1. Seawater Desalination and the Environment September - 15 th, 2010 September 14 th - 15 th, 2010 New Exhibition Center, Munich Sustainable CSP desalination in the Mediterranean Countries: the main results of the MED-CSD project DME S-006-2010 – Lecture 00 1

2. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-2 Overview Electricity and water supply scenarios in MENA Why CSP and desalination? CSP and desalination technology overview Selected plant configurations Technical performance model Financial model Conclusions

3. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-3 Water supply scenario in MENA It is essential to start a paradigm change now! Potential Water deficit (Source: AQUA-CSP)

4. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-4 Water deficit scenario by country Dramatic water deficit in Egypt (ca. 1 Nile River!) Country Water deficit [Bm 3 /y] Egypt51.35 Libya5.82 Syria5.22 Jordan0.66 Israel0.39 (Source: OME)

5. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-5 Gross electricity demand by country CountryGross electricity demand [TWh/y] Turkey660.60 Egypt586.55 Algeria304.69 Morocco150.80 Syria134.17 (Source: OME)

6. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-6 Looking for sustainable solutions… why CSP? High solar irradiation is the cause of water scarcity  Idea: use solar radiation to produce sustainable electricity and water Option of thermal energy storage (TES)  high operation flexibility, dispatchability Hybrid operation, no “shadow”-power-plant required  Security of supply Waste heat from the turbine and produced electricity can be used to drive thermal or mechanical desalination

7. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-7 Overview on CSP technologies Parabolic trough (Solar Millennium) Linear Fresnel (Novatec) Solar Tower (Abengoa) Dish (DLR)

8. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-8 Comparison of CSP technologies (Source: DLR)

9. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-9 Options for heat storage Molten Salt (ACS Cobra) Concrete (Züblin, DLR) Steam accumulator (Abengoa Solar) PCM (DLR) Water Tank (Kuckelhorn)

10. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-10 Comparison of heat storage technologies (Source: DLR)

11. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-11 Overview on desalination technologies Multi Effect Distillation (Entropie) Reverse Osmosis (DME) (INVEN)

12. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-12 CSP-MED configuration Solar field Thermal Energy storage Power block Cooling and Desalination unit

13. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-13 CSP-RO configuration Cooling unit Desalination unit

14. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-14 Preliminary considerations (Source: DLR)

15. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-15 Site selection Source: DLR, kernenergien 10 locations, 4 configurations, 2 DNI models  80 cases!

16. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-16 Technical model Site and configuration definition, input data collection Yearly simulation with INSEL v8 and result analysis Ambient temperature Direct normal irradiation Wind velocity Water demand Electricity demand Output file Plant configuration Site coordinates

17. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-17 Summer/winter comparison: In summer the day is longer and the storage can be charged by day, allowing bridging the night almost without fossil fuel consumption In winter the day is shorter and the low sun elevation causes large efficiency losses. The storage can not be completely charged

18. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-18 Main results of the technical model Hybrid rate varies between ca 25% and 50% in function of available solar resources and in minor measure of plant configuration Seawater salinity affects the internal electrical consumption of the RO  influence on the size of solar field and turbine The cooling system in the RO case is a dry-cooling; the design ambient temperature plays a very important role The MED has a quite stable behaviour, due to the presence of the hot water tank

19. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-19 Financial models 2 financing options (Source: EIB) Corporate (or promoter) finance Financing partners provide funding to the promoter (a company, a consortium of companies or an institution) The cash flows are discounted with the WACC Project finance The project is realized and financed via a standalone project company The equity cash flows are dis- counted with the required rate of return on equity (private investor's point of view)

20. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-20 Main results of the financial model Source: EDF, kernenergien

21. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-21 Main results of the financial model Assuming the private investor's point of view (the “realistic” point of view), none of the analysed configuration is economically feasible (NPV<0)  Adequate feed-in tariff or a grant is necessary In Italy, where existing Feed-in-Tariffs are assumed in the model, just a small grant is required Private investors require high revenues in risky countries like Palestine and Egypt (up to 20 %)  This is an obstacle for the project profitability also in locations with an excellent solar irradiation like Safaga (EGY2). The sensitivity analysis shows that TPC and amount of produced electricity leads to a higher impact on the NPV than a variation of fuel prices or O&M costs

22. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-22 Main results of the financial model - 2 With the given assumptions, the Linear Fresnel Reflector is the more profitable technology. However, the LFR is not as mature as the parabolic trough (2 MW Linear Fresnel installed, 30 MW under construction). The RO presents lower investment cost in comparison to the MED (however this difference is softened by the membrane replacement cost of the RO) and in the selected locations the LFR-RO configuration is the cheapest option

23. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-23 Outlook Water management and water saving measures should be taken as soon as possible. However, new water resources have to be tapped in order to meet the increasing water demand in the MENA countries Concentrating solar multi-purpose plants could generate solar electricity for domestic use and export, drinking water from desalination and shade for agriculture and other human activities

24. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-24 Outlook - 2 CSP and desalination are proven technologies, the financial feasibility depends on available resources and economic boundary conditions. Tailor-made feed-in tariffs can open the market for the development of CSP-DES plants, thus producing scale effects and driving the investment cost down First pilot and demonstration plants will show the attractiveness of this sustainable solution

25. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-25 Thank you!

26. Massimo Moser DLR DME S-006-2010 – Lecture 00 Seawater Desalination 00-26 Nicht-exklusives Copyright DME erwirbt mit der Annahme Ihres Fachbeitrags auch das nicht- exklusive Copyright, insbesondere bezüglich der Veröffentlichung in den Seminarunterlagen. Die Veröffentlichung Ihres Fachbeitrags, auch auszugsweise, an anderer Stelle ist Ihnen freigestellt, wobei wir er- warten, dass Sie darauf hinweisen, dass es sich um einen Fachbeitrag des DME Seminars S-006-2010 in München handelt. Non-exclusive Copyright By reveiving your presentation DME aquires the non-exclusive copyright, especially in view of publishing it in the seminar documentation. You are free in publishing your presentation – even part of it – elsewhere, but we expect that you mention that this presentation has been held on the DME Seminar S-006-2010 in Munic.