CSIRO will lead a new solar research initiative worth more than $87 million.
The eight year collaboration will form the Australian solar thermal research initiative, which aims to lower the cost of solar thermal power from 25 to around 10 cents a kilowatt an hour.
CSIRO will partner with six Australian universities and the United States’ Department of Energy’s National Renewable Energy Laboratory (NREL), Sandia Corporation and Arizona State University with the goal of creating solar technology to supply cheap, zero emission, secure energy for Australia, and the world.
The Australian Solar Institute and Australian Renewable Energy Agency’s $35 million contribution made the initiative possible and ensures Australia remains at the leading edge of global solar research.
CSIRO’s Energy Transformed Flagship Director, Dr Alex Wonhas, said the funding provides CSIRO with the opportunity to work with the world’s best and fully develop solar thermal technology.
“A world-class collaboration of this scale ensures we are well on our way to lower the cost of solar thermal technology," Dr Wonhas said.
“Demonstrating the technology is vital, it is what attracts investment and development in the industry."
CSIRO’s university partners for the solar thermal research initiative include the Australian National University, University of Queensland, the University of Adelaide, University of South Australia, Queensland University of Technology and Flinders University.
Solar thermal power uses mirrors to concentrate sunshine to generate heat, which then powers a turbine to create electricity or solar derived fuel. CSIRO’s solar thermal tower at Newcastle is an example of the technology (see image).
Also announced is a CSIRO-led United States-Australia solar energy collaboration which boasts solar projects worth over $14 million, the most significant being the creation of a $7.6 million solar forecasting system.
The solar industry is reeling from overcapacity and supply outstrips demand by two to one.
It needs to drive costs lower in order to overcome diminished subsidies and regain profitability, according to Lux Research.
Globally, module prices have fallen precipitously over the past four years to a low of $0.70/W but the cost of goods sold (COGS) for modules has not reached this level, resulting in massive losses for most module manufacturers.
“With pressure from competitors, customers, and policy-makers to drop prices even further, manufacturers need to drive costs down to survive and thrive during the coming years of growth in the demand market,” according to Ed Cahill, Lux Research Associate and the lead author of the report titled, “Module Cost Structure Update: Path to Profitability.”
Lux Research conducted a cost and sensitivity analysis, examining the impacts of drivers like low-cost manufacturing locations, high efficiency, increased capacity utilization, and higher production yields on module COGS.
