Global installed CSP costs drop 26% in 2018;

Global CSP costs drop 26% in 2018, capacity factors rise

The average levelized cost of energy (LCOE) of new CSP plants fell by 26% in $2018 to $185/MWh as developers implemented the latest technology and installation learnings, the International Renewable Energy Agency (IRENA), said in a new report.

Some 0.5 GW of new CSP plants were commissioned in 2018, predominantly in China, Morocco and South Africa. Installed costs ranged between $3,400/kW and $7,000/kW, depending on project location and storage duration, IRENA said.

Average CSP costs should fall further this year as a number of Chinese plants will come online at lower installed costs, IRENA said. Recent project tenders show that a "step change" in costs will occur in the next four years, placing costs consistently in the range of $60/MWh to $100/MWh, it said.

CSP developers are using design and installation learnings and economies of scale to lower CSP plant costs.

Last month, Morocco awarded the 800 MW CSP-PV Noor Midelt I project to an EDF-consortium at a record low price of $71/MWh. ACWA Power and partners are currently developing the 950 MW Noor Energy 1 CSP-PV project in Dubai at a price of $73/MWh.

Rising capacity factors are also helping to drive down CSP costs, IRENA noted.

The global weighted average capacity factor of CSP plants rose by six percentage points in 2018 to 45%, it said.

       Average CSP capacity factors by technology, storage duration

                                                         (Click image to enlarge)

Source: IRENA's 'Renewable Power Generation Costs in 2018' report, May 2019.