Indirect Solar Desalination: Value Engineering and Cost Benefit Analysis

Authors: Grace Rachid, Mutasem El-Fadel, Mahmoud Al-Hindi, Ibrahim Jamali, Daniel Abdel Nour

Abstract:

This study examines the feasibility of indirect solar desalination in oil producing countries in the Middle East and North Africa (MENA) region. It relies on value engineering (VE) and costbenefit with sensitivity analyses to identify optimal coupling configurations of desalination and solar energy technologies. A comparative return on investment was assessed as a function of water costs for varied plant capacities (25,000 to 75,000 m3/day), project lifetimes (15 to 25 years), and discount rates (5 to 15%) taking into consideration water and energy subsidies, land cost as well as environmental externalities in the form of carbon credit related to greenhouse gas (GHG) emissions reduction. The results showed reverse osmosis (RO) coupled with photovoltaic technologies (PVs) as the most promising configuration, robust across different prices for Brent oil, discount rates, as well as different project lifetimes. Environmental externalities and subsidies analysis revealed that a 16% reduction in existing subsidy on water tariffs would ensure economic viability. Additionally, while land costs affect investment attractiveness, the viability of RO coupled with PV remains possible for a land purchase cost <$ 80/m2 or a lease rate <$1/m2/yr. Beyond those rates, further subsidy lifting is required.

Keywords: Solar energy, desalination, value engineering, CBA, carbon credit, subsidies.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1107171

References:

