Levelized Cost of Solar Thermal System for Process Heating Applications in the Tropics

Abstract

In the ASEAN region, industrial energy demand accounts for more than a third of total energy consumption (Remap ASEAN 2015). According to the International Energy Agency (IEA), about one-third of industrial energy is required for heating applications (Renewable Heating & Cooling 2012). In general electricity and gases, which are the most common sources of energy, are utilized for commercial (e.g., hospitals, hotels, etc.) and industrial (e.g., preheating, pasteurization, evaporating, drying, distillation, etc.) heating of a fluid stream (e.g., hot water) and/or some reservoirs (e.g., liquid baths) in the temperature range of 60-150 C. Due to the year-round availability of solar energy in the selected countries, an effective utilization of the solar thermal system can provide an alternative to conventional heating systems for industrial applications in the food, beverage, pharmaceutical, chemical, textile, machinery, and pulp and paper industry (Vannoni et al. 2008). Even though this region has a good potential for the adaptation of industrial solar heating applications, very few installations have been reported except in Thailand (UNEP 2010) with a total installed capacity of about 450 KWh th. Key challenges to integrate solar heating for industries is the lack of knowledge on technical knowhow and on economic viability of implementing this technology. To demonstrate the competitiveness of such technology, it is worthwhile to compare the solar heating investment with the long-term fossil fuel price trends. Thus, this paper studies an economic assessment for implementing solar heating systems for industrial applications in the ASEAN region.