ESKOM South Africa
CSP Augmentation Conference
Case B2 - Spain
August 2013
1
Puerto Errado 2 Project Overview
Project Profile and milestones
Puerto Errado 2 Milestones
Puerto Errado 2
Key data
 Dec 2008:
EPC Contractor
Novatec Solar
Application
Electricity generation through steam
Solarfield Layout
28 rows of linear Fresnel collectors, conventional
steam turbine equipment and generator
 April 2012: Completion of Construction
Solar Field Length
940.8m
 Aug 2012:
Net Aperture Area
302,000m²
Turbine
2x 15 MW turbine generators GE Termodyne
Cooling
Air cooled condensers
Operating
Temperature
Up to 270°C
Operating Pressure
Up to 55bar
Peak Thermal Output
150MW th
Peak Electrical
Output
30MW el
Electrical Production
49 GWh p.a.
Due Diligence of EBL on PE1
 June 2009: Signing Investment Agreement
 April 2010: Start of Site Activities
 April 2011: Financial Close
Start of Operations
 June 2013: Final Acceptance Tests
confidential
2
Puerto Errado 2 Project Overview
Project Stakeholders
Owner’s Technical Advisor
Lenders Advisors
Owner (5 Swiss utilities)
85 %
Lenders
Off-taker
Project
Company
PE2
O&M Contractor
confidential
EPC Contractor
3
Lessons learnt I:
Bankability is key for the project development strategy
 Stepwise commercialization of technology
– Demonstrator -> Small scale project -> Mid/large scale projects
 Demonstration and testing in close cooperation with EPC
contractors, technical advisors, customers and lenders
confidential
4
Bankability is key for the project development strategy
Technology Overview and Development History
Steam
Parameters
Nova-1
(direct
saturated
steam
generation)
Supernova
(direct
superheated
steam
generation)
DMS
Solar Field
Base Design
(excl. Receiver)
Product Testing and
Development
Heat
Transfer
Fluid
Up to 310°C(1)
Up to 100bar
Nova-1
Non-vacuum Tube
Receiver
Water
Up to 550°C(1)
Up to 150bar
Nova-1
Vacuum Tube
Receiver
Water
Nova-1
Vacuum Tube
Receiver
Molten Salt
Up to 550°C(1)
No pressure limitation(2)
(direct molten
salt)
2005
Receiver
Design
2009
2011
Commercialisation
Nova-1
Target
Application
 Enhanced Oil Recovery
(EOR)
 Other low to medium
temperature process
heat
 Integrated Solar
Combined Cycle
(ISCC)
 Augmentation
 Storable & dispatchable
power generation
 Combined Heat & Power
(CHP)
 Storable & dispatchable
power generation at
minimized cost
 Combined Heat & Power
(CHP)
2013
Commercialisation
Supernova
2014
Commercialisation
DMS
(1) Current temperature limit of absorber tube coating specified by suppliers
(2) Water / steam cycle pressure not relevant for solar field design pressure due independent systems
confidential
5
Bankability is key for the project development strategy
Supernova Demonstator in operation since 2011
DMS Demonstrator will be built in 2013
Puerto Errado 1 (PE1)
 9MW th/1.4MWel test plant
 In operation since 2009
 Mirror surface of 18,000m²
Puerto Errado 2 (PE2)
 30MW el commercial plant
 In operation since 2012:
 Mirror surface of 300,000m²
Supernova Demonstrator
 In operation since 2011:
 Demonstrates superheated
steam generation at 550°C
DMS Demonstrator
 Realization scheduled for 2013
 Will demonstrate direct molten
salt as heat transfer fluid
confidential
6
Bankability is key for the project development strategy
Live steam Augmentation with Supernova technology
Small scale project award expected for September 2013
confidential
7
Bankability is key for the project development strategy
Direct molten salt collector with 2 tank storage
Pilot plant realization scheduled for 2014
confidential
8
Lessons learnt II:
Focus on core competences
 Novatec´s various roles in the PE2 realization required significant
specialized resources and financial contribution
 Focus in the future on the areas of real strength and leave other
aspects to various Business Partners.
 Establishment as a turn-key solarfield supplier including the
operation and maintenance of the solarfield
confidential
9
