and contribute to Australia’s transition towards renewable energy and manufacturing dominance.
GenCost research reveals that solar thermal power boasts the lowest levelised cost of energy (LCOE) among ‘flexible load, low emission’ technologies. It is not only more cost-effective than gas peaking plants but also comparable to coal-fired plants, even without factoring in a carbon cost.
The Advantages of Solar Thermal Power
Solar thermal power offers the same benefits as fossil fuel generators in terms of dispatchability, synchronous generation, and system strength. However, it stands out by producing zero emissions and offering lower electricity costs, as highlighted by GenCost.
The Role of Concentrating Solar Thermal Power (CSP)
Concentrating solar thermal power (CSP) systems harness sunlight using mirrors to generate heat, which can be stored for on-demand use or to produce electricity through steam turbines. Unlike intermittent renewables, CSP is fully dispatchable and can store energy to provide up to 15 additional hours of operational load, ensuring continuous power supply day and night.
While CSP is widely adopted in regions with abundant solar resources like southern Europe, the Middle East, and China, its scale deployment in Australia is yet to be realised. Current policy and market frameworks have prioritised the integration of cheaper renewables such as PV and onshore wind, overlooking the unique benefits of CSP.
The Case for Solar Thermal in Australia
Australia’s exceptional solar resources position it as an ideal candidate for large-scale CSP implementation. The fabrication of CSP systems using materials readily available in the country aligns with existing capabilities and promotes regional employment. Companies like Vast are already contributing to the local production of CSP components.
Furthermore, CSP complements intermittent renewables by offering reliable, cost-effective, and emissions-free heat and electricity round the clock. This synergy is crucial for industrial decarbonisation and can drive green iron and fuel production, aligning with Australia’s renewable energy and green manufacturing ambitions.
Embracing Solar Thermal for a Sustainable Future
As Australia aims to establish itself as a renewable energy and green manufacturing powerhouse, the inclusion of CSP is imperative. Projects like Vast’s 30MW VS1 in Port Augusta mark significant progress towards establishing utility-scale CSP plants in the country.
To facilitate the integration of CSP into Australia’s energy landscape, mechanisms like the Capacity Investment Scheme must incentivise projects based on extended dispatchable capacity. Policymakers need to acknowledge the critical role of CSP in bridging the renewable dispatchable capacity gap, especially in light of Eraring’s extension.
With the undeniable benefits and potential of CSP, it is essential for stakeholders to embrace this technology to drive Australia’s energy transition towards sustainability and resilience.