[1] Palenzuela, P., Zaragoza, G., Alarcon, D., Blanco, J., 2011. Simulation and Evaluation of the coupling of coupling of desalination units to parabolic trough solar power plants in the Mediterranean Region, Desalination, 281, 379 – 397
[2] El-Ghonemy, A.M.K., 2012. Water desalination systems powered by renewable energy sources: Review, Renew. Sustain. Rev., 16, 1537- 1556
[3] Ghaffour, N., Missimer, T., Amy, G.L., 2013.Technical review and evaluation of the economics of water desalination: Current and future challenges for better water supply sustainability. Desalination, 309, 197- 207
[4] Shannon, M.A., Bohn, P.A., Elimelech, M., Georgiadis, J.G., Mariñas, B.J., Mayes, A.M.Science and technology for water purification in the coming decades, Nature 2008, 452, 301–310.
[5] Trieb, F., 2007. Concentrating solar power for seawater desalination, Aqua-CSP Study report, German Aerospace Center, Stuttgart, Germany
[6] Zhou, Y., Tol, R.S.J., 2005. Evaluating the costs of desalination and water transport, Water Resour. Res. 41 (W03003), 1–10.
[7] Greenlee, L.F., Lawler, D.F., Freeman, B.D., Marrot, B., Moulin, P., 2009. Reverse osmosis desalination: water sources, technology, and today´s challenges: a review, Water Res. 43, 2317–2348.
[8] Shatat, M., Worall, M., Riffat, S., 2013. Opportunities for solarwater desalination worldwide: a review. Sustain. Cities Soc., 9, 67 - 80
[9] Blanco, J., Alarcón-Padilla, D.C., Zaragoza, G., Palenzuela, P., Guillén, E., Ibarra, M., 2011. Solar energy and desalination processes: status and development perspective, Water Desalination Conference in the Arab Countries (ARWADEX), April 17–20 2011, Riyadh, Saudi Arabia.
[10] Quteishat, K., Abu-Arabi, A., 2012. Promotion of solar desalination in the MENA region,Middle East Desalination Research Center, Muscat, Oman. (Online) Available at: http://shebacss.com/rd/docs/rdresrs003.pdf (2012 20-9))
[11] Webber, M.E., 2008. Catch-22: Water vs. Energy, Sci. Am. 18, 34–41.
[12] Al-Karaghouli, A., Rene, D., Kazmerski, L., 2009. Solar and wind opportunities for water desalination in the Arab region, Renew. Sustain. Energy Rev., 13, 2397 – 2407.
[13] Arabian Oil and Gas, 2009. New Kid on the Grid, Utilities ME. (Online) Available at: http://www.arabianoilandgas.com/article-5132- new_kid_on_the_grid/ (2012 11-11)
[14] Nat. Geo. 2009. Solar Power: Endless Potential, National Geographic, (Online) Available at: http://www.ngm,com (2012 19-05)
[15] Rizzuti, L., Ettouney, H., Cipolina A., (eds.) 2006. Solar Desalination for the 21st Century. Proceedings of the NATO Advanced Research Workshop on Solar Desalination for the 21st Century, Hammamet, Tunisia, 23-25 February 2006; Series: Nato Security through Science Series C: 355–369. 2007
[16] Younos, T., Tulou, K., 2005. Energy Needs, Consumption and Sources, J. Contemp. Water Res. Educ., 132, 27-38.
[17] Lamei, A., Van der Zaag, P., Von Munch, E., 2008. Impact of solar energy cost on water production cost of seawater desalination plants in Egypt, Energy Policy, 36, 1748 - 1756
[18] Moser, M., Trieb, F., Fichter, T., Kern, J., 2013. Renewable desalination: a methodology for cost comparison, Desalination Water Treat., 51, 4-6
[19] Fiorenza, G., Sharma, V.K., Braccio, G., 2003. Techno-economic evaluation of a solar powered water desalination plant, Ener.Conserv.Manag. 44, 2217–2240.
[20] Karagiannis, I., Soldatos, P., 2008. Water desalination cost literature: review and assessment, Desalination, 223, 448-456.
[21] Blanco, J., Alarcon, D., 2003. Innovative Ideas to reduce current cost of solar seawater desalination based on MED Technology, Centro de InvestigacionesEnergeticas, Medioambientales y Technologicas (CIEMAT)
[22] Thomson, M., 2003. Reverse Osmosis Desalination of Seawater Powered by Photovoltaics without batteries, Thesis, UK: Loughborough University
[23] Fritzmann, C., Lowenberg, G., Wintgens, T., Melin, T., 2007.State –ofthe- art of reverse osmosis desalination, Desalination, 216, 1-76.
[24] Nisan, S., Benzarti, N., 2008. A comprehensive economic evaluation of integrated desalination systems using fossil fuelled and nuclear energies and including their environmental costs, Desalination, 229, 125-146.
[25] Trieb, F., Nitsch, J., Kronshage, S., Schillings, C., Brischke, L., Knies, G., Czisch, G., 2008. Concentrating solar power for seawater desalination in the Middle East and North Africa, Desalination, 220, 165–183.
[26] DLR, Direktnormalstrahlungfür das Jahr, 2005. German Aerospace Center DLR, Institute of Technical Thermodynamics, Dep. Systems Analysis & Technology Assessment, Stuttgart
[27] Cameron, P., Crompton, G., 2009. Solar Power Plant Pre-feasibility Study.ActewAGL and ACT Government. Parsons Brinckerhoff Australia Pty Limited, Australia, (Online) Available at: http://www.environment.act.gov.au/_data/assets/pdf_file/0019/154054/S olar_Power_plant_Pre-feasibility_study.pdf (2012 21-2)
[28] Florio, M., Finzi, U., Genco, M., Levarlet, F., Maffii, S., Tracogna, A., 2008. Guide to cost benefit analysis of investment projects, Directorate General Regional Policy, European Commission. (Online) Available at: http://ec.europa.eu/regional_policy/sources/docgener/guides/cost/guide2 008_en.pdf (2012 12-5)
[29] Olwig, R., Hirsch, T., Sattler, C., Glade, H., Schmeken, L., Will, S., Ghermandi, A., Messalem, R., 2012. Techno–economic analysis of combined concentrating solar power and desalination plant configurations, Desalination and Water Treatment, 41(1-3), 9-25.
[30] Reddy, K.V., Ghaffour, N., 2007. Overview of the cost of desalinated water and costing methodologies, Desalination, 205, 340-353.
[31] Sargent & Lundy LLC Consulting Group, 2004. Assessment of Parabolic Trough & Power tower Solar Technology, National Renewable Energy Laboratory, San Diego Regional Renewable Energy Study Goup, Colorado
[32] Younos, T., 2005. The Economics of Desalination, J. Contemp. Water Res. Educ., 132, 39-45.
[33] Levy, H., Sarnat, M., 1994. Capital Investment and Financial Decisions, 5th Edition, United Kingdom: Prentice Hall International
[34] Fthenakis, V.M, Kim, H.C., 2007. Greenhouse-gas emissions from solar electric- and nuclear power: A life-cycle study, Energy Policy, 35, 2549- 2557.
[35] McIntyre, J., Berg, B., Seto, H., Borchardt, S., 2011. Comparison of Lifecycle Greenhouse Gas Emissions of Various Electricity Generation Sources, World Nuclear Association, UK. (Online) Available at: http://www.worldnuclear.org/uploadedfiles/org/reference/pdf/compariso n_of_lifecycle.pdf (2012 20-11)