Guest Post by Willis Eschenbach
The BBC, that bastion of slanted reportage on all things green, has an article about a new solar power plant entitled “The Colossal African Solar Plant That Could Power Europe“. It’s full of all kinds of interesting information about the plant, located in Ouarzazate, Morocco. Man, how come Africa gets all the great place names, that one just reeks of mystery, “Ouar-za-za-te”, makes me want to go visit … but I digress. It’s called the “Noor” power plant, from the Arabic word for “light”.
The reporter talks about a variety of things, including the fact that on the day the reporter visited it was overcast … but somehow, despite hyperventilating about just how awesome and gosh-dang wonderful the plant is and the difference this will make to the planet, the reporter never got around to talking about the cost. Funny, that.
Being a congenial sort of fellow, at least on a good day with a following wind, I figured I’d give them a hand. The relevant numbers are available at the Wikipedia page—the plant cost $3.9 billion dollars US ($3.9E+9, much of it a gift from hard-pressed European taxpayers diverted by guilty CO2-obsessed European liberals), and it produces 370 gigawatt-hours per year (370E+9 watt-hrs).
Now, in the US a power plant typically sells its product for something like six cents US per kilowatt-hour. Multiplying that by 370 GWhr/year gives us an annual value of the energy produced of about $22,000,000 dollars per year.
And at twenty-two mega-bucks per year, how long will it take to pay back the $3.9 billion dollar cost of the plant?
Er … um … breakeven time is a hundred and seventy-seven years … but only if there are zero maintenance costs … and if there is no interest on any borrowed funds … and if you don’t count avoided income available from investing the four giga-bucks elsewhere for a century … ooogh.
However, I do note that on the Wikipedia page it says that they are selling the electricity wholesale at US$ 0.19 per kilowatt-hour. Not good news for poor people in Morocco. This brings the breakeven time down to a mere fifty-six years … again if there are no maintenance costs, no interest costs, and no avoided income.
You know, people keep selling these plants on the basis of saving the world, but at that horrendous cost and huge breakeven time, I’m not sure we can afford to keep saving the poor thing time after time …
Further research, however, elucidates the conundrum. It turns out that this is not just an energy generation plant. It’s a moral lesson for the world and a harbinger of the future and will save CO2 and serve as a template for really big money wasting projects and … hang on, that’s my interpretation. Let me get the actual claims, curiously from a Freedom of Information Act document. To start with, it says:
Both cost-effectiveness analysis and cost-benefit analysis indicate that the project is not economically justified under prevailing economic conditions.
Ya think???
However, the plant is supposed to provide the following intangible benefits:
- Climate change mitigation
- Increase in factors of production (physical capital, human capital, and natural capital)
- Accelerated innovation, through correction of market failures in knowledge
- Enhanced efficiency, through correction of non-environmental market failures
- Increased resilience to natural disasters, commodity price volatility, and economic crises
- Job creation and poverty reduction
My favorite? “Correction of non-environmental market failures”. That’s got to be worth big bucks.
So all you have to do is to put numbers on those intangibles, make the values large enough, and suddenly this money-losing proposition will be ready to “power Europe” … at three times the market cost of electricity … not counting significant transmission costs … as soon as the multibillion dollar high voltage high ampacity DC undersea power cable gets funded and designed and laid across the Mediterranean from Morocco to Europe …
Another beautiful green dream ship wrecked on a reef of hard economics. It least it seems no US taxpayer money is going into this debacle. That’s good news, because we need it to line Elon Musk’s pockets …
w.
Por favor, if you disagree with someone please QUOTE THE EXACT WORDS YOU DISAGREE WITH. I can defend my own words, but only if I know which ones you are referring to.

The nickname of the city of Ouarzazate is ‘door to the desert’. A desert lies just to the south. Welcome to the Moroccan desert.
&f=1
Yeah, that’s a sandstorm.
How well do solar panels hold up to wind blown sand, and how much electricity do they produce after a sandstorm?
..or, during?
I know this is wrong on so many levels, but: if there were a nice volcanic outbreak now-now, that dims the sun for a few months or so, that would put an end to this nonsense, because people would ask themselves why they keep shutting down nuclear power and build inherently unreliable solar…
Once in a while we get a thin covering of bright Sahara sand on our cars here in UK, so I don’t hold out much hope for solar panels actually in the Sahara.
http://www.metoffice.gov.uk/learning/learn-about-the-weather/weather-phenomena/sahara-dust
Met Office so it must be true.
