Market potential of linear Fresnel collectors for solar heat industrial process in Latin-America-A case study in Ecuador

This work evaluates the techno-economic and market potential of the linear Fresnel concentration (LFC) technology to generate mid-temperature steam for the Ecuadorian industry. By means of simulations of LFCs in System Advisor Model (SAM), the performance and the levelized cost of heat (LCOH) were calculated. The solar LCOH was compared with the LCOH generated by a traditional boiler fuelled by bunker. It was observed that LFC technology has an important technical potential to generate industrial process heat, but in Ecuador it is not economically viable in the short term due to fossil fuel subsidies and the high LFC capital cost. Additionally, sensitivity analyses were carried out varying the bunker price, the LFC capital cost and even considering a carbon tax. Results indicate that with a bunker price of 3.2 USD/gal, 40% reduction in the LFC capital cost or with a carbon tax greater than 110 USD/t CO2, LFCs for solar heat industrial process (SHIP) begins to show economic potential in Ecuador. There is a large number of industries in the branch of manufacturing of food and beverage products located in Andean regions of Ecuador that look as good candidates to implement LFC for SHIP, especially in Pichincha, Imbabura and Loja provinces. © 2020 American Institute of Physics Inc.. All rights reserved.