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Journal of Electrical and Computer Engineering
Volume 2018, Article ID 4063691, 11 pages
https://doi.org/10.1155/2018/4063691
Research Article

Cost-Benefit Analysis for the Concentrated Solar Power in China

School of Economics and Management, North China Electric Power University, Beijing 102206, China

Correspondence should be addressed to Weishang Guo; moc.qq@189081745

Received 4 January 2018; Revised 4 March 2018; Accepted 29 March 2018; Published 14 May 2018

Academic Editor: Gorazd Stumberger

Copyright © 2018 Shuxia Yang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

In 2016, the first batch of concentrated solar power (CSP) demonstration projects of China was formally approved. Due to the important impact of the cost-benefit on the investment decisions and policy-making, this paper adopted the static payback period (SP), net present value (NPV), net present value rate (NPVR), and internal rate of return (IRR) to analyze and discuss the cost-benefit of CSP demonstration plants. The results showed the following. The SP of CSP systems is relatively longer, due to high initial investment; but the cost-benefit of CSP demonstration plants as a whole is better, because of good expected incomes. Vast majority of CSP projects could gain excess returns, on the basis of meeting the profitability required by the benchmark yield of 10%. The cost-benefit of solar tower CSP technology (IRR of 12.33%) is better than that of parabolic trough CSP technology (IRR of 11.72%) and linear Fresnel CSP technology (IRR of 11.43%). The annual electricity production and initial costs have significant impacts on the cost-benefit of CSP systems; the effects of operation and maintenance costs and loan interest rate on the cost-benefit of CSP systems are relatively smaller but cannot be ignored.