Gee.. If it only worked at night…
Solar PV electrical generation should ALWAYS be gathered at the point of use. NEVER centrally generated. Even then, the economics are still very shaky.
I reside in a nuclear(30 to 40 year old mature plants) electrical generation dominant area with a sprinkling of wind for show. Real time hourly energy rates usually hover around $0.03/kW-hr with the final energy portion to around $0.05/kW-hr. Adding in transmission, delivery, taxes, etc. brings the final bill to about $0.13 to $0.14/kW-hr.
https://en.wikipedia.org/wiki/Hinkley_Point_C_nuclear_power_station#Cost_to_consumers
New Hinkely Point Nuke ( assuming they ever manage to build one of these reactors ) is currently supposed to 18bn GBP . Count on a ten year over-run and costs doubling that in view of the Flamandville and Finnish fiascos where they have been attempting to build the same design for the last decade.
Wholesale ‘strike price’ has been agreed at twice the current market value : £95 per MWh as opposed to £45. That is index linked for the next 60 years.
Bottom line consumer gets screwed whatever the technology chose. Don’t be fooled into thinking this has something to do with solar.
oh..I thought the Saudis had pulled out of this project sometime back? Forgot about the EU twots…so I paid toward it in UK. Thats along with roads to nowhere, race tracks that don’t race and airports that don’t errumm…air – port….in Europe. And there’s more I know!
Nice post. I think question #21 was meant to be “Section 1222”. Not “Sec 1221”. 1221 is dead but Section 1222, the Department of Energy and Plains & Eastern Clean Line, now that’s a scandal waiting to explode.
The DoE is “partnering” with a private company to provide the hammer of eminent domain to create a 750 mile powerline from Oklahoma to Tennessee for “clean” wind energy. The TVA doesn’t even want or need the energy but the DoE is determined to take the land with eminent domain. Interestingly, the DoE is get a royalty, tax, or kickback from the company for providing the eminent domain. The landowners get “fair market value” for their property.
The #2 guy at Plains and Eastern Clean Line worked for the DoE in the Bush Administration when Section 1222 was created and his company is the only company to use this law since the Energy Policy Act was passed. He was the DoE man for transmission then and the benefactor of the law now. The DoE is indeed a swamp that needs draining.
I’m hearing there is a different version of the DoE Questionnaire. Questions 57 and 58 also pertaining to Section 1222. Section 1221 was killed in the courts as unconstitutional.
Norway and Germany are using a similar sum just on 140000T of copper cable to connect Norwegian hydroelectric with German wind and solar. Norwegian electricity prices will go up once it is operating but at least the green battery of Europe will be connected!
How much water will this plant consume per year keeping it clean?
the plant cost $3.9 billion dollars US ($3.9E+9, much of it a gift from hard-pressed European taxpayers diverted by guilty CO2-obsessed European liberals), and it produces 370 gigawatt-hours per year
Solar energy is expensive, but $3.9 billion dollars US for 370 gigawatt-hours seems so far off that I had to check, and as far as I can see, Wikipedia is wrong here.
First some facts:
Noor Power Station is being built in four phases
Noor 1: 160 MW nameplate capacity, expected annual generation 370 GWh
Noor 2: 200 MW nameplate capacity, expected annual generation 600 GWH
Noor 3: 150 MW nameplate capacity, expected annual generation 500 GWH/Year
Noor 4: Photovolatic with 80 MW nameplate capacity, no expected annual generation given.
Fortune.com writes about the project
“Once completed, Noor will cost 2.2 billion euros ($2.45 billion) and generate 580 MW.”
That means Fortune estimate 2.45 billion USD for all four phases while Wikipedia claims that the number is 3.9 billion for just phase 1.
One of them has to be wrong, and Wikipedia is the most likely culprit.
Wikipedia link to an article in The Guardian as a reference. The article in The Guardian does indeed present the number 3.9 billion, but it is not clear from the article whether this is limited to just one phase, or to the entire power plant. The most plausible explanation is that Wikipedia is wrong here.
/Jan
Solar energy is expensive, but $3.9 billion dollars US for 370 gigawatt-hours seems so far off that I had to check, and as far as I can see, Wikipedia is wrong here.
First some facts:
Noor Power Station is being built in four phases
Noor 1: 160 MW nameplate capacity, expected annual generation 370 GWh
Noor 2: 200 MW nameplate capacity, expected annual generation 600 GWH
Noor 3: 150 MW nameplate capacity, expected annual generation 500 GWH/Year
Noor 4: Photovolatic with 80 MW nameplate capacity, no expected annual generation given.
