Page 43 - Respond 2016 Magazine
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           fossil fuel-based generating solutions. In this future energy mix, both   At Morocco, the activity at the NOOR Complex - which when fully
           PV and CSP electricity are complementary as depicted in the daily   developed by 2018 will become the largest solar facility in the
           demand picture below for a real system during a 24 hour period.  world at a single site - has moved into the construction of the
                                                                second phase.
           The challenge with CSP technology unlike in the case of wind and
           PV is that it has not yet become cost competitive compared to fossil   In 2015 ACWA Power-led consortiums won both the plants to be
           fuel based alternatives even in the parts of the world where the   constructed at this second phase; a 200 MW parabolic trough based
           resources are abundant and land costs are minimal.   CSP plant with a storage capacity of seven hours and a 150MW solar
                                                                tower based CSP plant with a storage capacity of eight hours. Upon
           The reason for this is rooted in the history of how this technology   completion, this complex will power more than one million homes
           developed and was deployed. Considerable research, development   and will save one million tons of oil equivalent (TOE) and avoid
           and innovation went into PV technology in the early days to provide   the emission of 3.7 million tonnes of CO2 per year while reliably
           power solutions for space exploration and satellites. It also saw   delivering solar energy during the day and well into the night.
           land-based utility-scale application and roof-top application take
           off as concerns around climate change took root. Greater capacity   Increasingly, the Independent Power Producer (IPP) model of
           was implemented and newcomers stepped up to innovate, driving   contract is helping to achieve cost reductions on each successive
           down costs to the level they are at today with just short of 400GW of   project as more capacity is procured, greater innovation is brought
           PV generation capacity having been implemented around the world   to bear and new participants enter the supply chain generating a
           and a rapidly growing market having been established.  competitive market.

           Morocco leads the way                                Retaining value
           There was no particular reason for CSP-based technology to   IPP transfers the responsibility to private sector to design, build,
           develop until recent times when the ability to economically store   finance, construct and operate the power generation plants where
           heat via the molten salt medium was recognized. Even then, in   the payment for the generated electricity is only made as the
           order to encourage the development of this technology, certain   energy is dispatched with the private sector. This means the private
           countries offered a feed in tariff encouragement which indeed   sector takes all the risks such as technology, timely completion of
           helped to kick start deployment but provided little incentive to   new build, cost overrun in capital and operating cost and even the
           innovate and reduce cost.                            resource risk - with the public sector only taking demand risk as
                                                                the energy is provided on long-term take or pay contracts and with
           CSP technology slowly evolved to the point of having been deployed   the use of a transparent competitive procurement process, where
           at a level of 3GW, less than one hundredth of PV deployment levels   the tenderer is given the opportunity to offer the most competitive
           by then at a cost of 35 US cents /kWh. In 2011 Masen, the then newly   price instead of offering capacity within a preset feed in tariff.
           formed renewable power procurement agency in Morocco, launched
           a pioneering and visionary CSP procurement program using a   Also, as is being demonstrated through the South African REFIT
           transparent competitive tender process.              and the Moroccan renewable energy programs, well implemented,
                                                                transparent and competitive procurement processes are changing
           The first phase - NOORo1, a 160MW CSP plant with three hours of   the game on renewable energy project sourcing. Procurement
           molten salt storage capacity at Ouarzazate, a plateau surrounded   processes that define the required objectives of the transition to
           by the Atlas mountains - attracted three bidders including a   a green economy are not only leading to renewable energy being
           consortium led by ACWA Power who delivered a tariff of 18.9 US   procured at some of the lowest costs achieved in the world but
           Cents/kWh, 24% lower than the second bidder thus resetting the   also at the same time are achieving vital supplementary objectives
           tariff outlook and relevance of CSP technology.      as meaningful industrialization, economic development, value
                                                                retention within country and employment creation.
           The NOORo1project is now constructed and has been dispatching
           electricity since the beginning of 2016.             In simple terms, both the models are achieving much more than
                                                                simply renewable Megawatts without impacting cost of the delivered
           Mitigation potential                                 energy. By relentlessly focusing on a mission to reliably provide
           In 2011, ACWA Power also participated in the second round of   electricity and - where required - desalinated water at the lowest
           the government of South Africa’s Renewable Energy Independent   possible cost, ACWA Power is consistently delivering tenders for
           Power Producers’ Procurement Program managed by the IPP Unit at   providing bulk capacity on long-term contracts which are typically
           the Treasury of the Ministry of Finance at a site at Bokpoort near the   20% lower in cost than the next competitor. Regardless of which
           city of Upington.                                    country, or the size of project, we support the development of CSP
                                                                technologies to be capable of being able to compete shoulder-to-
           At Bokpoort, we delivered another pace-setting tariff for a 50 MW   shoulder with fossil fuel alternative generation solutions for reliable
           CSP plant with nine hours of molten salt storage. This project is   electricity for use both at day light hours and at night.
           already now operational and is demonstrating the versatility and
           power of CSP technology. Within the first month of its commercial   With a portfolio of over 1000MWs in either operation and/or
           operation, the newly inaugurated plant served more than 200,000   construction and with a pipeline of another 1,000 MWs to deploy,
           households had produced electricity generated using the heat of   ACWA Power is proud to be a leading developer, owner and operator
           the sun for a continuous period of 161 hours, equivalent to almost   of renewable energy in the emerging markets, contributing to
           six days, day and night – a new African record.      achieving the commitments made in Paris last December.

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