Fulfilling the Promise of Concentrating Solar Power

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    Fulflling the Promise oConcentrating Solar PowerLow-Cost Incentives Can Spur Innovation in the Solar Market

    By Sean Pool and John Dos Passos Coggin June 2013

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    Fulflling the Promise oConcentrating Solar PowerLow-Cost Incentives Can Spur

    Innovation in the Solar Market

    By Sean Pool and John Dos Passos Coggin May 2013

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    1 Introduction and summary

    3 6 reasons to support concentrating solar power

    5 Concentrating solar power is a proven zero-carbon

    technology with high growth potential

    6 Concentrating solar power can be used for baseload power

    7 Concentrating solar power has few impacts on natural resources

    8 Concentrating solar power creates jobs

    Concentrating solar power is low-cost electricity

    9 Concentrating solar power is carbon-free electricity on a budget

    11 Market and regulatory challenges to innovation

    and deployment o CSP technology

    13 Low-cost policy solutions to reduce risk, promote

    investment, and drive innovation

    14 Existing policy framework

    15 Policy reforms to reduce risk and the cost of capital

    17 Establish an independent clean energy deployment bank

    18 Implement CLEAN contracts or feed-in tariffsReinstate the Depar tment of Energys Loan Guarantee Program

    19 Price carbon

    Policy reforms to streamline regulation and tax treatment

    20 Tax reform for capital-intensive clean energy technologies

    Guarantee transmission-grid connection for solar projects

    21 Stabilize and monetize existing tax incentives

    22 Further streamline regulatory approval by creating

    an interagency one-stop shop for solar power

    23 Regulatory transparency

    24 Conclusion

    26 About the authors

    27 Endnotes

    Contents

    http://www.greenpeace.org/international/Global/international/planet-2/report/2009/5/concentrating-solar-power-2009.pdfhttp://www.solarpowerworldonline.com/2013/05/ivanpah-solar-project-is-more-than-92-complete/http://www.solarpowerworldonline.com/2012/07/worlds-largest-concentrated-solar-plant/http://green.blogs.nytimes.com/2009/02/13/solar-power-and-geopolitics-in-the-mediterranean/http://greeninc.blogs.nytimes.com/2009/06/03/bigger-role-for-concentrating-solar-power/http://www.csptoday.com/usa/pdf/USAtimeline.pdfhttp://www.renewableenergyworld.com/rea/partner/first-conferences/news/article/2011/06/us-concentrated-solar-power-industry-receives-its-biggest-boost-yet-by-american-doehttp://social.csptoday.com/tracker/projects/tablehttp://social.csptoday.com/tracker/projects/tablehttp://www.renewableenergyworld.com/rea/partner/first-conferences/news/article/2011/06/us-concentrated-solar-power-industry-receives-its-biggest-boost-yet-by-american-doehttp://www.csptoday.com/usa/pdf/USAtimeline.pdfhttp://greeninc.blogs.nytimes.com/2009/06/03/bigger-role-for-concentrating-solar-power/http://green.blogs.nytimes.com/2009/02/13/solar-power-and-geopolitics-in-the-mediterranean/http://www.solarpowerworldonline.com/2012/07/worlds-largest-concentrated-solar-plant/http://www.solarpowerworldonline.com/2013/05/ivanpah-solar-project-is-more-than-92-complete/http://www.greenpeace.org/international/Global/international/planet-2/report/2009/5/concentrating-solar-power-2009.pdf
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    1 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Introduction and summary

    Concenraing solar poweralso known as concenraed solar power, concen-

    raed solar hermal, and CSPis a cos-eecive way o produce elecriciy while

    reducing our dependence on oreign oil, improving domesic energy-price sabil-

    iy, reducing carbon emissions, cleaning our air, promoing economic growh,

    and creaing jobs. One physicis has even oued i as he echnology ha will

    save humaniy.1

    Grandiose claims aside, concenraing solar power has recenly garnered heatenion o he U.S. Deparmen o Energy. Te agency has creaed he SunSho

    Iniiaive o lead research ino he echnologywork ha aims o increase e-

    ciency, lower coss, and deliver more reliable perormance rom concenraing

    solar power. Addiionally, high-prole U.S.-based companies such as IBM have

    invesed in CSP research. Increasingly, privae and public sakeholders believe

    ha he echnology holds he greaes poenial o harness he power o he sun o

    mee naional susainabiliy goals.2

    As he Whie House prepares a climae-change-reorm agenda ha embodies he

    bold spiri o his years Sae o he Union address, in which Presiden Barack

    Obama emphasized execuive auhoriy o regulae greenhouse gases, Congress

    has begun debaing he naions new energy uure. Concenraing solar power

    should be a key componen o his dialogue.

    Some are concerned ha clean echnologies are oo immaure and unreliable o

    produce he vas sores o aordable baseload energy needed o power he 21s

    cenury American economy. Ohers are worried ha he naion canno swich o

    carbon-ree elecriciy wihou ruining he economy. CSP echnology, however,

    presens a compelling response o each o hese concerns.

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    2 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    In his repor we deail why he Unied Saes should inves in concenraing solar

    power and delineae he marke and regulaory challenges o he innovaion and

    deploymen o CSP echnology. We also oer he ollowing low-cos policy solu-

    ions ha can reduce risk, promoe invesmen, and drive innovaion in he CSP

    indusry:

    Reducing risk and cos o capial or clean solar energy

    Esablish an independen clean energy deploymen bank. Implemen CLEAN conracs or concenraing solar power. Reinsae he Deparmen o Energy Loan Guaranee Program. Pu a naional price on carbon.

    Sreamlining regulaion and ax reamen o CSP

    Reorm he ax code o pu capial-inensive clean echnologies on equal oo-ing wih ossil uels.