Fortune.com writes about the project
“Once completed, Noor will cost 2.2 billion euros ($2.45 billion) and generate 580 MW.”
That means Fortune estimate 2.45 billion USD for all four phases while Wikipedia claims that the number is 3.9 billion for just phase 1.
One of them has to be wrong, and Wikipedia is the most likely culprit.
Wikipedia link to an article in The Guardian as a reference. The article in The Guardian does indeed present the number 3.9 billion, but it is not clear from the article whether this is limited to just one phase, or to the entire power plant. The most plausible explanation is that Wikipedia is wrong here.
/Jan
Nevertheless, Fortune writes that this include other regions in Morocco with at total effect of almost four times the total Noor Power plant:
Wikipedias reference for the 9 billion figure is the same Guardian article.
/Jan
Willis-
Thanks for another interesting post.
I think Jan is correct that the costs you quoted may not reliable.
I found another source (that covers all types of power generation projects) with cost details here-
http://www.power-technology.com/projects/noor-ouarzazate-solar-complex/
Noor Ouarzazate Solar Complex, Morocco
“Phase one of the project involved the construction of a 160MW concentrated solar power (CSP) plant named Noor I, while phase two involves the construction of the 200MW Noor II CSP plant and the 150MW Noor III CSP plant, and Phase Three will involve the construction of the Noor IV CSP plant.”
“The overall investment for Phase One is estimated to reach €500m ($537m approximately).”
“The overall investment for Phase Two is estimated to reach $2bn,…”
So, Phase I provides 160MW nameplate for $537M, or $3.35/Wpk.
Phase II provides 350MW nameplate for $2000M, or $5.70/Wpk.
Strange that the larger Phase II costs more per Watt (peak) than the smaller Phase I.
I think these costs are closer to reality. However, they are listed as ‘estimates,’ so actual totals will likely be higher.
The estimated total energy delivered of 370 GWhr per year from the Phase I array of 160 MW assumes 6.5 hours/day at full output power. This seems optimistic.
Jan, always good to hear from you, and even better that you check the numbers. You say:
I find a variety of numbers for the cost ranging from one to four billion … but what I don’t find is any real disagreement on delivered cost, at near to twenty cents per kilowatt.
If we assume that the cost is only a quarter of what Wiki says, then the 177-year payout with no O&M costs, no interest costs, no wheeling costs, and no avoided income drops to a mere forty-five years or so … be still my beating heart.
Regards,
w.
Hey Willis. It might be a good idea to contact them and get some more information about costs. As it stands now your article is making claims about the time to repay the investment that seems very unlikely to be true.
[Philip, Your claim of “very unlikely” stems from nothing other than opinion; pot,kettle. Do the work yourself if you want to make a valid point. Otherwise it’s just noise. -Anthony]
Philip Schaeffer December 13, 2016 at 5:11 pm
Mmmm … well, the analysis I quoted above says quite clearly that Noor 1 is NOT a money-maker, viz:
Next, it is extremely rare for a feel-good solar project to come anywhere near its posted claims … you are welcome to seek the promoters out and ask their opinion and believe their numbers.
Me, not so much. That’s like asking your barber if you need a haircut …
w.
Willis said:
“Mmmm … well, the analysis I quoted above says quite clearly that Noor 1 is NOT a money-maker, viz:”
“Next, it is extremely rare for a feel-good solar project to come anywhere near its posted claims … you are welcome to seek the promoters out and ask their opinion and believe their numbers.
Me, not so much. That’s like asking your barber if you need a haircut …
w.”
I never said anything about that. I just questioned your calculations on time to pay back the construction costs, using 3.9 billion as the cost, and 370 GWhr/year power production. Do you still believe the cost of the first phase to be 3.9 billion? It seems to me that you should substitute 537 million for your 3.9 billion figure in your calculations.
What say you?
Anthony said:
“Philip, Your claim of “very unlikely” stems from nothing other than opinion; pot,kettle. Do the work yourself if you want to make a valid point. Otherwise it’s just noise. -Anthony”
Well, if I had written the article, and someone said to me “hey, those figures look so far off that I’m pretty sure something has gotten mixed up”, I like to think I’d go and ask a primary source so that I could correct myself if I was indeed wrong, especially when, as a appears to be the case here, that there is confusion amongst the tertiary sources being used.
Higher in the thread Piper Paul says “they ‘ ll put it in a greenhouse” to protect it from sandstorms.
