Revision as of 23:16, 18 March 2014

Economic barriers

CSP today is usually not competitive in wholesale bulk electricity markets, except perhaps in isolated locations such as islands or remote grids, so in the short term its deployment depends on incentives. A number of regions, including Spain, Algeria, some Indian states, Israel and South Africa, have put in place feed-in tariffs or premium payments. Spain, for example, lets the producers choose between a tariff of EUR 270 (USD 375)/MWh, or a premium of EUR 250 (USD 348)/MWh that adds to the market price, with a minimum guaranteed revenue of EUR 250/MWh and a maximum of EUR 340 (USD 473)/MWh. This approach has proven effective, as it offers developers and banks long-term price certainty, and makes CSP one of the less risky investments in the power sector. In the United States, the federal government recently created the Renewable Energy Grant Program, as well as a Federal Loan Guarantee Program designed to foster innovation. BrightSource became the first CSP provider to benefit from this programme, securing USD 1.4 billion from the US Department of Energy in February 2010 for several projects. In the long term, however, financing of CSP plants may become difficult if investors in technology companies do not supply some equity capital. Prices for capacity and energy are only guaranteed by utilities on a case-by-case basis under renewable portfolio standards (the regulations that require increased production of energy from renewable sources) and these standards are not always binding^[1].

Incentives for deployment

To support CSP deployment, it is vital to build investor confidence by setting a sufficiently high price for the electricity generated, and in a predictable manner. Feed-in tariffs and premiums have proven effective for CSP deployment in Spain, and for other renewable energy technologies in many countries. The levels of feed-in tariffs or premiums must be carefully studied and agreed upon with everyone involved, however, as they are ineffective if too low and economically inefficient if too generous. Renewable energy standards might be effective if they are sufficiently ambitious and “binding” for utilities – that is, if the financial penalties or safety valves are set at appropriate levels in case of no or imited compliance. While incentives need to be gradually reduced to foster less expensive CSP electricity, revisions need to be announced in advance to enable producers to adapt. Furthermore, while governments may want to limit the benefit of incentives to specified overall project capacities, they should not arbitrarily limit plant size, as scaling up plant size is one important way of reducing costs. Similarly, governments should avoid arbitrarily setting hybridisation rates; instead, they should establish ways to limit incentives to the solar fraction of CSP power. As PV power and CSP use the same resource, they should enjoy the same incentives so that choices efficiently match the quality of the solar resource with energy needs. Governments should also design and implement incentives for solar process heat for industrial applications of all kinds and, at a later stage, for the various solar fuels that concentrating solar plants can deliver. Regardless of whether the electricity sector belongs to state-owned or partially state-owned monopolies or is fully deregulated, governments could encourage all utilities to bid for CSP capacities. Governments should also consider other options to help initiate or develop CSP capacities, such as: offering suitable land or connection to the grid or to water resources; waiving land property taxes; and helping ensure the availability of low-cost or at least reasonably priced loans. Utilities, for their part, should reward the flexibility of CSP plants, i.e. their ability to dispatch electricity when needed. Capacity payments represent a simple option for doing this. Storage has a cost, and should be valued at grid level, not plant level. Policy frameworks should encourage this necessary evolution^[2].

Addressing non-economic barriers

Obtaining permits and grid access are the main challenges for new CSP plants. Access to water or gas networks for backup may be difficult in some locations, and will certainly become important if large numbers of CSP plants are deployed in desert regions. Nearby residents do not usually object to permits, although the synthetic oil of trough plants and molten salts are classified as hazardous material in some jurisdictions. Before permits are given, however, all environmental impacts must be evaluated, including loss of animal habitat, water use, visual impact and species. The pace of the permitting process is the most frequent problem. In California, for example, environmental analyses on federal or state land can take 18 to 24 months. Similarly, grid access problems are not caused by utilities, which like the guaranteed, dispatchable nature of CSP, but by slow planning and permitting processes.Governments must act decisively to streamline procedures and permits for CSP plants and transmission lines. It is especially important to build a network of HVDC lines to transmit electricity from CSP plants in sunny regions to less sunny regions with large electricity demand. The global success of CSP depends on interested countries, producers and consumers sharing a common vision^[3].