    Guaranee ransmissions grid connecion or concenraing solar power and

    oher solar projecs. Sabilize and moneize exising ax incenives. Sreamline he regulaory approval process by creaing an ineragency one-

    sop shop or concenraing solar power and oher clean energy power-gener-

    aion aciliies. Ensure long-erm regulaory ransparency.

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    3 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    6 reasons to support

    concentrating solar power

    A proven energy echnology wih a 30-year rack record, concenraing solar

    power is a promising clean elecriciy source ripe or developmen in he

    Unied Saes.

    Concenraing solar power is a simple echnology in principle: I requires reec-

    ing very large amouns o sunligh ono a very small area, creaing hea ha can be

    convered ino elecriciy. Indeed, hose who ook survival-raining class, wheher

    in he boy scous or elsewhere, may remember learning how a simple magniyingglass can be used o concenrae he suns rays o sar a re. In ancien Greece,

    hisorical accouns hold ha he Greek army, under insrucion rom Archimedes,

    used large oblong mirrors o reec he suns rays o se ablaze invading Roman sea

    vessels in 212 B.C.3

    Te rs commercial-scale applicaion o his echnology was he Solar Energy

    Generaing Sysem, or SEGS, which was buil in Caliornia in he 1980s. SEGS

    coninues o operae under new ownership, and oday conains more han 900,000

    parabolic rough-syle mirrors a nine separae sies in Souhern Caliornia and

    accouns or 310 megawats, or MW, o insalled generaing capaciyenough o

    power nearly a quarer o a million homes a peak producion.4

    Concenraing solar power, unlike sandard solar phoovolaic echnology, sores

    hea raher han elecriciy, making sorage using CSP echnology poenially

    much cheaper and more eecive han solar phoovolaic, or PV, echnology. Tis

    sorage capaciy allows CSP power plans o generae baseload power, which is

    he minimum power ha a uiliy mus supply o is cusomers o mee demand

    a a given ime.5 Since concenraing solar power can suppor he naions elecric-

    iy grid during all hours o he day, i is able o compee on par wih naural gasand oher radiional ossil-uel sources o energy, wihou he need or expensive

    batery sysems. Many oher orms o clean energy producion do no have his

    capabiliy, making he elecriciy generaed less valuable and harder o uilize or

    grid operaors.6

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    4 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Addiionally, concenraing solar power uses relaively cheap, pleniul building

    maerials; creaes more jobs per megawat han any convenional ossil-uel based

    echnology; and already delivers low-cos elecriciy o homes across he world.7

    Concenraing solar power is experiencing a resurgence domesically. Te Solana

    CSP plan in Arizona and he Ivanpah CSP aciliies in Souhern Caliornia, whencompleed his year, will be wo o he larges CSP aciliies in he world.8 Tey

    will provide more han 500 megawats o power, or enough o power more han

    150,000 homes. Tese aciliies uncion by using he suns concenraed rays o

    hea uid o more han 700 degrees Fahrenhei and exploiing ha sored hea o

    power seam urbines.9 ogeher, hese wo plans will provide more han 4,000

    union consrucion jobs and more han 160 permanen operaion and maine-

    nance jobs in Arizona and Caliornia.10

    Developers in he European Union are already looking o build 20 gigawats, or

    GW, o concenraing solar power in Norh Arica by 2020.11 o realize he samekind o innovaion and growh in he Unied Saes, however, he Whie Houses

    2013 energy agenda will have o address many regulaory and marke-based

    obsacles ha are holding concenraing solar power back rom is ull poenial.

    We will describe hese obsacles in more deail in he nex secion.

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    5 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Concentrating solar power is a proven zero-carbon

    technology with high growth potential

    Concenraing solar power is no a new or experimenal echnology. Te rs CSP

    plans were buil in Caliornia in he 1980s and coninue o produce elecriciy

    oday.13

    Te American Recovery and Reinvesmen Ac o 2009 provided a bundle o

    incenives ha simulaed he U.S. solar indusry and excied is business leaders.

    In ac, Te Economistand Te New York imes boh published aricles or repors

    on solar echnologys revival in he summer o 2009.14 Also ha year, Sopogy, a

    Hawaiian solar-hermal echnology supplier, buil Holaniku, a 2 MW CSP dem-onsraion projec, a he Naional Energy Laboraory o Hawaii, and a Caliornia-

    based CSP rm called eSolar began operaion o he Sierra Sun ower, a 5 MW

    waer- and seam-ower demonsraion plan.15

    Existing, planned, and under-construction CSP plants worldwide

    2 5

    1

    1

    32

    1

    1

    5

    210

    2

    12

    22

    1

    2

    310

    24

    42

    1

    1

    3

    1

    6

    1

    498

    1

    3

    1

    2

    1817

    Operational

    Planned

    Source: CSP World, CASP World Map, available at http://www.csp-world.com/cspworldmap(last accessed May 2013).

    http://www.csp-world.com/cspworldmaphttp://www.csp-world.com/cspworldmap
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    6 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    In 2010 U.S. cumulaive CSP capaciy rom is 17 operaing CSP plans reached

    507 MW.16 In 2011 he Deparmen o Energy announced $3.35 billion in loan

    guaranees or our dieren projecs, adding more simulus o he U.S. CSP

    indusry.17

    Te oal worldwide watage produced by CSP has reached 2.5 GW.18

    Plans cur-renly under consrucion will generae an addiional 2 GW, and all plans ha are

    currenly in he pipeline a any sage o developmen will add beween 10 GW and

    16 GWhe equivalen o more han 30 ypical 500 MW gas-red power plans

    when complee in he nex ew years.19

    Measured by insalled capaciy, Spain coninues o lead he world CSP marke; is

    insalled CSP-generaing capaciy oaled 1,042 MW in 2012, compared o 509

    MW in he Unied Saes ha year. Bu Spain recenly suspended all o is renew-

    able-energy incenives by royal decree in an eor o cu governmen coss.20

    Meanwhile, he U.S. CSP indusry coninues o grow.21 In Arizona alone, more

    han 1 GW o CSP is eiher operaing, under consrucion, or planned.22

    In his years Sae o he Union address, Presiden Obama challenged he counry

    o double he deploymen o renewable-energy echnologies by 2020.23 Because

    concenraing solar power lacks supply-chain botlenecks and doesn require

    expensive maerial inpussee belowi has he poenial o grow exponenially

    in he worlds sunny regions over he coming decades.24 Condiions are ripe or

    he Unied Saes o ake he lead in he already-global and growing CSP marke.

