Preliminary analysis of financial strategies to enhance the feasibility of Concentrating Solar Power plants

This study evaluates the impact of financial policies on the investment cost burden of Concentrating Solar Power (CSP) technology, with the aim of justifying further research and investment to promote its market entry. Using the System Advisor Model (SAM), a simulation tool, the study assesses the cost and benefit of implementing CSP and its associated financial strategies. CSP is seen as a promising technology in the energy transition due to its ability to store energy through Thermal Energy Storage (TES), enabling continuous 24/7 clean energy production. Despite its potential, CSP has not yet gained significant market traction, primarily due to high initial investment costs that impede its development. The study investigates whether it is worthwhile to continue investing in CSP technology or if the costs are too high. It starts by examining the technology itself, comparing CSP with traditional photovoltaic systems, and focusing on its energy storage capabilities and thermodynamic cycle, including insights from the SCARABEUS project. An economic analysis follows, using SAM to assess the technical and economic feasibility of CSP. The analysis explores how to adjust financial parameters to determine the optimal balance between cost and benefit and identifies the most relevant factors influencing investment decisions. The findings suggest that while local geopolitical factors impact the effectiveness of fiscal policies, they can be an essential tool in improving the sustainability and attractiveness of CSP. The study recommends creating a linear optimization model to find the optimal combination of incentives, which could enhance CSP's viability in different geopolitical contexts, ultimately contributing to its broader adoption and success.