Early in my climate change journey, I remember suggesting my former employer look at this type of solar power because of oil and gas installations in Algeria, Libya, Egypt. Keeping the installation clean and transmission costs were then, as now, the big problems.
However, there is a company doing exactly what PP suggests: Glasspoint solar has small solar plants which are suitable for powering oil and gas fields in the desert. They put the whole thing inside a greenhouse which is Victorian age technology, but potentially useful in this case. It obviates the problem for cleaning mirrors, and cleaning greenhouse walls and roofs is much easier. Secondly, it means that the mirrors which reflect sunlight on to a central water-filled tube, do not have to be strong enough to withstand wind. Apparently this cuts their cost significantly, (they can be gossamer thin), and the cost of moving them to properly reflect the sun as it moves through the sky during the day, is also reduced.
I know they have installations for PDO (Shell Total Partex Oman government JV) in Oman.
Update on that. Apparently, the steam generated is not used to generate electricity, but rather for injection in enhanced oil recovery (EOR) schemes.
And the Eurocrats are ever so pleased with themselves, built a new office block for themselves.
http://www.bbc.co.uk/news/world-europe-38268659
A snip at 321Mega-Euros I’m (not) sure.
As usual, am struggling here but cannot see my fault.
I wonder why they need all these mirrors, boiling oil, pipework, melted salt, heliostats etc. Not much to go wrong there is there, certainly not in a desert miles from anywhere. I digress,
Why don’t they use the well understood Green House Gas Effect? Is this not where long wavelength (low energy photons) from The Surface of the Earth – sometimes referred to as ‘dirt’) impinge upon Green House Gas Molecules and cause them to assume a higher temperature than they previously were?
btw, contrary to first impression, it is NOT what goes on in the microwave oven in your kitchen.
Then, all they’d need are a few tanks/gas-bags or stores of some sort, filled with Green House Gas. The long wave photons coming off the desert would warm the tanks of Green House Gas – and the rest is easy. People like Carnot, Stirling, Rankine etc had it all sorted.
And the great thing is, even deserts don’t get as cold as zero Kelvin overnight so this thing would work All The Time. Even at night.
What’s not like to like…………..
We live in an insane world ruled by insane people. Time to drain the swamp.
Benefit: Job creation.
Jobs are a cost, i.e., a negative, not a benefit.
Unfortunately, most of the so-called educated classes around the world are economically illiterate.
Willis writes
Trifling when compared to other US debacle money…
https://www.washingtonpost.com/investigations/pentagon-buries-evidence-of-125-billion-in-bureaucratic-waste/2016/12/05/e0668c76-9af6-11e6-a0ed-ab0774c1eaa5_story.html?utm_term=.3848af84578a
I’ve been to Ouarzazate, Willis
It’s a dump!
“Accelerated innovation, through correction of market failures in knowledge”
You know it’s going to be a massive market failure but you need to make sure about that knowledge? I think these people have confused accelerated innovation with depreciation but it’s got me beat- where’s the tax saving angle?
And then there’s this stuff –
I believe that solar panels these days have a lifespan that is rather hard to define. They lose output capacity as the years roll by. I seem to remember 80% capacity at around the 20 year mark. I doubt that one would want to keep them much beyond 25 years because of loss of capacity. Maximum stated output capacity (nameplate) (at high noon, no clouds or smog, not hot temps on panels) is never equal to actual capacity, due to a variety of reasons. As I recall, a 6KW solar roof never outputs more than 5KW, often around 4.5 KW at its maximum (high noon). A molten salt nuclear reactor can easily produce power at less than 3 cents per kWhr (no fuel costs, few workers required, no pressures in the reactor much above atmospheric pressure, no need to shutdown for refueling, giving it a capacity 100% of its nameplate capacity [ verses around 20% of nameplate capacity for a solar panel] can be located in cities, very close to ultimate users as small or large modular reactors). Lifespan of the molten salt reactor depends upon the design, some probably in excess of 80 years, others about the same as curtrent light water conventional nuclear reactors – about 60+ years. Cost of construction of a molten salt reactors varies with design – most expensive design will cost about two thirds the cost of a conventional nuclear reactor or about $3 billion per GW [1000MW], cheaper Moltex design probably less than half(around $2 billion) but with somewhat higher maintenance costs because the design requires sacrificial reactor walls that needs replacement about every 6 years.
I’m uncertain how many times the solar panels will need replacement (often due to loss of capacity) during the lifespan of either type of molten salt reactor, but it will be “more than several” I believe.