    Concentrating solar power can be used for baseload power

    Concenraing solar power has many advanages over oher clean energy ech-

    nologies because i can generae elecriciy around he clock. By soring excess

    hea energy during he day and releasing i overnigh or during periods o cloudy

    weaher, concenraing solar power can generae sable baseload power 24 hours a

    day. Soring hea energy is 20 o 100 imes more cos-eecive han batery sorage

    o elecriciy, wih energy-conversion eciencies already exceeding 90 percen.25

    Signican advances have recenly been made in hea-sorage echnology, which

    could make CSP energy-producion levels even more sable. New ernary molen

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    7 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    sals using poassium calcium nirae, or CN-K, have a lower meling poin and pro-

    vide a larger emperaure range, beter sorage capabiliy, and enhanced saey.26

    Finally, concenraing solar power can be paired wih small naural gas-red

    plans o urher increase eciency and sabiliy. In 2010 Florida Power &

    Ligh Co. compleed consrucion o he Marin Nex Generaion Solar EnergyCener, a 75 MW gas-and-CSP hybrid aciliy near Indianown, Florida.27

    Whenever sunligh alls below he necessary level o run he aciliy, he on-sie

    naural-gas urbine can come online and, wihin a ew minues, accoun or he

    dierence, ensuring ha he plan can operae wih marke-expeced levels o

    reliabiliy in any weaher condiion.

    Concentrating solar power has few impacts on natural resources

    Unlike solar phoovolaics, which require large amouns o scarce maerials suchas silicon, copper indium selenide, or cadmium elluride, CSP plans are made

    rom low-cos and durable maerials such as seel and glass. In 2005, or example, a

    global scarciy o silicon caused supply-chain botlenecks in solar-cell manuacure

    and drove up he prices o panels considerably.28 CSP plans, however, when buil

    a scale, are inexpensive and less suscepible o supply chain botlenecks han are

    rare earh mineral-dependen phoovolaic power cells.29

    Furhermore, concenraing solar power uses less land per megawat han any

    oher orm o renewable energy,30 generaing 1.5 o 3 imes more power per

    acre han solar phoovolaic echnology.31 According o a repor by he Naional

    Renewable Energy Laboraory, CSP plans acually use abou he same amoun o

    land as ossil-uel-based generaion because ossil uel plans use addiional land

    or mining and exploraion as well as road building o reach he mines.32

    Addiionally, CSP plan componens such as ernary molen sals, receivers, and

    collecors coninue o make eciency gains, which decrease he capial and oper-

    aing expendiures or uiliy-scale projecs. Te ederal governmens SunSho

    CSP Research and Developmen program33 recenly announced a $55 million

    invesmen in 21 projecs o kicksar more breakhroughs in eciency.34

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    8 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Concentrating solar power creates jobs

    CSP plans are more capial inensive han radiional ossil-uel plans; heir

    insallaion is quick bu expensive. Once online, however, CSP plan operaing

    coss are exremely low since sunshine is ree. Invesmens in CSP plans hereore

    produce higher economic benes in erms o jobs creaed per uni o buil capac-iy han convenional elecriciy-generaion echnologies.35

    A repor by he Naional Renewable Energy Laboraory esimaes ha invesmen

    in 100 MW o concenraing solar power in 2015 will generae 4,000 job years, 94

    permanen jobs, and $628 million o economic oupu. (A job year is he equiva-

    len o one ull-ime job susained or one year.) Invesmen in a 100 MW radi-

    ional naural gas-ueled power plan, by comparison, would creae jus 330 job

    years, 13 permanen jobs, and $47 million o economic oupu.36 Tis means ha

    CSP invesmen creaes more han 10 imes more wealh and employmen per

    megawat han invesmens in he same amoun o ossil-uel power.

    Concentrating solar power is low-cost electricity

    Sudies show ha concenraing solar power is already cheaper han coal wih

    carbon capure and sorage, or CCS. I is also in many places cheaper han naural-

    gas-red generaion wihou

    any carbon capure a peak

    imes o he day.37

    In Caliornia, or example,

    he levelized energy cos, or

    LEC, o concenraing solar

    power is already as low as

    12 cens per kilowat-hour,

    compared o 19 cens per

    kilowat-hour or elecriciy

    generaed in he region by a

    simple-cycle naural gas-redplan.38 Concenraing solar

    power has he poenial o

    mee demand while lowering

    energy bills.

    The cost o CSP has allen dramatically and is set to all even urther

    The cost per kilowatt of existing and proposed CSP facilities has decreased as th

    cumulative number of built facilities has incerased globally. This mirrors the clas

    experience curve identified by technology experts.

    Source: National Renewable Energy Laboratory, Assessment of Parabolic Trough and Power Tower Solar Technology Cost and

    Performance Forecasts (2003). These are forward projections created by the National Renewable Energy Laboratory.