Addressing non-economic barriers

Obtaining permits and grid access are the main challenges for new CSP plants. Access to water or gas networks for backup may be difficult in ome locations, and will certainly become important if large numbers of CSP plants are deployed in desert regions. Nearby residents do not usually object to permits, although the synthetic oil of trough plants and molten salts are classified as hazardous material in some jurisdictions. Before permits are given, however, all environmental impacts must be evaluated, including loss of animal habitat, water use, visual impact and effects on endangered species. The pace of the permitting process is the most frequent problem. In California, for example, environmental analyses on federal or state land can take 18 to 24 months. Similarly, grid access problems are not caused by utilities, which like the guaranteed, dispatchable nature of CSP, but by slow planning and permitting processes. Governments must act decisively to streamline procedures and permits for CSP plants and transmission lines. It is especially important to build a network of HVDC lines to transmit electricity from CSP plants in sunny regions to less sunny regions with large electricity demand. The global success of CSP depends on interested countries, producers and consumers sharing a common vision. Such projects need to result in win-win situations. It would seem unacceptable, for example, if all solar electricity were exported overseas while local populations and economies lacked sufficient power resources. Newly built plants will have to fulfil develop local economies. Meanwhile, the returns from exporting clean, highly valued renewable electricity to industrialised countries could help cover the high initial investment costs of CSP beyond the share devoted to exports. CSP would thus represent a welcome diversification from oil and gas exports, and help develop local economies by providing income, electricity, knowledge, technology and qualified jobs. Possible energy security risks for importing countries must also be carefully assessed. Large exports would require many HVDC lines following various pathways. The largest transfers envisioned in this roadmap, from North Africa to Europe, would require by 2050 over 125 GW of HVDC lines with 50% capacity factor – i.e. 25 distinct 5 GW lines following various paths. If some were out of order for technical reasons, or as a result of an attack, others would still operate – and, if the grid within importing and exporting countries permits, possibly take over. In any case, utilities usually operate with significant generating capacity reserves, which could be brought on line in case of supply disruptions, albeit at some cost. Furthermore, the loss of revenue for supply countries would be unrecoverable, as electricity cannot be stored, unlike fossil fuels. Thus, exporting countries, even more than importing ones, would be willing to safeguard against supply disruptions^[4].

CSP Dropbox

For more information on the legal framework of Concentrating Solar Power check out the CSP-Dropbox.

References

↑ 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power
↑ 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power
↑ 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power
↑ 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power

[0] 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power

[1] 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power

[2] 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power

[3] 2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power

[1]

[2]

[3]

[4]

