Economic analysis of power generation from parabolic trough solar thermal plants for the Mediterranean region—A case study for the island of Cyprus

In this work a feasibility study is carried out in order to investigate whether the installation of a parabolic trough solar thermal technology for power generation in the Mediterranean region is economically feasible. The case study takes into account the available solar potential for Cyprus, as well as all available data concerning current renewable energy sources policy of the Cyprus Government, including the relevant feed-in tariff. In order to identify the least cost feasible option for the installation of the parabolic trough solar thermal plant a parametric cost–benefit analysis is carried out by varying parameters, such as, parabolic trough solar thermal plant capacity, parabolic trough solar thermal capital investment, operating hours, carbon dioxide emission trading system price, etc. For all above cases the electricity unit cost or benefit before tax, as well as after tax cash flow, net present value, internal rate of return and payback period are calculated. The results indicate that under certain conditions such projects can be profitable.