    0

    5000

    10000

    15000

    20000

    25000

    30000

    35000

    200 400 600 800 1000 1200

    2010USD/kW

    Cumulative Capacity (MW)

    Solar Thermal Cost

    Experience Curve

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    9 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    New ederal research and

    developmen iniiaives are

    aiming o drive he cos o

    concenraing solar power

    down o 6 cens per kilo-

    wat-hour.39

    Te NaionalRenewable Energy Laboraory

    concludes ha or every 1

    percen improvemen in

    he eciency o elecriciy

    generaion rom sunligh, CSP

    coss will all by a whopping

    7 percen.40 Te gure below

    shows he laboraorys predic-

    ions or he price pah o

    delivered elecriciy over henex decade.

    I curren rends coninue, he

    price o concenraing solar power will plumme in he coming decade.

    Meanwhile, he cos o building and operaing a convenional ossil-uel-based

    power plan has more han doubled over he pas 10 years and is projeced o

    rise even urher, as increasing global demand drives up he price o he limied

    supplies o ossil uels.42 Tis is one reason why invesmens in concenraing solar

    power are already oupacing invesmens in carbon-capure echnology.43

    Concentrating solar power is carbon-free electricity on a budget

    McKinsey & Company deermined ha concenraing solar power will be a much

    more cos-eecive way o generae carbon-ree elecriciy han coal wih capure

    and sorage. Using very conservaive assumpions, McKinsey predics ha by

    2015 i will be 3 imes more expensive o sequeser 1 meric on o carbon rom a

    coal plan han o avoid he emission o he same meric on o carbon by genera-ing elecriciy wih concenraing solar power.44

    Where uture cost reductions will come rom

    Breakdown of reductions in levelized cost of electricity (or LCOE) for CSP plants

    projected by 2025.

    Source: A.T. Kearney and ESTELA, 2010 via in International Renewable Energy Agency, Renewable Energy Technologies: Cost AnSeries, page 35. (See endnote 41.)

    0%

    20%

    40%

    60%

    80%

    100%

    18-22%

    10-15%

    21-33%

    45-60%

    40-55%reduction

    1st large-scale

    plants

    Capital cost

    reduction

    Efficiency

    improvements

    Economies

    of scale

    LCOE

    in 2025

    28-37%points

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    10 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Even by 2030, when many hope ha he marke or carbon

    capure and sorage echnology will have become widespread, i

    will sill be roughly wice as expensive per meric on o carbon

    avoided han concenraing solar power. Tis means ha as we

    begin o inernalize he coss o carbon polluion, CSP plans

    will emerge as more proable and less expensive han coal wihCCS echnology. According o he Global CSP Oulook 2009,

    concenraing solar power could mee up o 7 percen o he

    worlds projeced elecriciy needs in 2030, rising o 25 percen

    by 2050.45

    Cost o reducing 1 metric ton o CO2

    Concentrating solar power becomes profita

    a much lower carbon price than coal with c

    capture and storage

    Source: McKinsey & Company, Pathways to a Low-Carbon Economy2 of the Global Greenhouse Gas Abatement Cost Curve (2009). Curre

    converted using Translatum, The Textor Currency Converter, availabhttp://www.translatum.gr/converter/currency.htm?texaccept=site++accepts+conditions+at+http percent3A percent2F percent2Fccon

    com&val1=26&cur1=1.000000&cur2=0.724461 (last accessed May 20

    $0

    $20

    $40

    $60

    $80

    $100

    Coal with CCS

    Concentrated solar powe

    $96

    $36$41

    $1

    2015 2030

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    11 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Market and regulatory challenges

    to innovation and deployment of

    CSP technology

    Invesing in concenraing solar power is a cos-eecive way o reduce our depen-

    dence on oreign oil, improve domesic energy-price sabiliy, miigae carbon

    emissions, clean our air, promoe economic growh, and creae jobs. Bu a cenury

    o subsidies and special ax loopholes or convenional ossil-uel echnologies,47

    as well as he markes inabiliy o inernalize he real cos o rising carbon emis-

    sions, have kep he incumben ossil-uel-based echnologies locked in while

    keeping innovaive carbon-ree energy sources such as concenraing solar power

    locked ou o our energy sysem.

    CSP projec developers and he invesors who und hem ace boh marke-based

    and regulaory barriers prevening heir echnology rom achieving he scale o

    mainsream energy echnologies, including:

    1. Higher cost of financing: Because concenraing solar power is misakenly

    perceived as a new and risky echnology, nancing or i is more expensive han

    nancing or ossil uels. Risk premiums drive up ineres raes on loans.

    2. Unnecessary risk exposure: Alhough CSP plans do no use ossil uels o gen-

    erae elecriciy, hey are sill subjec o price volailiy since convenional-uel

    coss shape many regulaed regional elecriciy markes.

    3. No market value of environmental benefits: Despie he success o he

    Regional Greenhouse Gas Iniiaive in he Norheas and Caliornias new cap-

    and-rade sysem, here is sill no naionwide price or carbon polluion, despie

    he very real economic harms i is known o cause. Tis removes a major com-

    peiive advanage ha concenraing solar power would oherwise enjoy over

    ossil-uel-based generaion. In odays marke, naural gas is cheap.

    4. Capital intensive compared to fossil fuels: CSP plans have zero lieime uel

    coss, bu because concenraing solar power requires a grea proporion o

    capial upron raher han over he lie o he plan in he orm o uel coss,

    nancing he plans is more dicul.

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    12 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    5. Regulatory uncertainty and high transaction costs: Obaining regulaory

    approval or siing, generaion, ransmission, and environmenal auhorizaion

    is risky, burdensome, and ime-consuming because o he messy pachwork o

    local, sae, and ederal regulaory auhoriies.

    6. Lack of sufficient transmission planning: While ossil-uel plans are reeo locae wherever sucien ransmission and ransporaion inrasruc-

    ure is presen, CSP plans have an addiional locaion consrain: he sun.

