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NREL CA Solar Benefits Conclusions 8.0 Conclusions The purpose of this study was to determine the economic and environmental impacts on California resulting from the installation of concentrating solar power plants. The primary focus was on economic and employment impacts and the comparison of these findings with the corresponding impacts from conventional gas fired generators that would otherwise be employed. To ensure that projected installation scenarios were realistic, the electricity supply characteristics of potential CSP technology variants were examined and the availability of California solar resources to support estimated solar plant output was addressed. The environmental impacts of power production were quantified as well as the possible “hedge” value against increases in natural gas price. Having completed the foregoing, Black and Veatch reaches the following conclusions: • California has high quality solar resources sufficient to support far more concentrating solar installations than either of the 2,100 MW or 4,000 MW capacity scenarios postulated for this study. • Depending on the CSP plant interconnection point and the load profile of the local electricity provider, concentrating solar power installations with 6 hours storage could perform peaking and/or intermediate generation roles for the 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 - $1.50 to California’s Gross State Product; each dollar spent on natural gas plants contributes $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. • Operational period expenditures on operations and maintenance 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. • Energy delivered from early CSP plants (startup in 2007) costs more than that delivered from natural gas combined cycle plants32 ($157 per MWh 32 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 8-1PDF Image | Economic, Energy, and Environmental Benefits of Concentrating Solar Power in California
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