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4.0 Summary Between 2000 and 2003, four reports were released on the potential for CSP. An assessment of the main issues raised by these reports leads to the following conclusions: 1. Further technology development and deployment could reduce the cost of CSP: The S&L study quantified the significant cost reductions that are possible with continued technology development and deployment. It concluded that there were three elements that could reduce the cost of CSP from approximately 12 cents/kWh today to about 5 cents/kWh by 2020: technology development (42 percent), building larger plants (37 percent), and volume production (21 percent). All four studies mentioned in this report are in agreement that the costs of CSP would fall with greater levels of deployment. 2. CSP requires policy incentives for initial deployment: All the reports emphasized that in the near-term, deployment of CSP depends on the establishment of policy incentives that offset the current higher cost of solar energy. The CSP industry provided a list of incentives it stated were necessary to initiate deployment. These were included in DOE’s 2002 report. Six southwestern States have now established renewable portfolio standards, and the Federal Government has created an investment tax credit that encourages the deployment of CSP. These policies have resulted in the establishment of CSP projects in California, Arizona, and Nevada that could result in 2,000 MW by 2010. Development of CSP could provide energy, economic, environmental, and security benefits. The following factors could make CSP an attractive option for the Southwestern States if policymakers determine that these benefits outweigh the costs. 1. Energy: CSP could provide hundreds of gigawatts of clean power. 2. Economic: Analyses for California, Nevada, and New Mexico estimate that there could be significant benefits in job creation and additions to gross state product accruing from building and operating CSP plants. It is expensive to build a CSP plant and it requires a relatively large number of people to operate and maintain it. Counter balancing this, however, is the absence of a fuel cost. Much of the money that would otherwise be spent on monthly fuel costs, instead is spent on salaries. States and the Federal government have indicated their concern over the rising and volatile price of fossil fuels and their impact on the economy. 3. Environmental: CSP plants do not emit criteria pollutants or greenhouse gases, an issue of growing concern throughout the Federal and State governments. Thus, CSP could be an element of potential future policies related to climate change. 15PDF Image | 2007 Concentrating Solar Power USA DOE
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