    Unorunaely, here is ofen insucien ransmission inrasrucure o suppor

    concenraing solar power in he places where i works bes, and here are ew

    eecive ederal policies o assis in siing new ransmission.48

    For he Unied Saes o ake advanage o he economic opporuniies oered by

    rapid CSP echnology innovaion and deploymen, Congress mus work ogeher

    wih ederal agencies o address hese marke and regulaory barriers wih a com-

    prehensive and long-erm approach.

    Conrary o he assumpions o many, indusry leaders are increasingly conden

    ha overcoming barriers o CSP echnology innovaion and deploymen does no

    require an expensive governmen-led R&D push.49 Insead, a ew simple, low-cos

    policy reorms and indirec incenives50 can harness he power o Americas inno-

    vaors and invesors o reduce coss, leverage privae capial, creae jobs, and drive

    economic growhwihou increasing he size o governmen or he deci.51

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    13 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    Low-cost policy solutions to

    reduce risk, promote investment,

    and drive innovation

    As Congress and he Whie House develop separae approaches o combaing he

    deleerious eecs o global climae change hrough energy-policy reorm, hey

    should boh aim or a ew elegan, long-erm incenives ha will simulae he CSP

    indusrys nex phase o growh.

    In a 2008 CAP repor iled, A New Sraegy o Spur Energy Innovaion, auhors

    Peer Ogden, John Podesa, and John Deuch oulined in broad srokes he neces-

    siy o a marke-driven approach o energy-innovaion policy:

    Energy innovation, however, requires a market-driven rather than technology-

    driven approach to R&D, because new energy technologies are only useul

    insoar as they are adopted and deployed by private industry. Tis requires that

    the government work closely with the private sector and environmental regula-

    tors to develop and demonstrate technologies that can be protable given existing

    and anticipated market conditions and environmental standards. Tis also has

    the important benet o creating some real assets, such as production acilities

    and intellectual property that could enable the government to recoup a portion

    o its outlay.52

    Tis kind o approach, hey concluded, was more cos eecive in erms o value

    added per axpayer dollar spen and more eecive overall a meeing he goal o

    increasing marke paricipaion by privae-secor acors. Building upon his oun-

    daion, a marke-driven policy ramework or CSP innovaion should be guided

    by hree principles:

    Policies mus be ransparen and inclusive o all public and privae-secor

    sakeholders.

    Policies mus esablish and build upon he commercial easibiliy o he

    echnology.

    Policies mus be low cos and scally responsible.

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    Given he poliical realiies o odays economic recession and he rising ederal

    deci, policies need o be designed o harness he laen innovaion poenial o

    he privae secor, raher han increase direc ederal oulays. As Ogden, Podesa,

    and Deuch poin ou:

    the ederal government does not make adequate use o indirect innovationincentives such as guaranteed purchase, loan guarantees, and tax credits. ... By

    relying on direct cost reimbursement, the ederal government increases the risk

    that it will end up underwriting the development and demonstration o technolo-

    gies that are not commercially viable, as was the case with the U.S. Synthetic

    Fuels program.53

    In any economic ime, smar incenives or high-ech should be easy o adminiser

    and should creae more socioeconomic benes han he coss hey impose on

    axpayers. Te incenives oulined here or CSP echnology mee his sandard. An

    analysis by he Naional Renewable Energy Laboraory showed ha invesmenin CSP resuled in 10 imes more economic oupu and 4 imes more governmen

    revenue han did similar invesmens in gas-red generaion.54

    Existing policy framework

    Progressives in Congress and in ederal agencies have already creaed a number

    o policy ools ha can help address some o he challenges described above and

    accelerae CSP innovaion and deploymen, including:

    Loan guarantees: Te embatled ile XVII Loan Guaranee Program grans he

    Deparmen o Energy he auhoriy o guaranee loans ha suppor early com-

    mercial use o advanced echnologies, including concenraing solar power.55

    Regulatory fast tracking: Former Secreary o he Inerior Ken Salazar

    announced ha he Deparmen o he Inerior would se aside 285,000 acres

    o public lands in he sunny Souhwes or solar research and expedied envi-

    ronmenal approval under a program called solar energy zones.56 Te zones

    have already helped spur a boom in solar-power building, wih 27 projecsannounced since 2008.57

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    Research, development, and demonstration: Te Naional Solar Termal es

    Faciliy is an R&D parnership among several naional labs aimed a providing a

    es bed and plaorm where various indusry players can come ogeher o col-

    laborae around innovaion.58

    Manufacturing innovation: Te 48C ederal manuacuring ax credi providesa 30 percen ax credi o manuacurers who build CSP componen pars. Te

    program unding is limied, however, so no all companies are able o access he

    ax credi each year.59 Te unds delivered in jus he rs round o credis under

    Secion 48 are esimaed o have creaed nearly 60,000 manuacuring jobs.60

    Investment tax credits: Te Business Energy Invesmen ax Credi, or IC,

    provides up o a 30 percen ax cu o companies developing CSP generaion

    aciliies.61 Addiionally, he credi was made more useul o small companies

    hrough Secion 1603 o he American Recovery and Reinvesmen Ac, which

    allows companies ha are no ye proableand hereore don ye have anyax liabiliyo ake cash grans in lieu o ax credis.62 Many U.S. solar rms

    have exploied his bene.

    State policies: Several sae incenives lower he insallaion coss or CSP

    developers, including sae renewable energy porolio sandards, producion ax

    credis, and ne meering provisions.63

    Despie his poen array o policies, many o hese measures are emporary and

    narrowly ailored. Innovaion and cos reducion in capial-inensive indusries

    such as elecriciy generaion require long lead imes and sable policy environ-

    mens wihin which companies can compee. Te exising cluser o ederal and

    sae incenives is sill oo unpredicable o atrac mos mainsream invesors.

