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New Mexico Feasibility Study61 This study assessed the feasibility of creating a solar power industry in New Mexico and included an assessment of the economic and fiscal impact on the State. One scenario had five 100 MW plants built over a ten-year period. The benefits of that scenario included: • Creation of 11,696 jobs during the construction phase (direct and indirect) and 397 permanent operation and maintenance (O&M) jobs • Net revenue increase to State and local governments of $1.22 billion over 30 years The study also included a detailed analysis of which components could be manufactured within the State and which would likely be imported from other States or overseas. The report concluded “Building a beachhead [solar] industry holds tremendous economic impact for New Mexico.” California Economic Benefits Study62 Although there are similarities to the above referenced Nevada and New Mexico reports, the California study had a broader scope. It provided an assessment of CSP technologies and California’s solar resource, determined the environmental and energy benefits of CSP, and estimated the economic impact to the state. The California study also compared the economic impact of CSP with natural gas power plants. Because California’s need for electrical power is much greater than Nevada and New Mexico, the study examined deployment scenarios of 2,000 MW and 4,000 MW assumed to be built between 2008 and 2020. The study found that building between 2,000 and 4,000 MW of CSP would have the following effects: • $7 to $13 billion in new investment, of which an estimated $2.8 to $5.4 billion would be spent in California • An increase in Gross State Product of between $13 and $24 billion • The creation of 1,500 to 3,000 jobs Moreover, the study found that a CSP plant requires an approximately 67 percent larger workforce than a comparably sized combined cycle plant. During construction, the impact of each 100 MW of CSP on gross State product is significantly higher than that of a similarly sized combined cycle gas plant ($628 vs. $64 million). The report concluded that “investment in CSP power plants delivers greater return to California in both economic activity and employment than corresponding investment in natural gas equipment. Each dollar spent on CSP contributes approximately $1.40 - $1.50 to California’s gross State product; each dollar spent on natural gas plants contributes $0.90 - $1.00 to the gross State product.”63 This is because of the savings accrued over the lifetime of the plant from not having to purchase natural gas from out of state to keep the plant operating. During 2004, California imported 32 percent of its energy from other States or Canada.64 The use of CSP enables California to use an energy resource abundant within the State. This keeps more money in the State and helps strengthen its economy. Adding CSP also diversifies its sources of energy, lessening its reliance on any one source. The California report also references a study that indicates 13PDF Image | 2007 Concentrating Solar Power USA DOE
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