Economic analysis of power generation from floating solar chimney power plant

Solar chimney thermal power technology that has a long life span is a promising large-scale solar power generating technology. This paper performs economic analysis of power generation from floating solar chimney power plant (FSCPP) by analyzing cash flows during the whole service period of a 100 MW plant. Cash flows are influenced by many factors including investment, operation and maintenance cost, life span, payback period, inflation rate, minimum attractive rate of return, non-returnable subsidy rate, interest rate of loans, sale price of electricity, income tax rate and whether additional revenue generated by carbon credits is included or not. Financial incentives and additional revenue generated by carbon credits can accelerate the development of the FSCPP. Sensitivity analysis to examine the effects of the factors on cash flows of a 100 MW FSCPP is performed in detail. The results show that the minimum price for obtaining minimum attractive rate of return (MARR) of 8% reaches 0.83 yuan (kWh)-1 under financial incentives including loans at a low interest rate of 2% and free income tax. Comparisons of economics of the FSCPP and reinforced concrete solar chimney power plant or solar photovoltaic plant are also performed by analyzing their cash flows. It is concluded that FSCPP is in reality more economical than reinforced concrete solar chimney power plant (RCSCPP) or solar photovoltaic plant (SPVP) with the same power capacity. (author)