Annual report 2018
The renewable energy market is growing rapidly. The main reason is technology development which is making the solutions more cost-effective and thereby gradually more competitive in the market. One challenge for renewable alternatives in electricity production is that many established solutions rely on sources with intermittent production, i.e. sources that are dependent on the sun shining or the wind blowing. This causes reliability problems and fossil alternatives are therefore needed for stable production of baseload power around the clock. In order to be an fully fledged alternative to fossil sources, long-term storage of renewable energy is needed for cost-effective production of sustainable electricity 24 hours a day.
As a large share of the people in the world lack access to an electricity grid or have an unreliable connection, distributed and controllable alternatives are needed that can function in small local grids, so-called micro grids, or as decentralised solutions, i.e. off-grid. Azelio provides a cost-effective solution for these types of grids, and an environmentally sound alternative for distributed and sustainable baseload power which would otherwise come from diesel generators.
Azelio is initially targeting geographies with good solar conditions for concentrating and storing solar power in the form of thermal energy for later conversion to electricity. These areas are also places where there is the greatest shortage of grid connections and where connections are weak. In 2018 the concentrated solar power (CSP) industry grew by 12% in terms of installed capacity. Large investments have been made in research and development of CSP technology to improve efficiency, reduce costs and develop new storage technologies. The significant value of CSP technology is based on its ability to integrate cost-efficient storage technology. It can also complement other renewable energy sources, such as solar cells or wind power, which at times over-produce electricity and are not able to provide baseload power. This possibility was addressed, for example, during the SolarPACES conference in Morocco in October 2018, and has developed into a clear trend in solar power research and development.
The large value of CSP technology is based on its ability to integrate cost-effective storage technology
In the CSP industry there is established technology and there are existing installations in the 100 MW size and upwards, normally powered by a steam turbine. These facilities are connected to a grid and replace fossil power plants. The market segment under 100 MW in sun-rich regions that lack or have a weak grid connection with a need for a stable electricity supply, such as hospitals, factories, small communities, hotels, shopping centres, farms, mines etc., today rely on diesel generators. This is Azelio’s target segment and the Company aims to offer a significantly more cost-effective and sustainable alternative to replace many diesel generators. There are a few other companies globally that have publicly expressed an interest in the same target segment and that are currently in a development phase.
For more information on target markets, see the website: https://www.azelio.com/solutions/target-market/
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