Potential economic value of integrating concentrating solar power into power grids

Increasingly, climate neutrality is becoming a consensus among many countries. While this can motivate toward higher proportions of renewable energy, it can also result in significant increases in the volatility of power systems. Concentrating solar power (CSP) combines the features of zero-emissions and dispatching capability, rendering it an ideal technology for sustainable power systems. In comparison with other clean energy generation technologies, CSP remains expensive with a levelized cost of energy (LCOE) of 0.184 $/kWh in 2018. However, in addition to LCOE, the benefits of integrating CSP for the entire power system are worth considering for a liberalized electricity market. This paper presents the development of a multistage stochastic programming model, in which the uncertainty of variable renewable energy is indicated by a modified scenario tree approach. A case study is demonstrated based on three provinces in China with different generation structures. The results demonstrate the economic value of CSP integration, which increases its investment potential—especially when combined with more variable renewables.