Investments CSP rocking

renewables, CSP, Concentrated Solar Plant, Investment, Fossil, Chile, Abengoa

Chile Promotes Non-Conventional Renewable Energies by giving the energy plant order to Abengoa for their Concentrated Power Plant

There are more and more stories of Concentrated Solar Plant (CSP) overruling fossils. The interest on investments in Concentrated Solar Power Plant are artificially high.

In 2014 Chile wrote a tender for a large energy plant. Both fossil and renewable players were invited to subscribe.

Abengoa – one of the largest providers of CSP plants – has won the tender with a combination of PV and CSP to 11.5 cents per kWh. The kWh price is still too high because banks are still asking ‘risk’ interests for the investments. 

CSP interest on investments

The point of all renewable energy sources is that you actually buy energy time ahead, for 25 years, because virtually all costs are the investment costs. Much of the price is depending on the rate at which you can get the loans. Because CSP is still relatively young, banks consider CSP even more risky and keep interest rates artificially high.

As soon as the interest burden gets low,
or by starting calculating with a longer lifetime of the plant (a service life of 35 years instead of 25 years),
than prices will drop gigantic

Subsidies fossil energy multiples

Finally, it is still true that subsidies for fossil fuels are a multiple comparing with the subsidies to renewable energy!

Air cooling and clean water

CSP’s use a lot of water and that’s a pity. But … A plant can also be cooled by air. Than the yield is slightly lower. A benefit for air cooling plants is that it can clean water with the waste heat.


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