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Central receiver systems with open volumetric air receiver and packed bed thermal storage are an alternative to the currently deployed salt and steam receiver plants. The air receiver technology is being tested as a complete system at the 1 MWe test and demonstration plant Solar Tower Jülich since 2009 and shows high robustness and availability. Recent developments focused on increasing the thermal receiver efficiency. Changing the receiver geometry to a cavity type and further structural improvements resulted in an efficiency increase to above 85%, as experiments and CFD simulation models show. The high dynamic flexibility could be further enhanced. A commercial reference plant with 50 MWe power level was defined for a potential location in South Africa. An LCOE analysis based on an annual performance simulation was conducted for several design and operational alternatives. Under good conditions, results show LCOE values below 90 €/MWh for the single 50 MWe standard unit. Higher power levels can be reached by multiplying such standard units, leading to further cost savings. [ABSTRACT FROM AUTHOR]