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NREL CA Solar Benefits Environmental and Hedging Benefits 7.0 Environmental and Hedging Benefits CSP plants provide environmental benefits by generating power without producing criteria and CO2 air emissions. In addition, the use of fixed cost renewable energy generation, such as CSP or wind, can decrease fossil fuel use and provide a hedge against fossil fuel price increases. While CSP plants may have environmental benefits due to emissions reductions, they do require significant land area. A 100 MW CSP plant is estimated to cover approximately 800 acres (comprised mostly of the solar field) while a 500 MW combined cycle plant would occupy about 20 acres.20 7.1 Reduction in Criteria and CO2 Air Emissions A key benefit of the use of CSP plants in California is the potential to reduce the amount of criteria and greenhouse gas emissions. The installation of CSP may reduce air emissions if generating power from CSP plants offsets generation from fossil fueled plants.21 For this calculation of emissions reductions, it has been assumed that the CSP plants will displace generation by combined cycle plants with an average heat rate of 7,000 Btu/kWh. Typical permitted emissions requirements for a new plant in southern California were obtained from the California Air Resources Board, and are shown in Table 7-1.22 Based on these emission rates, the table also shows the amount of emissions displaced by annual generation from a single 100 MW trough plant with six hours of storage, as well as for the low deployment and high deployment scenarios of 2,100 MW and 4,000 MW of CSP generation capacities, respectively. The estimates in Table 7-1 are conservative because of the assumption that CSP would displace emissions from new plants. CSP plants could offset generation from older thermal natural gas or oil fueled generation with average heat rates equal to or exceeding 10,000 Btu per kWh, which would increase the emissions offset by about 30 percent. Furthermore, the older plants are unlikely to have modern air emissions control technology that would be required on new plants. Thus, the increase in emissions offset by assuming displacement of older generation would likely exceed 30 percent. 20 Of course, the land requirements for the combined cycle plant do not include the land required for acquisition of natural gas. 21 While emissions reduction can be more complicated when cap-and-trade systems (such as the RECLAIM system for NOx trading in the South Coast Air Quality Management District) are involved, it is generally correct to assert that a CSP plant that offsets a natural gas-fired plant will result in less emissions. 22 Permitted air emissions requirements are available at the California Air Resources Board at: www.arb.ca.gov/bact/bactnew/rptpara.htm April 21, 2006 7-1PDF Image | Economic, Energy, and Environmental Benefits of Concentrating Solar Power in California
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