The energy storage capabilities of CSP make it the only dispatchable renewable energy, and allow it to compare favourably to gas-fired generation in South Africa. CSP plants already benefit from a tariff of 270% of the base rate during evening peak hours, but there is currently not an additional financial incentive for developers to match electricity demand during the morning peak.
Rajpaul comments: “There isn’t really an incentive for CSP to generate the following morning…The current Round (4) incentivizes CSP during evening peak, but we actually have two peaks in South Africa.”
The ability to respond to the morning demand peak would add to CSP’s unique value proposition as a dispatchable renewable energy, whose cost has halved since Round 1 of the REIPPP.
Read the full article here