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State policies have played a major role in creating a market that is favorable for CSP deployment. Six Southwestern States (CA, NM, AZ, TX, CO, and NV) have established incentives to promote the use of renewable energy, including solar energy technologies. Because CSP technology operates most efficiently in low-latitude regions where the skies are clear, the Southwest offers the best sites for CSP plants in the U.S. Chief among the state policies to promote renewables are renewable portfolio standards (RPS’s) which require that a specific portion of a state’s electricity consumption be met by renewable energy by a certain year. California’s RPS goal, for example, is 20 percent of total generation from renewable resources by 2010.47 Table 3 lists the requirements of the RPS’s in the six Southwestern States.48 Nevada’s RPS requires each electricity provider to generate 9 percent of its electricity from renewable sources by 2007 and 20 percent by 2015. Furthermore, it requires that 5 percent of the electricity obtained from renewable sources in each year must be acquired from solar energy systems.49 In addition to its RPS, New Mexico has established a Task Force to assess the feasibility of a CSP project. Recommendations from the Task Force to the Governor are currently pending.50 It is important to note that unless a state RPS has a carve-out requirement for solar, utilities will most often pursue the cheapest renewable energy projects, which to date has been wind energy in most states. However, these policies have led to the establishment of several CSP projects since 2004. A list of those projects is provided in Appendix A. In addition to state activities establishing RPS’s, in June 2004 the Western Governors’ Association (WGA) established the Clean and Diversified Energy Initiative for the West. Its goal is to develop 30,000 MW of clean energy in the West by 2015. Under the auspices of the WGA, a Solar Task Force comprised of industry, utility, environmental, and State and Federal government representatives developed a set of policies and incentives it felt were necessary to enable sufficient deployment to bring the cost of CSP down to levels competitive with fossil fuel-generated electricity.51 Although DOE supported the WGA team that wrote the report, the report was not an independent assessment funded by DOE. The report was submitted to the WGA. It was not submitted to DOE and DOE does not necessarily agree with the report’s policy recommendations. A summary of the WGA Solar Task Force report is provided in Appendix B. Benefits of CSP for Utilities Although CSP costs more today than other renewable options such as wind, there are several reasons for utility interest in CSP: Table 3. RPS Requirements in Southwestern States State Requirement Arizona California Colorado Nevada New Mexico Texas 15% by 2025 20% by 2010 10% by 2015 20% by 2015, 5% Solar 10% by 2011 5,880MW (~4.2%) by 2015 9PDF Image | 2007 Concentrating Solar Power USA DOE
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