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NREL CA Solar Benefits Executive Summary • Energy delivered from early CSP plants (startup in 2007) costs more than that delivered from natural gas combined cycle plants5 ($157 per MWh vs. $104 per MWh, based on a 30 percent ITC for CSP). With technology advancements, improvements to CSP construction efficiency, and with higher gas prices consistent with 2015 MPR projections, CSP becomes competitive with combined cycle power generation ($115 per MWh vs. $119 per MWh, even with the permanent 10 percent ITC). Most of the economic and employment advantages are still retained. • CSP plants are a fixed-cost generation resource and offer a physical hedge against the fluctuating cost of electricity produced with natural gas. • Each CSP plant provides emissions reductions compared to its natural gas counterpart; the 4,000 MW scenario in this study offsets at least 300 tons per year of NOx emissions, 180 tons of CO emissions per year, and 7,600,000 tons per year of CO2. The economic and employment benefits, together with delivered energy price stability and environmental advantages, suggest that the CSP solar alternative would be a beneficial addition to California’s energy supply. While early CSP plants are more costly than their traditional gas counterparts, subsequent plants are estimated to become nearly cost competitive on a levelized cost of energy basis. 5 Based on MPR gas prices for 2007, $6.40/MMBtu, and assuming a 100 MW CSP plant with 6 hours storage and a 500 MW combined cycle plant. Both CSP and combined cycle plants operate at 40 percent capacity factor. All dollars are $2005. April 21, 2006 ES-5PDF Image | Economic, Energy, and Environmental Benefits of Concentrating Solar Power in California
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