Only very few investors share the vision and the courage to invest in solar thermal next generation technologies. Most investors dose not have the capabilities to evaluate and assess the potential of new innovations; nevertheless they cannot afford ignoring the current trend of investing in the so called “Cleantech” opportunity. However, the big bucks are invested in companies that are either pursuing proven technologies (like Solel solar systems) or consist of experienced people with vast experience as systems integrators that have design and assembly experience (like BrighSource).
This two leading solar thermal companies, Solel and LuzII/BrightSource, are both piggybacking on the success of the 354MW SEGS in California and prefer to utilize the sun on the lower temperatures range (400º-600ºC), rather than daring to go for higher concentration and Brayton cycles. Brightsource has raised lately another 115MUSD from several corporate and venture investors, while Solel announced a few months ago a 105MUSD investment.
Solel invested huge efforts during the last years on developing new vacuum tube collectors to replace the previous LUZ heating collecting elements. Solel succeeded in enhancing the selective anti reflective with a new solar radiation shield designed to shield the glass to metal connection zone and the bellow connections, while improving the overall efficiency of the system. It seems that by reducing tube replacement costs, Solel’s achievements contribute to reducing electricity production costs due to additional energy output.
Solel’s business model so far was on equipment sale, where they have a real advantage, despite Schott breathing down their neck. While Schott’s business model remains in providing technology/equipment, Solel, according to its president and CEO Avi Brenmiler, has taken a strategic decision to go for building and operating solar thermal power stations and even selling electricity to utilities, in parallel to ongoing investments in R&D and establishing its new production line in Spain.
The German Schott, is enhancing its position and market share both in photovoltaics and solar thermal, where they continue concentrating on manufacturing and selling receivers for parabolic trough thermal power plants to developers. So far, they are the leading manufacturer, with two solar receiver production lines, one in Mitterteich Germany and another in Sevilla Spain. And are planning a third one in Albuquerque, which will bring Schott’s worldwide receiver production capacity to more than 600MW per year.
Several experts are wondering whether Solel should remain in the manufacturing and selling technology business or is it the right track for them to go on selling electricity.
We admire Solel’s management decision to brace themselves and take root of selling electricity. This is where the big bucks are. But don’t they need to be vertically integrated and join forces with strategic partners that are experienced in the electric power business? Will the 105USD investment be enough?
Fortune favor the brave – so we wish Solel to succeed in pushing the envelop!
In another post we’ll further discuss this field, including other companies that are in the lime light and secured investments, like Luz2, eSolar and EDIG, that are pursuing solar power systems that use mirrors smaller and cheaper than conventional models, advanced control systems, and several thermal receiver towers, each with a field of heliostat mirrors, and a central power block with turbine and generator. Such designs take advantage of mass manufactured components, while the repetition of modules provides redundancy in the system, so that if one module goes off line, power continues to be generated by the other modules in the plant.
The competition between the trough and tower receivers is getting hotter, while the installed costs are in the same range of 3500 to 4000USD/Kw. On the other hand trough smallest module consist of 50MW and towers’ of 25MW, although trough are already on a sound footing and the enhanced tower receivers did not receive the vote of confidence (yet).
