The Australian Renewable Energy Agency (ARENA) has approved $65 million in funding for Australia’s first commercial scale concentrated solar power plant. 

ARENA is supporting Vast Solar to construct VS1; a first-of-a-kind 30 MW/288 MWh concentrated solar power (CSP) plant in Port Augusta, South Australia.

The $203 million project seeks to demonstrate the technical and operational performance of Vast Solar’s modular CSP technology at utility scale to unlock further investment in future projects and provide another pathway for Australian industry to decarbonise.

The project will aim to demonstrate how CSP can provide a reliable and scalable dispatchable renewable energy solution in the Australian market.

CSP uses mirrors to concentrate and capture heat from the sun in solar receivers, with high temperature heat transferred via sodium and stored in molten salt. The stored heat can then be used to heat water to create steam to power a turbine and produce electricity, or the heat can also be used directly to decarbonise some industrial processes.

One of the benefits of CSP is that the captured heat can be stored cost-effectively for long periods with little loss of energy. This means that CSP can be used to generate electricity or provide heat on demand, including overnight.

ARENA has supported the Vast Solar technology since 2012, including providing $9.9 million in funding towards the 1.1 MW CSP Pilot Plant in Jemalong, New South Wales.

The innovations in Vast Solar technology, including the modular design, the use of sodium as the heat transfer fluid and patented control systems, allow the generation of higher temperature heat and a greater reliability of performance than traditional CSP technologies. As such, the Vast Solar CSP technology can result in a pathway to enhanced operational performance and significant cost reduction potential at scale.

ARENA’s funding for VS1 is conditional upon the project reaching financial close, which is targeted to occur in late 2023. VS1 is expected to take two years to build with commercial operations commencing late 2025.