Techno-economic assessment of future perspectives of the concentrated solar power plant in Mongolia

Authors

  • Tumenjargal Makhbal M.S. Student, School of Renewable Energy Technology, Naresuan University, Phitsanulok 65000, Thailand
  • Sukruedee Sukchai School of Renewable Energy Technology, Naresuan University, Phitsanulok 65000, Thailand
  • Prapita Thanarak School of Renewable Energy Technology, Naresuan University, Phitsanulok 65000, Thailand

Keywords:

solar thermal power plant, direct normal irradiance, parabolic trough CSP, economic assessment

Abstract

This research presents a techno-economic assessment of future possibilities for the concentrated solar power plants in Mongolia. The study uses data collection and analysis to evaluate the economic, environmental and technical aspects of parabolic trough CSP plant in Mongolia. The cities of Sainshand and Dalanzadgad were cited as examples to assess the direct normal irradiation, land availability, water resources, grid connectivity and infrastructure. The technical evaluation result shows that both sites would be suitable for installation of the Parabolic Trough Concentrated Solar Power plant in the Gobi Desert of Mongolia.

The economic evaluation was investigated by comparing two different power plant models, the first being a 5 MW off-grid CSP plant, and the second a grid connected CSP plant with identical capacities. Both plants would also receive similar Feed-in tariff (FIT) and Tax Incentive. Research showed that both CSP projects would not be economically viable with a borrowing cost of 8 % interest rate and with a project investment of 13.7 to 13.9 million Euros. The government announced to investors that under its FIT policy would provide a maximum FIT of € 0.14/kWh, the results from this research showed that the net present value (NPV) of CSP power plants is 12.7 million Euro while the benefit cost ratio (BCR) is 1.35 to 1.38. It is also indicates that internal rate return (IRR) is between 6.8 to 7.04 % with a payback period of around 8 years. The conclusion of this research is that the Mongolian Government should accept the current structure while also accepting new term similar to the “Adder”, subsidy scheme currently used in Thailand. This will equal the regular consumer energy price plus FIT. However, the Government should carefully consider the financial model before the Government offers the new subsidy policy to the entrepreneurs of the CSP projects. If the Government revised its Renewable Energy Law by adding this new policy, both on and off grid projects would be economically viable at borrowing rates no greater than 8 % including FIT and Tax Incentives.

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How to Cite

Makhbal, T., Sukchai, S., & Thanarak, P. (2014). Techno-economic assessment of future perspectives of the concentrated solar power plant in Mongolia. Journal of Renewable Energy and Smart Grid Technology, 7(2), 17–30. Retrieved from https://ph01.tci-thaijo.org/index.php/RAST/article/view/26227