Cost Reductions

Table 4 shows the total plant capital cost for each technology case on a $/kW/m2 basis. The technology shows a 30% cost reduction on a $/kW basis and a 55% reduction on a $/m2 basis. These cost reductions are due to: larger plants being built, increased collector production volumes, building projects in solar power park developments, and saving s through competitive bidding. In general, the per kW capital cost of power plants decreases as the size of the plan t increases. For trough plants, a 49% reduction in the power block equipment cost results by increasing the power plant size from 30 to 320 MW. The increased production volume of trough solar collectors, as a result of larger solar fields and multiple plants being built in the same year, reduces trough collector costs by 44%. Power parks allow fo r efficiencies in construction and cost reduction through competitive bidding of multiple projects. A 10% cost reduction is assumed for competitive bidding in later projects.

The annual operation and maintenance (O&M) costs for each technology are shown in Table 4. O&M costs show a reduction of almost 80%. This large cost reduction is achieved through increasing size of the power plant, increasin g the annual solar capacity factor, operating plants in a solar power park environment, and continued improvements i n O&M efficienc ies. Larger plants reduce operator labor costs because approximately the same number of people ar e required to operate a 320 MW plant as are required for a 30 MW plant. The solar power park assumes that five plants are co-located and operated by the same company resulting in a 25% O&M savings through reduced overhead an d improved labor and material efficiencies. In addition, about one third of the cost reduction is assumed to occur because of improved O&M efficiency resulting from improved plant design and O&M practices based on the results of the KJC O&M Cost Reduction Study [8].

Getting Started With Solar

Getting Started With Solar

Do we really want the one thing that gives us its resources unconditionally to suffer even more than it is suffering now? Nature, is a part of our being from the earliest human days. We respect Nature and it gives us its bounty, but in the recent past greedy money hungry corporations have made us all so destructive, so wasteful.

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