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+{{tabs-2
+|:Legal Framework of CSP Utilization|Legal Framework
+|:CSP Financing|Financing
+}}
+{| cellspacing="0" cellpadding="0" border="0" style="width: 100%"
+|-
+| style="width: 370px" | __TOC__
+| style="width: 394px" | [[File:CSP Icon.png|right|32px|Go back to the CSP Overview|alt=Go back to the CSP Overview|link=Concentrating Solar Power (CSP)]]
+|}
 = Economic barriers =
-<div><span style="font-size: 0.85em;">CSP today is usually not competitive in wholesale </span><span style="font-size: 0.85em;">bulk electricity markets, except perhaps in isolated </span><span style="font-size: 0.85em;">locations such as islands or remote grids, so in the </span><span style="font-size: 0.85em;">short term its deployment depends on incentives. </span><span style="font-size: 0.85em;">A number of regions, including Spain, Algeria, </span><span style="font-size: 0.85em;">some Indian states, Israel and South Africa, have </span><span style="font-size: 0.85em;">put in place feed-in tariffs or premium payments. </span><span style="font-size: 0.85em;">Spain, for example, lets the producers choose </span><span style="font-size: 0.85em;">between a tariff of EUR 270 (USD 375)/MWh, or a </span><span style="font-size: 0.85em;">premium of EUR 250 (USD 348)/MWh that adds </span><span style="font-size: 0.85em;">to the market price, with a minimum guaranteed </span><span style="font-size: 0.85em;">revenue of EUR 250/MWh and a maximum of </span><span style="font-size: 0.85em;">EUR 340 (USD 473)/MWh. This approach has </span><span style="font-size: 0.85em;">proven effective, as it offers developers and banks </span><span style="font-size: 0.85em;">long-term price certainty, and makes CSP one of </span><span style="font-size: 0.85em;">the less risky investments in the power sector. </span><span style="font-size: 0.85em;">In the United States, the federal government </span><span style="font-size: 0.85em;">recently created the Renewable Energy Grant </span><span style="font-size: 0.85em;">Program, as well as a Federal Loan Guarantee </span><span style="font-size: 0.85em;">Program designed to foster innovation. </span><span style="font-size: 0.85em;">BrightSource became the first CSP provider to </span><span style="font-size: 0.85em;">benefit from this programme, securing USD </span><span style="font-size: 0.85em;">1.4 billion from the US Department of Energy </span><span style="font-size: 0.85em;">in February 2010 for several projects. </span><span style="font-size: 0.85em;">In the long term, however, financing of CSP plants </span><span style="font-size: 0.85em;">may become difficult if investors in technology </span><span style="font-size: 0.85em;">companies do not supply some equity capital. </span><span style="font-size: 0.85em;">Prices for capacity and energy are only guaranteed </span><span style="font-size: 0.85em;">by utilities on a case-by-case basis under </span><span style="font-size: 0.85em;">renewable portfolio standards (the regulations </span><span style="font-size: 0.85em;">that require increased production of energy from </span><span style="font-size: 0.85em;">renewable sources) and these standards are not </span><span style="font-size: 0.85em;">always binding<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref>.</span></div><div><br/></div>
+<div><span style="font-size: 0.85em">CSP today is usually not competitive in wholesale </span><span style="font-size: 0.85em">bulk electricity markets, except perhaps in isolated </span><span style="font-size: 0.85em">locations such as islands or remote grids, so in the </span><span style="font-size: 0.85em">short term its deployment depends on incentives. </span><span style="font-size: 0.85em">A number of regions, including Spain, Algeria, </span><span style="font-size: 0.85em">some Indian states, Israel and South Africa, have </span><span style="font-size: 0.85em">put in place feed-in tariffs or premium payments. </span><span style="font-size: 0.85em">Spain, for example, lets the producers choose </span><span style="font-size: 0.85em">between a tariff of EUR 270 (USD 375)/MWh, or a </span><span style="font-size: 0.85em">premium of EUR 250 (USD 348)/MWh that adds </span><span style="font-size: 0.85em">to the market price, with a minimum guaranteed </span><span style="font-size: 0.85em">revenue of EUR 250/MWh and a maximum of </span><span style="font-size: 0.85em">EUR 340 (USD 473)/MWh. This approach has </span><span style="font-size: 0.85em">proven effective, as it offers developers and banks </span><span style="font-size: 0.85em">long-term price certainty, and makes CSP one of </span><span style="font-size: 0.85em">the less risky investments in the power sector. </span><span style="font-size: 0.85em">In the United States, the federal government </span><span style="font-size: 0.85em">recently created the Renewable Energy Grant </span><span style="font-size: 0.85em">Program, as well as a Federal Loan Guarantee </span><span style="font-size: 0.85em">Program designed to foster innovation. </span><span style="font-size: 0.85em">BrightSource became the first CSP provider to </span><span style="font-size: 0.85em">benefit from this programme, securing USD </span><span style="font-size: 0.85em">1.4 billion from the US Department of Energy </span><span style="font-size: 0.85em">in February 2010 for several projects. </span><span style="font-size: 0.85em">In the long term, however, financing of CSP plants </span><span style="font-size: 0.85em">may become difficult if investors in technology </span><span style="font-size: 0.85em">companies do not supply some equity capital. </span><span style="font-size: 0.85em">Prices for capacity and energy are only guaranteed </span><span style="font-size: 0.85em">by utilities on a case-by-case basis under </span><span style="font-size: 0.85em">renewable portfolio standards (the regulations </span><span style="font-size: 0.85em">that require increased production of energy from </span><span style="font-size: 0.85em">renewable sources) and these standards are not </span><span style="font-size: 0.85em">always binding<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref>.</span></div><div><br/></div>
