2007 Concentrating Solar Power USA DOE

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2007 Concentrating Solar Power USA DOE ( 2007-concentrating-solar-power-usa-doe )

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• CSP electricity production aligns closely with periods of peak electricity demand, reducing the need for investment in new generating plants and transmission system upgrades. • Thermal storage or the hybridization of CSP systems with natural gas avoids the problems of solar intermittency and allows the plant to dispatch power to the line when it is needed. • The widespread availability of solar energy throughout the Southwest provides utilities with flexibility in locating CSP plants near existing or planned transmission lines. • Placing CSP plants on the “right” side of congestion can reduce grid congestion and increase grid reliability. • Large centrally-located power plants are the types of systems that the utilities have operated for years and with which they are most comfortable. • Once the CSP plant is built, its energy costs are fixed; this stands in contrast to fossil fueled plants that have experienced large fluctuations in fuel prices during the last several years. Arizona Public Service, in its description of the Southwestern Utility Consortium CSP Initiative,52 gave the following reasons why the consortium of 10 Southwestern utilities is considering developing a CSP plant in Arizona: • Solar energy is Arizona’s greatest renewable resource • CSP is the most effective solar technology • CSP’s peaking capacity when paired with storage or natural gas • Its potential for cost competitiveness in the near future Utilities are also concerned that there may eventually be constraints on greenhouse gas emissions. Because CSP plants do not emit carbon dioxide, they allow utilities to generate electricity without emitting that greenhouse gas. Utility concerns about future greenhouse gas regulations are being fueled by actions taken throughout the country. In September 2006, California enacted the California Global Warming Solutions Act of 2006, which requires California to reduce its greenhouse gas emissions by 25 percent by 2020.53 As of October 2006, more than 300 mayors representing over 50 million Americans had agreed to take steps to reduce greenhouse gas emissions.54 Constraints on greenhouse emissions may make fossil fuel-generated power more expensive, thereby improving the economics of CSP projects. CSP also helps utilities come into compliance with existing Federal, State, and local air quality regulations. The environmental impact of solar energy depends on what fuel source was used to generate the electricity it is replacing. Relative to a typical natural gas combined cycle plant, the cleanest source of fossil-fueled electricity, a 100 MW CSP plant with 6 hours of storage reduces NOx emissions by 7.4 tons/year, CO emissions by 4.5 tons/year, and CO2 emissions by 191,000 tons/year.55 It should be noted, however, that this environmental analysis did not include a complete life cycle analysis that took into account the emissions resulting from constructing the power plants or from making the materials that went into the plants. 10

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