Focus on core competences
Novatec Solar’s share of PE2´s value chain
Engineering, Procurement and
Construction (EPC)
Project
Development
Solar Field
Manufacturing
Turnkey Solar
Field Delivery
Receiver
Fabrication
Project and
Site Management
Primary Reflector
Fabrication
Assembly
Key Materials
and Components
Commissioning
Balance
of Plant
Balance of Plant
Operation &
Maintenance
Project
Ownership
(15%)
O&M
Solar field
O&M
Balance of Plant
Standard
Raw Materials
Novatec Solar Core activities
Customers/Partners/Others
confidential
10
Focus on core competences
Novatec Solar’s Future Activities along the Value Chain
Engineering, Procurement and
Construction (EPC)
Project
Development
Solar Field
Manufacturing
Balance of Plant
&
Storage System
Turnkey Solar
Field Delivery
Operation &
Maintenance
Receiver
Fabrication
Project and
Site Management
Storage System
O&M
Solar field
Primary Reflector
Fabrication
Assembly
Balance of Plant
O&M
Balance of Plant
Key Materials
and Components
Commissioning
Project
Ownership
Standard
Raw Materials
Novatec Solar Core activities
Novatec Solar Potential Activities
Customers/Partners/Others
confidential
11
Lessons learnt III:
Focus on real markets
 Real CSP market of Spain are considered to be moderate only
 A special CSP tariff regime provided an attractive framework for long
term investments and created an quite artificial market
 Later on announced tariff reductions are a threat to the economics of
the existing plants and perspective of future investments
 Future focus on the most promising regions and markets based on a
number of criteria, like:
– Suitable DNI data;
– Variety of industrial and power applications; and
– Steam and/or power demand increase.
confidential
12
Focus on real markets
Middle East, Chile, Australia, South Africa
1
3
Middle Eastern and North African (MENA)
 The region has high solar irradiance and access to finance capital
 The Saudi Arabian Government has submitted a white paper for a
54GW renewable energy programme by 2032
 Significant oil fired gas turbine capacity installed
Australia has an immediate opportunity to build a 30MWel solargas hybrid plant
 Australia has excellent solar resources and recent positive
developments in the CSP sector are promoting growth
 Novatec Solar has been supported with RATCH - Australia by the
Australia Renewable Energy Agency (ARENA) to develop a
30MW el solar-gas hybrid plant
 Major market for Enhanced oil recovery (EOR)
 Several CSP projects in the region are in operation or under
construction
 Novatec Solar has been awarded to execute a FEED study on
EOR
2
Latin America and especially Chile represent an area of
significant growth in CSP
 Chile has the world’s best solar resource with annual DNI in the
north in excess of 2700kWh/m2/year
1
1
 Chile has set up a legal framework for utilities to progressively have
a 10% share of renewables by 2024
 Award for small scale augmentation project expected in September
2013
2
4
3
 Expansion from Chile to other Latin American Countries like Brazil,
Mexico and Peru
Appropriate for solar thermal power plants:
Excellent
Very good
Good
Not suitable
Novatec Solar Project Locations
confidential
13
Focus on real markets
South Africa as Target Market
4
South Africa has a considerable project pipeline

Excellent Solar Resources (DNI> 2900 kWh / m2) in
some regions

South Africa has been exploring solar power generation
for some time and set-up the 400MWel CSP program
REIPPP

Established local economy and infrastructure with big
potential of local sourcing

Green field opportunities in Power Generation as well
as brown field potential in Solar Augmentation projects

Total installed capacity of coal fired plants: 37,681 MW
offering brown field potential in Solar Augmentation
projects
Source: SolarGIS
Coal fired power station
confidential
14
Puerto Errado 1, Spain 2009
Liddell solar augmentation, Australia 2012
Puerto Errado 2, Spain 2012
15