 = Incentives for deployment =
-<div><div><span style="font-size: 0.85em;">To support CSP deployment, it is vital to build </span><span style="font-size: 0.85em;">investor confidence by setting a sufficiently </span><span style="font-size: 0.85em;">high price for the electricity generated, and in a </span><span style="font-size: 0.85em;">predictable manner. Feed-in tariffs and premiums </span><span style="font-size: 0.85em;">have proven effective for CSP deployment in Spain, </span><span style="font-size: 0.85em;">and for other renewable energy technologies in </span><span style="font-size: 0.85em;">many countries. The levels of feed-in tariffs or </span><span style="font-size: 0.85em;">premiums must be carefully studied and agreed </span><span style="font-size: 0.85em;">upon with everyone involved, however, as they are </span><span style="font-size: 0.85em;">ineffective if too low and economically inefficient </span><span style="font-size: 0.85em;">if too generous. Renewable energy standards </span><span style="font-size: 0.85em;">might be effective if they are sufficiently ambitious </span><span style="font-size: 0.85em;">and “binding” for utilities – that is, if the financial </span><span style="font-size: 0.85em;">penalties or safety valves are set at appropriate </span><span style="font-size: 0.85em;">levels in case of no or imited compliance. </span><span style="font-size: 0.85em;">While incentives need to be gradually reduced to </span><span style="font-size: 0.85em;">foster less expensive CSP electricity, revisions need </span><span style="font-size: 0.85em;">to be announced in advance to enable producers </span><span style="font-size: 0.85em;">to adapt. Furthermore, while governments may </span><span style="font-size: 0.85em;">want to limit the benefit of incentives to specified </span><span style="font-size: 0.85em;">overall project capacities, they should not </span><span style="font-size: 0.85em;">arbitrarily limit plant size, as scaling up plant size is </span><span style="font-size: 0.85em;">one important way of reducing costs. </span><span style="font-size: 0.85em;">Similarly, governments should avoid arbitrarily </span><span style="font-size: 0.85em;">setting hybridisation rates; instead, they should </span><span style="font-size: 0.85em;">establish ways to limit incentives to the solar </span><span style="font-size: 0.85em;">fraction of CSP power. As PV power and CSP use </span><span style="font-size: 0.85em;">the same resource, they should enjoy the same </span><span style="font-size: 0.85em;">incentives so that choices efficiently match the </span><span style="font-size: 0.85em;">quality of the solar resource with energy needs. </span><span style="font-size: 0.85em;">Governments should also design and implement </span><span style="font-size: 0.85em;">incentives for solar process heat for industrial </span><span style="font-size: 0.85em;">applications of all kinds and, at a later stage, for </span><span style="font-size: 0.85em;">the various solar fuels that concentrating solar </span><span style="font-size: 0.85em;">plants can deliver. </span><span style="font-size: 0.85em;">Regardless of whether the electricity sector </span><span style="font-size: 0.85em;">belongs to state-owned or partially state-owned </span><span style="font-size: 0.85em;">monopolies or is fully deregulated, governments </span><span style="font-size: 0.85em;">could encourage all utilities to bid for CSP </span><span style="font-size: 0.85em;">capacities. Governments should also consider </span><span style="font-size: 0.85em;">other options to help initiate or develop CSP </span><span style="font-size: 0.85em;">capacities, such as: offering suitable land or </span><span style="font-size: 0.85em;">connection to the grid or to water resources; </span><span style="font-size: 0.85em;">waiving land property taxes; and helping ensure </span><span style="font-size: 0.85em;">the availability of low-cost or at least reasonably </span><span style="font-size: 0.85em;">priced loans. </span><span style="font-size: 0.85em;">Utilities, for their part, should reward the </span><span style="font-size: 0.85em;">flexibility of CSP plants, i.e. their ability to dispatch </span><span style="font-size: 0.85em;">electricity when needed. Capacity payments </span><span style="font-size: 0.85em;">represent a simple option for doing this. Storage </span><span style="font-size: 0.85em;">has a cost, and should be valued at grid level, not </span><span style="font-size: 0.85em;">plant level. Policy frameworks should encourage </span><span style="font-size: 0.85em;">this necessary evolution<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref></span><span style="font-size: 0.85em;">.</span></div><div><br/></div>
+<div><div><span style="font-size: 0.85em">To support CSP deployment, it is vital to build </span><span style="font-size: 0.85em">investor confidence by setting a sufficiently </span><span style="font-size: 0.85em">high price for the electricity generated, and in a </span><span style="font-size: 0.85em">predictable manner. Feed-in tariffs and premiums </span><span style="font-size: 0.85em">have proven effective for CSP deployment in Spain, </span><span style="font-size: 0.85em">and for other renewable energy technologies in </span><span style="font-size: 0.85em">many countries. The levels of feed-in tariffs or </span><span style="font-size: 0.85em">premiums must be carefully studied and agreed </span><span style="font-size: 0.85em">upon with everyone involved, however, as they are </span><span style="font-size: 0.85em">ineffective if too low and economically inefficient </span><span style="font-size: 0.85em">if too