    Policy reforms to reduce risk and the cost of capital

    Eighy percen o he coss o a CSP plan come rom consrucion and associaed

    deb, while only 20 percen o he coss come rom operaion and mainenance

    over is lieime.64

    On he one hand, his relaively high upron capial cos meansha once he loans are repaid afer 25 or 30 years, he coss o generaed elecriciy

    becomes exremely lowaround 3 cens per kilowat-hour.65 On he oher hand,

    he upron capial inensiy makes securing low-cos nancing one o he mos

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    criical botlenecks in he developmen o new CSP projecs, according o Tomas

    Mancini, program manager or CSP a Sandia Naional Lab. 66

    Tis is because CSP plan developers mus ake ou larger loans a he ouse o a

    projec, and mus pay higher raes o ineres on hose loans due o he invesors

    increased risks when nancing new echnologies compared o enrenched, saus-quo echnologies. Te resul is ha simply he cos o nancing, or even obaining

    loans, represens a signican porion o he nal cos o elecriciy or concen-

    raing solar powermore so han any energy echnology oher han nuclear.67

    Indeed, an analysis by he Inernaional Renewable Energy Agency, or IRENA,

    ound ha o 30 dieren cos ceners in he consrucion o an average CSP plan,

    he cos o nancing made up he ourh-larges source o he cos, accouning or

    6 percen.68

    CSP developers ace a broad se o risks when nancing a projec, saring wih he

    mispercepion ha he echnology is new and hereore rie wih uncerainy. Willhe coss and imeline o consrucion be predicable? Will he siing auhoriza-

    ion or environmenal risk assessmen creae unexpeced delays? Will appraisers

    accuraely value he projec? Will he projec have access o he ransmission grid

    and power markes? Will he regulaory or poliical incenives change suddenly?

    Will here be a price on carbon or a credi or carbon-ree elecriciy?

    Each o hese quesions increases he overall risk perceived by invesors, and

    each drives up he cos o nancingand hereore he cos o elecriciyby a

    small bu signican amoun. As a resul, promoing cerainy in CSP markes is a

    powerul way o reduce he overall cos and increase he availabiliy o echnology

    in he Unied Saes.

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    Te able below, aken rom an NREL analysis, shows ha or every 1 percen

    reducion in he inernal rae o reurn demanded by invesors, he nal delivered

    cos o a kilowat-hour o CSP elecriciy drops by hal a cen per kilowat-hour.69

    Table 1

    Risk premium and cost o capitalThe cost of capital has a large influence on the final levelized cost

    of electricity for concentrating solar thermal

    Cost o capital

    (internal rate o return)

    Projected levelized cost o delivered

    electricity in 2020

    Percent dierence

    13% $0.051 per kWh -7.1%

    14% $0.055 per kWh Base case

    15% $0.059 per kWh +7.6%

    Note: A 1 percent increase in the cost of capital leads to a 7.6 percent increase in the projected levelized cost of delivered electricity.

    Source: National Renewable Energy Laboratory, Assessment of Parabolic Trough and Power Tower Solar Technology Cost and PerformanceForecasts.70

    Below are some o he numerous policy opions ha exis o miigae he risk el

    by invesors, hereby reducing he cos o capial o projec developers and he

    cos o nal delivered elecriciy.

    Establish an independent clean energy deployment bank

    One o he mos powerul proposals or increasing privae capial ows and reduc-

    ing cos is o creae a clean energy deploymen bank wih he auhoriy o back

    privae loans or CSP and oher carbon-ree energy projecs.71

    An independen green bank capialized a $10 billion could use a variey o nan-

    cial insrumens o simulae $100 billion or more in privae invesmen oward

    CSP projecs and componen manuacure.72 In heir issue brie iled, A Green

    Bank Is he Righ ool or Jobs, CAP expers Richard W. Caperon and Bracken

    Hendricks laid ou a comprehensive se o principles or how such an insiu-ion should uncion. Included are recommendaions ha he bank be governed

    independenly o he Deparmen o Energy; have exibiliy o use a wide range o

    nancial insrumens; and ocus on innovaion, manuacure, and deploymen.73

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    Te increased availabiliy o privae-capial invesmen would encourage com-

    panies o compee o produce he bes echnologies a he lowes cosa major

    prerequisie or successul innovaion in CSP echnology.

    Implement CLEAN contracts or feed-in tariffs

    Since concenraing solar power does no require any uel, i should heorei-

    cally experience no uel-price volailiy whasoever. Since many uiliies across

    he naion are required o use avoided-cos pricing, however, hey ulimaely ie

    he cos o clean energy o he price o oher ossil uels. Tis means ha many

    regulaed uiliies se he price o elecriciy rom nonradiional sources based

    on he esimaed cos hey would have had o spend on he same elecriciy rom

    radiional sourcesno he acual cos o solar. Tis creaes he poenial or siu-

    aions in which he price o elecriciy generaed rom CSP would be priced based

    on he cos o ossil uels, unairly exposing raepayers and invesors o he risko long-erm ossil-uel price increases. Exposing clean-ech invesors o his risk

    unairly robs raepayers and projec developers o he price-sabiliy benes ha

    predicable solar energy should provide.74

    CLEANwhich sands or Clean Local Energy Available Nowconracs, also

    known as eed-in aris, help power-plan developers reduce heir risk exposure

    by creaing a guaraneed price or clean elecriciy o a se period o ime. Moving

    regulaed uiliies oward a price guaranee or carbon-ree elecriciy would elimi-

    nae unnecessary risk exposure and reduce he cos o nancing concenraing

    solar power, ulimaely lowering he cos. Since uiliies are regulaed mosly a he

    sae level, such an eor would require a pachwork o sae policies.75

    Reinstate the Department of Energys Loan Guarantee Program

    Since 2011 he Deparmen o Energy has awarded a oal o $4.235 billion in loan

    guaranees o ve CSP projecs accouning or 1.312 GW o oupu.76 Lae las

    year, however, he Loan Guaranee Program was erminaed because Congress

    misundersood is purpose.77

    Congress should, however, revive he program; sincei leverages privae capial, his approach coss axpayers nohing unless projec

    developers deaul. Simply pu, under his policy, he governmen helps ake on

    some o he risk oherwise borne by he projec developers and invesors, hus

    signaling condence in he CSP indusry and reducing he cos o nancing.

