Exploring the Potential Competitiveness of Utility-Scale Photovoltaics plus Batteries with Concentrating Solar Power, 2015–2030
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Dept. of Energy (DOE), Washington DC (United States). Office of Solar Energy Technologies Program
Declining costs of both solar photovoltaics (PV) and battery storage have raised interest in the creation of “solar-plus-storage” systems to provide dispatchable energy and reliable capacity. There has been limited deployment of PV-plus-energy storage systems (PV+ESS), and the actual configuration and performance of these systems for dispatchable energy are in the early stages of being defined. In contrast, concentrating solar power with thermal energy storage (CSP+TES) has been deployed at scale with the proven capability of providing a dispatchable, reliable source of renewable generation. A key question moving forward is how to compare the relative costs and benefits of PV+ESS and CSP+TES. While both technologies collect solar radiation and produce electricity, they do so through very different mechanisms, which creates challenges for direct comparison. Nonetheless, it is important to establish a framework for comparison and to identify cost and performance targets to aid meeting the nation’s goals for clean energy deployment. In this paper, we provide a preliminary assessment comparing the cost of energy from CSP+TES and PV+ESS that focuses on a single metric: levelized cost of energy (LCOE). We begin by defining the configuration of each system, which is particularly important for PV+ESS systems. We then examine a range of projected cost declines for PV, batteries, and CSP. Finally, we summarize the estimated LCOE over a range of configuration and cost estimates. We conclude by acknowledging that differences in these technologies present challenges for comparison using a single performance metric. We define systems with similar configurations in some respects. In reality, because of inherent differences in CSP+TES and PV+ESS systems, they will provide different grid services and different value. For example, depending on its configuration, a PV+ESS system may provide additional value over CSP+TES by providing more flexible operation, including certain ancillary services and the ability to store off-peak grid energy. Alternatively, direct thermal energy storage allows a greater capture of solar energy, reducing the potential for curtailments in very high solar scenarios. So while this analysis evaluates a key performance metric (cost per unit of generation) under a range of cost projections, additional analysis of the value per unit of generation will be needed to comprehensively assess the relative competitiveness of solar energy systems deployed with energy storage.
- Research Organization:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Solar Energy Technologies Office
- DOE Contract Number:
- AC36-08GO28308
- OSTI ID:
- 1321487
- Report Number(s):
- NREL/TP-6A20-66592
- Country of Publication:
- United States
- Language:
- English
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