generous. Renewable energy standards </span><span style="font-size: 0.85em">might be effective if they are sufficiently ambitious </span><span style="font-size: 0.85em">and “binding” for utilities – that is, if the financial </span><span style="font-size: 0.85em">penalties or safety valves are set at appropriate </span><span style="font-size: 0.85em">levels in case of no or imited compliance. </span><span style="font-size: 0.85em">While incentives need to be gradually reduced to </span><span style="font-size: 0.85em">foster less expensive CSP electricity, revisions need </span><span style="font-size: 0.85em">to be announced in advance to enable producers </span><span style="font-size: 0.85em">to adapt. Furthermore, while governments may </span><span style="font-size: 0.85em">want to limit the benefit of incentives to specified </span><span style="font-size: 0.85em">overall project capacities, they should not </span><span style="font-size: 0.85em">arbitrarily limit plant size, as scaling up plant size is </span><span style="font-size: 0.85em">one important way of reducing costs. </span><span style="font-size: 0.85em">Similarly, governments should avoid arbitrarily </span><span style="font-size: 0.85em">setting hybridisation rates; instead, they should </span><span style="font-size: 0.85em">establish ways to limit incentives to the solar </span><span style="font-size: 0.85em">fraction of CSP power. As PV power and CSP use </span><span style="font-size: 0.85em">the same resource, they should enjoy the same </span><span style="font-size: 0.85em">incentives so that choices efficiently match the </span><span style="font-size: 0.85em">quality of the solar resource with energy needs. </span><span style="font-size: 0.85em">Governments should also design and implement </span><span style="font-size: 0.85em">incentives for solar process heat for industrial </span><span style="font-size: 0.85em">applications of all kinds and, at a later stage, for </span><span style="font-size: 0.85em">the various solar fuels that concentrating solar </span><span style="font-size: 0.85em">plants can deliver. </span><span style="font-size: 0.85em">Regardless of whether the electricity sector </span><span style="font-size: 0.85em">belongs to state-owned or partially state-owned </span><span style="font-size: 0.85em">monopolies or is fully deregulated, governments </span><span style="font-size: 0.85em">could encourage all utilities to bid for CSP </span><span style="font-size: 0.85em">capacities. Governments should also consider </span><span style="font-size: 0.85em">other options to help initiate or develop CSP </span><span style="font-size: 0.85em">capacities, such as: offering suitable land or </span><span style="font-size: 0.85em">connection to the grid or to water resources; </span><span style="font-size: 0.85em">waiving land property taxes; and helping ensure </span><span style="font-size: 0.85em">the availability of low-cost or at least reasonably </span><span style="font-size: 0.85em">priced loans. </span><span style="font-size: 0.85em">Utilities, for their part, should reward the </span><span style="font-size: 0.85em">flexibility of CSP plants, i.e. their ability to dispatch </span><span style="font-size: 0.85em">electricity when needed. Capacity payments </span><span style="font-size: 0.85em">represent a simple option for doing this. Storage </span><span style="font-size: 0.85em">has a cost, and should be valued at grid level, not </span><span style="font-size: 0.85em">plant level. Policy frameworks should encourage </span><span style="font-size: 0.85em">this necessary evolution<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref></span><span style="font-size: 0.85em">.</span></div><div><br/></div>
-= <span style="font-size: 0.85em;">Addressing </span><span style="font-size: 0.85em;">non-economic barriers</span> =
+= <span style="font-size: 0.85em">Addressing </span><span style="font-size: 0.85em">non-economic barriers</span> =
-<div><div><span style="font-size: 0.85em;">Obtaining permits and grid access are the main </span><span style="font-size: 0.85em;">challenges for new CSP plants. Access to water or </span><span style="font-size: 0.85em;">gas networks for backup may be difficult in some </span><span style="font-size: 0.85em;">locations, and will certainly become important if </span><span style="font-size: 0.85em;">large numbers of CSP plants are deployed in desert </span><span style="font-size: 0.85em;">regions. </span><span style="font-size: 0.85em;">Nearby residents do not usually object to permits, </span><span style="font-size: 0.85em;">although the synthetic oil of trough plants and </span><span style="font-size: 0.85em;">molten salts are classified as hazardous material </span><span style="font-size: 0.85em;">in some jurisdictions. Before permits are given, </span><span style="font-size: 0.85em;">however, all environmental impacts must be </span><span style="font-size: 0.85em;">evaluated, including loss of animal habitat, water </span><span style="font-size: 0.85em;">use, visual impact and </span><span style="font-size: 0.85em;">species. The pace of the permitting process is the </span><span style="font-size: 0.85em;">most frequent problem. In California, for example, </span><span style="font-size: 0.85em;">environmental analyses on federal or state land </span><span style="font-size: 0.85em;">can take 18 to 24 months. </span><span style="font-size: 0.85em;">Similarly, grid access problems are not caused by </span><span style="font-size: 0.85em;">utilities, which like the guaranteed, dispatchable </span><span style="font-size: 0.85em;">nature of CSP, but by slow planning and </span><span style="font-size: 0.85em;">permitting processes.</span><span style="font-size: 0.85em;">Governments must act decisively to streamline </span><span style="font-size: 0.85em;">procedures and permits for CSP plants and </span><span style="font-size: 0.85em;">transmission lines. It is especially important </span><span style="font-size: 0.85em;">to build a network of HVDC lines to transmit </span><span style="font-size: 0.85em;">electricity from CSP plants in sunny regions to </span><span style="font-size: 0.85em;">less sunny regions with large electricity demand. </span><span style="font-size: 0.85em;">The global success of CSP depends on interested </span><span style="font-size: 0.85em;">countries, producers and consumers sharing a </span><span style="font-size: 0.85em;">common vision<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref>.</span></div><div><br/></div>