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    Price carbon

    One o he mos powerul hings he ederal governmen can do o incenivize

    clean energy echnologies such as concenraing solar power is make polluers pay

    or heir amospheric carbon emissions. Te carbon-ree naure o concenraing

    solar power should be a major compeiive advanage over incumben ossil-uelechnologies, bu because ossil-uel companies can emi carbon polluion a

    no cos in mos pars o his counryCaliornia and mos Norheasern saes

    exceped78concenraing solar power is robbed o ha inheren srucural

    advanage. Tis is why a robus and equiable cap-and-rade sysem or carbon ax

    needs o be a criical cenerpiece o energy legislaion in he 113h Congress.

    Policy reforms to streamline regulation and tax treatment

    In addiion o xing he marke ailures lised above, here are many areas whereregulaory ailures also add o he coss o CSP projecs and sall he echnol-

    ogys progress.

    CSP developers ace a genuine labyrinh o regulaory obsacles. Tey mus seek

    regulaory approval or siing, grid connecion, power producion, and environ-

    menal perormance. Tis burden can add millions o dollars in legal ees, unex-

    peced delays, and shor-erm nancing coss o a projecs budge. In paricular,

    he siing o new ransmission lines, which ofen involves overlapping jurisdicions

    and many local, sae, and ederal agencies, creaes a major regulaory uncerainy

    or projec developers.

    Furher, sae and ederal ax reamen o capial disproporionaely aecs

    capial-inensive invesmens such as concenraing solar power, compared o

    expense-inensive convenional coal or gas-red generaion. Tis is because CSP

    plans mus nance more o heir capial coss upron han convenional power

    plans. According o he Naional Renewable Energy Labs analysis:

    i a conventional ossil power plant were required to purchase all o its uel

    upont and the uel were treated as a capital investment om a tax and nanc-ing standpoint, the cost of power would be more than double. I this upont

    capital investment penalty could be eliminated, [concentrated solar] power could

    compete directly with the most advanced and ecient ossil uel technologies.79

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    While acceleraed depreciaion, implemened under he Energy Policy Ac o

    2005 and improved under he American Recovery and Reinvesmen Ac, has

    helped miigae his burden somewha,80 he exising policies are no sucienly

    long erm or predicable o oser invesor condence, especially higher up on he

    supply chain. Acceleraed depreciaion allows he owners o power plans o book

    he lieime cos o depreciaion o heir inrasrucure in a shorer period o ime;or example, wo or ve years insead o 10 or 20.

    Below are some o he simple regulaory and ax changes on he ederal level ha

    can eecively miigae he unnecessary risks and nancial burdens ha currenly

    inhibi invesmen and innovaion around CSP echnology.

    Tax reform for capital-intensive clean energy technologies

    As CAPs Richard Caperon and Sima Gandhi showed in heir 2010 repor iled,Americas Hidden Power Bill, U.S. ax policy heavily avors ossil-uel compa-

    nies, giving hem an unair advanage in energy markes.81 Giving ax breaks o

    CSP projecs o he same magniude as hose ha have radiionally been given o

    ossil-uel plans would be a powerul move oward leveling he playing eld or

    his echnology.

    Leveling he axaion environmen in his way would cos he ederal governmen

    a airly small amoun o money bu would have large impacs on driving down he

    nal cos o elecriciy and increasing scalabiliy by driving more privae capial

    and reducing he cos o nancing. Te experience o he Solar Energy Generaing

    Sysems, or SEGS, aciliy in Caliornia showed ha a 1 percen reducion in he

    propery-ax rae on he value o he solar propery corresponded wih a decrease

    o approximaely 10 percen in he nal cos o he delivered energy.82

    Guarantee transmission-grid connection for solar projects

    In June 2010 he Deparmen o he Ineriors Bureau o Land Managemen, or

    BLM, released a renal schedule or solar energy righ-o-way auhorizaions onpublic landsessenially a se o guidelines explaining when and under wha

    circumsances grid connecion could be expeced or solar projecs.83 Tis mea-

    sure has provided much-needed cerainy abou he cos o siing CSP projecs

    on public lands.

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    o be ruly eecive, however, his schedule mus be coupled wih a guaranee

    or CSP grid connecion. While he deparmen is currenly engaged in ongoing

    ransmission planning eors,84 Congress needs o empower he Deparmen o

    he Inerior and he Federal Elecriciy Regulaory Commission o ake a more

    acive role in sreamlining permiting and ransmission issues or clean echnolo-

    gies such as concenraing solar power.

    Many counries ha have eed-in-ari laws also require grid operaors and uiliy

    companies o guaranee grid connecion o renewable-energy projecs ha mee

    basic crieria. In he Unied Saes, access o he ransmission grid is one o he

    hardes seps in he projec developmen process. Tis complicaion increases

    he cos o capial and he nal cos o elecriciy. When energy enrepreneur .

    Boone Pickens bough 667 wind urbines in 2009 wih plans o insall hem in his

    home sae o exas,85 or example, his company proved unable o obain approval

    or grid connecion a his sie o choice. Financial problems resuled or his rm,

    ulimaely orcing him o abandon he projec alogeher.

    o avoid his uncerainy, he seven souhwesern saes ha have he bes CSP

    developmen poenial should ocus on coordinaing aciviies a a regional level

    o ensure land wih high CSP poenial is well served by necessary ransmission-

    line developmen planning.86

    Going one sep urher, implemening a guaraneed grid-connecion policy in

    he Unied Saes, as was done in Europe wih wind energy, would be a powerul

    acceleraor o CSP developmen.87 Such policy is dicul given he dissociaed

    srucure o local, sae, and ederal auhoriies, bu Congress his year has he

    opporuniy o x his broken aspec o energy policy. o do so would remove

    one o he larges quesion marks in he projec-developmen process, reducing

    boh risk and cos.

