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NREL CA Solar Benefits Executive Summary Recent studies have suggested that the installation of CSP, wind or other non-gas plants in lieu of new natural gas fueled generators can relieve a portion of the demand pressure behind gas price volatility. Lawrence Livermore Laboratory and others suggest that the natural gas price could decline by one to four percent for each change of 1 percent in demand. The 4,000 MW high deployment scenario could result in a savings of $60 million per year for natural gas in California for a 1 percent price reduction for a 1 percent usage reduction. At the higher price impact range, the California savings could be four times greater. Power generation with CSP technology does not result in any significant air emissions compared with a business as usual approach. Therefore, if the installation of CSP avoids the installation of new natural gas fueled power stations or avoids the operation of existing power stations, there would be a net reduction in air emissions in California. Using the natural gas combined cycle plant – the cleanest, most efficient fossil technology – as a proxy, data for criteria air emissions reductions were developed. For the 4,000 MW deployment scenario, at least 300 tons per year of NOx and 7.6 million tons per year of CO2 would be avoided. If the fossil displacement is simple cycle gas turbines or coal fired plants, these values would be larger. Black & Veatch has made the following conclusions about the deployment of CSP from this analysis: • • • California has high quality solar resources sufficient to support far more CSP than either the 2,100 MW or 4,000 MW scenarios analyzed. Depending on the CSP plant interconnection point and the load profile of the local electricity provider, CSP with 6 hours of storage could perform peaking and/or intermediate generation roles for a utility. 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 to California’s Gross State Product; each dollar spent on natural gas plants contributes about $0.90 - $1.00 to Gross State Product. - The 4,000 MW deployment scenario was estimated to create about 3,000 permanent jobs from the ongoing operation of the plants. Operations period expenditures on operations and maintenance for CSP create more permanent jobs than alternative natural gas fueled generation. For each 100 MW of generating capacity, CSP was estimated to generate 94 permanent jobs compared to 56 jobs and 13 jobs for combined cycle and simple cycle plants, respectively. • April 21, 2006 ES-4PDF Image | Economic, Energy, and Environmental Benefits of Concentrating Solar Power in California
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