+<div><div><span style="font-size: 0.85em">Obtaining permits and grid access are the main </span><span style="font-size: 0.85em">challenges for new CSP plants. Access to water or </span><span style="font-size: 0.85em">gas networks for backup may be difficult in some </span><span style="font-size: 0.85em">locations, and will certainly become important if </span><span style="font-size: 0.85em">large numbers of CSP plants are deployed in desert </span><span style="font-size: 0.85em">regions. </span><span style="font-size: 0.85em">Nearby residents do not usually object to permits, </span><span style="font-size: 0.85em">although the synthetic oil of trough plants and </span><span style="font-size: 0.85em">molten salts are classified as hazardous material </span><span style="font-size: 0.85em">in some jurisdictions. Before permits are given, </span><span style="font-size: 0.85em">however, all environmental impacts must be </span><span style="font-size: 0.85em">evaluated, including loss of animal habitat, water </span><span style="font-size: 0.85em">use, visual impact and </span><span style="font-size: 0.85em">species. The pace of the permitting process is the </span><span style="font-size: 0.85em">most frequent problem. In California, for example, </span><span style="font-size: 0.85em">environmental analyses on federal or state land </span><span style="font-size: 0.85em">can take 18 to 24 months. </span><span style="font-size: 0.85em">Similarly, grid access problems are not caused by </span><span style="font-size: 0.85em">utilities, which like the guaranteed, dispatchable </span><span style="font-size: 0.85em">nature of CSP, but by slow planning and </span><span style="font-size: 0.85em">permitting processes.</span><span style="font-size: 0.85em">Governments must act decisively to streamline </span><span style="font-size: 0.85em">procedures and permits for CSP plants and </span><span style="font-size: 0.85em">transmission lines. It is especially important </span><span style="font-size: 0.85em">to build a network of HVDC lines to transmit </span><span style="font-size: 0.85em">electricity from CSP plants in sunny regions to </span><span style="font-size: 0.85em">less sunny regions with large electricity demand. </span><span style="font-size: 0.85em">The global success of CSP depends on interested </span><span style="font-size: 0.85em">countries, producers and consumers sharing a </span><span style="font-size: 0.85em">common vision<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref>.</span></div><div><br/></div>
-= <span style="font-size: 0.85em;">Addressing </span><span style="font-size: 0.85em;">non-economic barriers</span><br/> =
+= <span style="font-size: 0.85em">Addressing </span><span style="font-size: 0.85em">non-economic barriers</span><br/> =
-<span style="line-height: 1.5em; font-size: 0.85em;">Obtaining permits and grid access are the main </span><span style="line-height: 1.5em; font-size: 0.85em;">challenges for new CSP plants. Access to water or </span><span style="line-height: 1.5em; font-size: 0.85em;">gas networks for backup may be difficult in ome </span><span style="line-height: 1.5em; font-size: 0.85em;">locations, and will certainly become important if </span><span style="line-height: 1.5em; font-size: 0.85em;">large numbers of CSP plants are deployed in desert </span><span style="line-height: 1.5em; font-size: 0.85em;">regions. </span><span style="line-height: 1.5em; font-size: 0.85em;">Nearby residents do not usually object to permits, </span><span style="line-height: 1.5em; font-size: 0.85em;">although the synthetic oil of trough plants and </span><span style="line-height: 1.5em; font-size: 0.85em;">molten salts are classified as hazardous material </span><span style="line-height: 1.5em; font-size: 0.85em;">in some jurisdictions. Before permits are given, </span><span style="line-height: 1.5em; font-size: 0.85em;">however, all environmental impacts must be </span><span style="line-height: 1.5em; font-size: 0.85em;">evaluated, including loss of animal habitat, water </span><span style="line-height: 1.5em; font-size: 0.85em;">use, visual impact and effects on endangered </span><span style="line-height: 1.5em; font-size: 0.85em;">species. The pace of the permitting process is the </span><span style="line-height: 1.5em; font-size: 0.85em;">most frequent problem. In California, for example, </span><span style="line-height: 1.5em; font-size: 0.85em;">environmental analyses on federal or state land </span><span style="line-height: 1.5em; font-size: 0.85em;">can take 18 to 24 months. </span><span style="line-height: 1.5em; font-size: 0.85em;">Similarly, grid access problems are not caused by </span><span style="line-height: 1.5em; font-size: 0.85em;">utilities, which like the guaranteed, dispatchable </span><span style="line-height: 1.5em; font-size: 0.85em;">nature of CSP, but by slow planning and </span><span style="line-height: 1.5em; font-size: 0.85em;">permitting processes. </span><span style="line-height: 1.5em; font-size: 0.85em;">Governments must act decisively to streamline </span><span style="line-height: 1.5em; font-size: 0.85em;">procedures and permits for CSP plants and </span><span style="line-height: 1.5em; font-size: 0.85em;">transmission lines. It is especially important </span><span style="line-height: 1.5em; font-size: 