But comparing the cost of solar panels to 24/7 power production technologies is absurd – they are in no way comparable. Unreliable power (from wind/solar) is ALWAYS much less valuable because of its very nature, which requires duplicative power capacity on the grid, up and running and ready to go when the unreliable capacity is reduced (winds dies down, or gets too strong for the turbine to handle, or clouds roll over solar panels, or the sun goes down or loses its irradiance due to time of day, etc) . This is happening right now in the midwest, where utilities are buying significant amounts of wind power and buying much less from nuclear plants Conventional nuclear plants are designed as baseload plants, running 24/7 at virtually 100% capacity. They cannot ramp up and down quickly
and when all of their power is not bought by the utility, their cost per kWhr produced is increased almost directly proportional to the loss of sales – i.e. a 50% reduction in sales leads to twice the production costs of a kWhr. They cannot reduce fuel costs to any extent becasue 1) fuel for a reactor is cheap – 3/4th of a cent per kWhr 2) they cannot ramp up and down to enjoy an fuel reductions. Nuclear operators have threatened to shut down some of their under-used reactors because of the losses they have sustained for the past several years due to lost sales – this threat has teeth, because that would leave the midwestern utilities with insufficient 24/7 capacity and lead to power blackouts. So the midwestern utilities now wlil have to pay the nuclear operators much higher prices for their reduced output in order that the nuclear plants can stop their losses and keep operating. That means higher utility bills for the consumer. The cost of unreliable power can only be calculated by taking account of all of the costs that using such power entail for a grid that requires 24/7 power availability.
That AWAYS means duplicative capacity and that would be true even if every renewable provider had significant storage capacity (which would increase their costs signficantly) – storage capacity merely stores power – it cannot produce power and loss of wind or sun irradiance is not limited to 24 or 48 hours, or whatever length of time can be supplied by stored energy. And after that loss of stored energy, the renewable capacity is reduced during the period that exhausted or drained storage capacity needs to be restored.
The whole problem here is that the sun only shines part of the day, and varies enormously in its enegy depending upon the time of day and atmospheric conditions. So solar power is not reliaible and even has an actual output capacity that varies when the sun is shining. Worst of all possible energy worlds, one might say.
Solar and wind will never be competitive with the new nuclear technology of molten salt reactors.
No matter how one views the issue – cost, carbon reduction, safety , side benefits (land use, reduction of nuclear wastes to a “No concern” state) and side penalties (bird/bat killings) molten salt reactors are far and away superior to renewable power providers, regardless of what those renewable providers might do in the way of energy storage, increases in solar panel efficiencies, etc. Renewables are inextricably tied to energy sources which are incapable of meeting the needs of an electric grid.
Slightly OT – the beeb are reporting a prototype in Manchester UK of a cryogenic system for storing energy from intermittent renewables, by cooling air to liquid; then re-gasifying it to drive a turbine:
http://www.bbc.com/news/science-environment-37902773
It looks interesting technically, although efficiency could be an issue.
Any comments on cryogenic storage? Could this be a grid-scale storage solution? It’s been kicking around a while and hasn’t set the earth on fire so there must be some hidden drawbacks I guess.
The company has run 2 pilot projects and this is the first commercial deployment, I believe…
http://www.highview-power.com/projects/
A large Tesla grid storage scheme opened at a solar plant in Somerset this week – first of these to be deployed in UK/Europe
https://www.gov.uk/government/news/teslas-first-large-scale-electricity-storage-facility-in-europe-officially-opened-by-energy-minister
UK National grid has accepted a number of bids for grid storage projects this summer
http://www.powerengineeringint.com/articles/2016/08/national-grid-accepts-eight-bids-for-battery-storage-contracts.html
I believe UK now has 3GW of grid connected storage mostly installed in the last 5 years
Thanks, we’ll see in the next decade how grid storage works out.
Where does the energy come from to compress air to liquid? Remember conservation of energy?
I believe it’s cooling, not compression. From electricity I guess.
Nope! Cooling just makes it cold. To turn air into liquid, you have to compress it.
o/t Ouarzazate is a famous studio lot. A lot of films are made there. Gladiator, Jewel of the Nile, some of the Indian Jones movies and on an on. Cheap mob actors and such but the main attraction is that it will be clear and sunny almost everyday and that is important when making films.
Less than half the “nameplate capacity” of a single SMR which doesn’t care if the sun don’t shine .
There are no SMR operating or under construction.
Why is this solar plant so expensive. India built a 648MW solar plant for$679 Million dollars. Maybe they could supply Europe with cheap solar.