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Economic Impacts of NREL CA Solar Benefits CSP in California 5.0 Economic Impacts of CSP in California Utilities are charged with planning generation portfolios which provide a safe, adequate, and reliable supply of electricity at the lowest reasonable cost and in an environmentally acceptable manner. Practically, this objective has translated into utilities selecting the lowest cost generation sources. Despite the propensity of utilities to purchase the lowest-cost resources, it has long been recognized that there can be significant socioeconomic impacts associated with new power plant investments. It follows that power plants of different types with different characteristics will have different socioeconomic impacts. The goal of this study is to estimate the impact to the regional economy of developing CSP plants in California and to compare these impacts to regional economic impacts generated by building conventional fossil fueled power stations. The direct and indirect impacts of constructing one CSP plant and a series of CSP plants over the next 15 years have been estimated. 5.1 Economic Impacts Model The purpose of the economic impacts model is to determine the direct and indirect economic impact of developing CSP plants in California. Direct economic impacts are the dollars directly spent by the project in the region on materials, equipment, and wages. Indirect economic impacts are also referred to as the “multiplier” impacts of each dollar spent in the region. These impacts are created when a dollar is spent on goods or services produced by suppliers in the region. For example, if a dollar is spent on equipment manufactured in the region, the manufacturer spends a portion of this dollar to hire additional employees, expand production and purchase goods and services. The degree to which a dollar spent on a particular industry is re-spent in the region is the “multiplier” for that industry. The following economic metrics can be used to measure the direct and indirect economic impact of dollars spent in a given region: • Gross State Output--The total value of goods and services produced within the state. • Earnings--The value of wages and benefits earned by workers in the region. • Employment--Full and part-time jobs. • Fiscal--Impact to tax receipts by the state and local governments. The economic impacts of a power generation project can be divided into the construction and operation periods. During the construction phase of the project, there is a direct economic impact from the portion of goods and services for the project purchased from local vendors. For example, local labor is used for construction and concrete is April 21, 2006 5-1PDF Image | Economic, Energy, and Environmental Benefits of Concentrating Solar Power in California
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