0.85em;">to build a network of HVDC lines to transmit </span><span style="line-height: 1.5em; font-size: 0.85em;">electricity from CSP plants in sunny regions to </span><span style="line-height: 1.5em; font-size: 0.85em;">less sunny regions with large electricity demand. </span><span style="line-height: 1.5em; font-size: 0.85em;">The global success of CSP depends on interested </span><span style="line-height: 1.5em; font-size: 0.85em;">countries, producers and consumers sharing a </span><span style="line-height: 1.5em; font-size: 0.85em;">common vision. </span><span style="line-height: 1.5em; font-size: 0.85em;">Such projects need to result in win-win situations. </span><span style="line-height: 1.5em; font-size: 0.85em;">It would seem unacceptable, for example, if all </span><span style="line-height: 1.5em; font-size: 0.85em;">solar electricity were exported overseas while </span><span style="line-height: 1.5em; font-size: 0.85em;">local populations and economies lacked sufficient </span><span style="line-height: 1.5em; font-size: 0.85em;">power resources. Newly built plants will have to </span><span style="line-height: 1.5em; font-size: 0.85em;">fulfil </span><span style="line-height: 1.5em; font-size: 0.85em;">develop local economies. Meanwhile, the returns </span><span style="line-height: 1.5em; font-size: 0.85em;">from exporting clean, highly valued renewable </span><span style="line-height: 1.5em; font-size: 0.85em;">electricity to industrialised countries could help </span><span style="line-height: 1.5em; font-size: 0.85em;">cover the high initial investment costs of CSP </span><span style="line-height: 1.5em; font-size: 0.85em;">beyond the share devoted to exports. CSP would </span><span style="line-height: 1.5em; font-size: 0.85em;">thus represent a welcome diversification from oil </span><span style="line-height: 1.5em; font-size: 0.85em;">and gas exports, and help develop local economies </span><span style="line-height: 1.5em; font-size: 0.85em;">by providing income, electricity, knowledge, </span><span style="line-height: 1.5em; font-size: 0.85em;">technology and qualified jobs. </span><span style="line-height: 1.5em; font-size: 0.85em;">Possible energy security risks for importing </span><span style="line-height: 1.5em; font-size: 0.85em;">countries must also be carefully assessed. Large </span><span style="line-height: 1.5em; font-size: 0.85em;">exports would require many HVDC lines following </span><span style="line-height: 1.5em; font-size: 0.85em;">various pathways. The largest transfers envisioned </span><span style="line-height: 1.5em; font-size: 0.85em;">in this roadmap, from North Africa to Europe, </span><span style="line-height: 1.5em; font-size: 0.85em;">would require by 2050 over 125 GW of HVDC </span><span style="line-height: 1.5em; font-size: 0.85em;">lines with 50% capacity factor – i.e. 25 distinct </span><span style="line-height: 1.5em; font-size: 0.85em;">5 GW lines following various paths. If some were </span><span style="line-height: 1.5em; font-size: 0.85em;">out of order for technical reasons, or as a result of </span><span style="line-height: 1.5em; font-size: 0.85em;">an attack, others would still operate – and, if the </span><span style="line-height: 1.5em; font-size: 0.85em;">grid within importing and exporting countries </span><span style="line-height: 1.5em; font-size: 0.85em;">permits, possibly take over. In any case, utilities </span><span style="line-height: 1.5em; font-size: 0.85em;">usually operate with significant generating </span><span style="line-height: 1.5em; font-size: 0.85em;">capacity reserves, which could be brought on </span><span style="line-height: 1.5em; font-size: 0.85em;">line in case of supply disruptions, albeit at some </span><span style="line-height: 1.5em; font-size: 0.85em;">cost. Furthermore, the loss of revenue for supply </span><span style="line-height: 1.5em; font-size: 0.85em;">countries would be unrecoverable, as electricity </span><span style="line-height: 1.5em; font-size: 0.85em;">cannot be stored, unlike fossil fuels. Thus, exporting </span><span style="line-height: 1.5em; font-size: 0.85em;">countries, even more than importing ones, would </span><span style="line-height: 1.5em; font-size: 0.85em;">be willing to safeguard against supply disruptions<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref>.</span>
+<span style="line-height: 1.5em;  font-size: 0.85em">Obtaining permits and grid access are the main </span><span style="line-height: 1.5em;  font-size: 0.85em">challenges for new CSP plants. Access to water or </span><span style="line-height: 1.5em;  font-size: 0.85em">gas networks for backup may be difficult in ome </span><span style="line-height: 1.5em;  font-size: 0.85em">locations, and will certainly become important if </span><span style="line-height: 1.5em;  font-size: 0.85em">large numbers of CSP plants are deployed in desert </span><span style="line-height: 1.5em;  font-size: 0.85em">regions. </span><span style="line-height: 1.5em;  font-size: 0.85em">Nearby residents do not usually object to permits, </span><span style="line-height: 1.5em;  font-size: 0.85em">although the synthetic oil of trough plants and </span><span style="line-height: 1.5em;  font-size: 0.85em">molten salts are classified as hazardous material </span><span style="line-height: 1.5em;  font-size: 0.85em">in some jurisdictions. Before permits are given, </span><span style="line-height: 1.5em;  font-size: 0.85em">however, all environmental impacts must be </span><span style="line-height: 1.5em;  font-size: 0.85em">evaluated, including loss of animal habitat, water </span><span style="line-height: 1.5em;  font-size: 0.85em">use, visual impact and effects on endangered </span><span style="line-height: 1.5em;  font-size: 0.85em">species. The pace of the permitting process is the </span><span style="line-height: 1.5em;  font-size: 0.85em">most frequent problem. In California, for example, </span><span