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Executive Summary The Potential of Solar Power for Western Energy Supply A reliable and affordable supply of electricity is essential to protect public health and safety and to sustain a vigorous economy in the West. Rolling blackouts in California in 2000 and 2001, low hydro generation in the Pacific Northwest in 2001, and a power plant construction boom in Texas have drawn attention to electricity issues in the West. All across the nation, demand for and supply of electricity have become unbalanced in the late 1990s, but nowhere has the issue been more pressing than in the West. With population growing in the western states, electricity demand is poised for growth for the remainder of this decade. Both energy demand, that is the number of megawatt-hours (MWh) consumed over the course of the year, as well as peak demand, the highest hourly demand across the hours of the year, will continue to increase. Economic activity and population growth continue to be the most important drivers of electricity demand. In 2001, a total of about 237,078 megawatts (MW) of capacity was installed in the West. Coal- fired generation provided about 44% of the electricity generated in the West and gas-fired gener- ation accounted for about 24%. Hydroelectric power accounts for 22% of capacity and 18% of the generation in the states of the Western Governors’ Association (WGA). Nuclear plants provide 7% of capacity and 11% of the energy. Of the remainder, about 1.5% comes from non-hydro renewables. For almost 20 years, little new generating capacity has been built in the U.S. Now, however, new projects totaling over 133,747 MW by 2010 have been announced. Although not all of the announced projects will be completed, many thousands of megawatts, primarily gas-fired com- bined cycle power plants, are expected to come on-line in the West. The large amount of gas- fired capacity planned may result in more volatile gas prices for customers and will increase the reliance on fossil fuels for power generation. Energy conservation and energy efficiency can help offset the need for new generating capacity. However, renewable energy, in the form of wind or solar, provides one of the means of meeting the demand for power while minimizing adverse impacts on the environment, increasing fuel diversity, and hedging against fuel price volatility. Concentrating solar power (CSP) is the most efficient and cost-effective way to generate electric- ity from the sun. Hundreds of megawatts of CSP solar-generating capacity could be brought on-PDF Image | Solar Fuel From The Sky
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