Fraunhofer Institute for Solar Energy Systems ISEPress Release #18
New Study by Fraunhofer ISE: Solar Thermal Energy Reduces Process Heat Costs for Industry
Interest in renewable energies is also growing in industry. The reasons are price fluctuations in fossil energy sources, foreseeably rising CO₂ costs, and supply risks due to increasing geopolitical tensions. Investments in solar thermal systems are more economical in many cases than operating purely fossil-fuel-based systems for generating process heat. This conclusion is drawn from a study published today by the Fraunhofer Institute for Solar Energy Systems ISE.
The researchers at Fraunhofer ISE examined the yields and economic viability of solar process heat compared to conventional industrial heat supply. “Our study shows that solar thermal energy is economically viable and well-planned for numerous process heat applications in the German industry. It is suitable for low-temperature applications as well as for medium temperatures, such as those needed in the chemical industry,” explains Prof. Dr. Hans-Martin Henning, director of Fraunhofer ISE.
The study concludes that investments in solar thermal energy are more economical than fossil fuel supply in all examined scenarios and solar coverage rates in the considered range (0 to 50 percent). The payback periods for solar thermal systems range from three to eight years, depending on the scenario, location, and temperature range—provided that an investment grant is utilized through the Federal Funding for Energy and Resource Efficiency in Business (EEW). For example, at the Würzburg location, the investment in a 34-megawatt parabolic trough system with a 20 full-load hours storage pays off in 5.5 years. At the same time, it leads to savings over the lifetime (20 years) of over 40 million euros. Discounted to today's value, this results in savings of around 25 million euros, considering the investment of 12.6 million euros.
Carsten Körnig, CEO of BSW-Solar, comments on the results: 'Solar thermal energy is a viable and competitive solution for industrial heat supply in Germany. The unfortunately still widespread assumption that solar thermal energy is uneconomical in temperate regions has been disproven. Rather, the Fraunhofer study confirms that optimized system design and targeted funding measures can significantly improve economic viability.'
Industrial process heat accounts for a significant part of the total energy demand in Germany and is currently predominantly supplied by fossil fuels, especially natural gas. With temperatures of up to 400 °C, solar thermal energy is an important CO2-free option to supply significant portions of the industry with heat.
The study is based on dynamic system simulations and considers various site-specific solar radiation values, collector technologies, temperature ranges, and the integration of heat storage in over 6,000 simulated system configurations. Real and predicted natural gas prices, CO₂ charges, and existing funding instruments were also taken into account.
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