style="line-height: 1.5em;  font-size: 0.85em">environmental analyses on federal or state land </span><span style="line-height: 1.5em;  font-size: 0.85em">can take 18 to 24 months. </span><span style="line-height: 1.5em;  font-size: 0.85em">Similarly, grid access problems are not caused by </span><span style="line-height: 1.5em;  font-size: 0.85em">utilities, which like the guaranteed, dispatchable </span><span style="line-height: 1.5em;  font-size: 0.85em">nature of CSP, but by slow planning and </span><span style="line-height: 1.5em;  font-size: 0.85em">permitting processes. </span><span style="line-height: 1.5em;  font-size: 0.85em">Governments must act decisively to streamline </span><span style="line-height: 1.5em;  font-size: 0.85em">procedures and permits for CSP plants and </span><span style="line-height: 1.5em;  font-size: 0.85em">transmission lines. It is especially important </span><span style="line-height: 1.5em;  font-size: 0.85em">to build a network of HVDC lines to transmit </span><span style="line-height: 1.5em;  font-size: 0.85em">electricity from CSP plants in sunny regions to </span><span style="line-height: 1.5em;  font-size: 0.85em">less sunny regions with large electricity demand. </span><span style="line-height: 1.5em;  font-size: 0.85em">The global success of CSP depends on interested </span><span style="line-height: 1.5em;  font-size: 0.85em">countries, producers and consumers sharing a </span><span style="line-height: 1.5em;  font-size: 0.85em">common vision. </span><span style="line-height: 1.5em;  font-size: 0.85em">Such projects need to result in win-win situations. </span><span style="line-height: 1.5em;  font-size: 0.85em">It would seem unacceptable, for example, if all </span><span style="line-height: 1.5em;  font-size: 0.85em">solar electricity were exported overseas while </span><span style="line-height: 1.5em;  font-size: 0.85em">local populations and economies lacked sufficient </span><span style="line-height: 1.5em;  font-size: 0.85em">power resources. Newly built plants will have to </span><span style="line-height: 1.5em;  font-size: 0.85em">fulfil </span><span style="line-height: 1.5em;  font-size: 0.85em">develop local economies. Meanwhile, the returns </span><span style="line-height: 1.5em;  font-size: 0.85em">from exporting clean, highly valued renewable </span><span style="line-height: 1.5em;  font-size: 0.85em">electricity to industrialised countries could help </span><span style="line-height: 1.5em;  font-size: 0.85em">cover the high initial investment costs of CSP </span><span style="line-height: 1.5em;  font-size: 0.85em">beyond the share devoted to exports. CSP would </span><span style="line-height: 1.5em;  font-size: 0.85em">thus represent a welcome diversification from oil </span><span style="line-height: 1.5em;  font-size: 0.85em">and gas exports, and help develop local economies </span><span style="line-height: 1.5em;  font-size: 0.85em">by providing income, electricity, knowledge, </span><span style="line-height: 1.5em;  font-size: 0.85em">technology and qualified jobs. </span><span style="line-height: 1.5em;  font-size: 0.85em">Possible energy security risks for importing </span><span style="line-height: 1.5em;  font-size: 0.85em">countries must also be carefully assessed. Large </span><span style="line-height: 1.5em;  font-size: 0.85em">exports would require many HVDC lines following </span><span style="line-height: 1.5em;  font-size: 0.85em">various pathways. The largest transfers envisioned </span><span style="line-height: 1.5em;  font-size: 0.85em">in this roadmap, from North Africa to Europe, </span><span style="line-height: 1.5em;  font-size: 0.85em">would require by 2050 over 125 GW of HVDC </span><span style="line-height: 1.5em;  font-size: 0.85em">lines with 50% capacity factor – i.e. 25 distinct </span><span style="line-height: 1.5em;  font-size: 0.85em">5 GW lines following various paths. If some were </span><span style="line-height: 1.5em;  font-size: 0.85em">out of order for technical reasons, or as a result of </span><span style="line-height: 1.5em;  font-size: 0.85em">an attack, others would still operate – and, if the </span><span style="line-height: 1.5em;  font-size: 0.85em">grid within importing and exporting countries </span><span style="line-height: 1.5em;  font-size: 0.85em">permits, possibly take over. In any case, utilities </span><span style="line-height: 1.5em;  font-size: 0.85em">usually operate with significant generating </span><span style="line-height: 1.5em;  font-size: 0.85em">capacity reserves, which could be brought on </span><span style="line-height: 1.5em;  font-size: 0.85em">line in case of supply disruptions, albeit at some </span><span style="line-height: 1.5em;  font-size: 0.85em">cost. Furthermore, the loss of revenue for supply </span><span style="line-height: 1.5em;  font-size: 0.85em">countries would be unrecoverable, as electricity </span><span style="line-height: 1.5em;  font-size: 0.85em">cannot be stored, unlike fossil fuels. Thus, exporting </span><span style="line-height: 1.5em;  font-size: 0.85em">countries, even more than importing ones, would </span><span style="line-height: 1.5em;  font-size: 0.85em">be willing to safeguard against supply disruptions<ref>2010_ International Energy Agency: Technology Roadmap Concentrating Solar Power</ref>.</span>
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Legal Framework of Concentrating Solar Power (CSP) Utilization

Revision as of 23:16, 18 March 2014

Contents

Economic barriers

Incentives for deployment

Addressing non-economic barriers

Addressing non-economic barriers

CSP Dropbox

References

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Legal Framework of Concentrating Solar Power (CSP) Utilization

Revision as of 23:16, 18 March 2014

Contents

Economic barriers

Incentives for deployment

Addressing non-economic barriers

Addressing non-economic barriers

CSP Dropbox

References