    Stabilize and monetize existing tax incentives

    Tanks o he Energy Policy Ac o 2005 and he American Recovery and

    Reinvesmen Ac, a number o ax credis already exis (see he lis on page 14).Many o he incenives currenly in place, however, such as he 48C manuacur-

    ing ax credi and he invesmen ax credi, are eiher emporary, limied in supply,

    or subjec o requen reauhorizaion. Tis uncerainy ruins he planning process

    or CSP developers.

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    A CSP pars manuacurer considering plan consrucion in he Unied Saes,

    or example, will wan o know ha here will be demand or hose pars 10 or 15

    years in he uure. U.S. energy policy should ocus on srenghening he sabiliy

    o incenives or manuacurers, projec developers, and power buyers so hey can

    rely on hese policies in he conex o long-erm business planning.

    Furhermore, he level o unding or he 48C program o dae has only been su-

    cien o cover abou one-hird o he demand rom advanced energy-echnology

    manuacurers.88 Congress should ully und he 48C manuacuring ax credi

    and remove he cap, as was proposed in Sen. Sherrod Browns (D-OH) Securiy in

    Energy and Manuacuring, or SEAM, Ac o 2012.89

    Congress should also reauhorize he U.S. Deparmen o reasury 1603 cash

    grans or renewable energy in lieu o ax credis or 10 years and add addiional

    language o expand he 1603 program so i can be applied o 48C ax credis in

    addiion o he invesmen ax credi. Te 1603 gran has become he cener-piece o many solar business plans; CSP rms need assurance ha ederal budge

    sequesraion will no dilue he payou o approved grans.90

    Finally, Congress should heed he message o Presidens Obamas 2013 Sae o

    he Union address and make he renewable energy producion ax credi perma-

    nen, reundable, and applicable o concenraing solar power or 10 years.91

    Further streamline regulatory approval by creating

    an interagency one-stop shop for solar power

    Te coss o obaining regulaory approval are subsanial and can add millions o

    dollars o he cos o CSP projec developmen. Projec developers mus obain

    regulaory approval rom agencies as diverse as he Environmenal Proecion

    Agency, he Deparmen o he Inerior, he Deparmen o Energy, and he

    Federal Energy Regulaory Commission. Depending on locaion, hey mus also

    seek cericaion rom various municipal, couny, and sae auhoriies. In some

    cases hese approval processes can slow projecs down by monhs or even years.

    Congress should expand upon he curren BLM solar zones as-racking processo creae a rue one-sop shop ineragency approval process o cu coss, reduce

    regulaory risks, and increase he ow o privae capial.

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    Regulatory transparency

    Uncerainy abou he regulaory environmen and availabiliy o incenives

    caused a lo o problems or he rs CSP projec in Caliornia in he 1980s.92

    Arbirary resricions on he allowed size o CSP plans and he imerame or

    consrucion were writen ino he legislaion. Tis dramaically increased hecos o nancing by prevening economies o scale and acceleraing consrucion

    schedules beyond he cos-ecien speed.93 Incenives in he 113h Congresss cli-

    mae and energy bill should have a long-erm approach ha esablishes cerainy

    in CSP markes.

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    Conclusion

    Concenraing solar power promises o become a keysone echnology in

    Americas renewable-energy porolio. CSP enjoys rapidly alling coss, ew botle-

    necked supply chains, relaively low land and waer requiremens, and a rapidly

    growing inernaional marke. I presens a grea opporuniy or U.S. energy and

    manuacuring indusries.

    Amid such exciemen, we mus sill ake care o avoid picking winners and losers

    in he naional energy marke; concenraing solar power is jus one o a menu oclean energy opions. Low-Carbon Innovaion, a Cener or American Progress

    repor rom 2010, discussed he nuanced role o governmen invesing in new

    echnologies wihou picking winners and losers:94

    America is unique among industrialized nations in or our disdain or the term

    industrial policy. For many Americans, the very term conjures up an image

    o managed and centrally planned economies that cuts against the grain o our

    political and economic culture. In act, the term is mostly used in other countries

    as shorthand or a comprehensive competitiveness and jobs strategy, rather than

    as an indication o central planning or a desire to pick winners and losers.

    Even in a policy environment shaped by diferentiated state policies and diverg-

    ing political interests, it should nonetheless be possible to develop a common

    amework or clean-tech expansion, grounded within deep ederalist traditions

    o economic development, to help speed the growth o a truly national market or

    advanced low-carbon energy technologies.

    In keeping wih his philosophy, he reorms in his paper are all designed o pu

    concenraing solar power on even ooing wih oher renewable-energy echnolo-gies and enrenched ossil-uel compeiors. Nearly all o he recommendaions pre-

    sened hererom pricing carbon o esablishing a ederal clean energy invesmen

    und and addressing ransmission and cos-o-capial issueswould bene he

    enire renewable-energy indusry and urher he cause o a clean energy economy.

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    While his repor is ocused on bringing some much-deserved atenion o con-

    cenraing solar power, i is imporan o reierae ha no single echnology will be

    he sole soluion o climae change. Concenraing solar power is jus one o many

    ools ha we mus develop and explore as humaniy grapples wih he exisenial,

    environmenal, and economic hrea o anhropogenic climae change.

    Te reorms proposed here are designed o promoe ercer and healhier compei-

    ion among clean energy echnologies and companies, while ensuring ha all o

    hese nascen indusries can engage in air compeiion wih he ossil-uel indusry.

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    About the authors

    Sean Pool is a Policy Analys and Managing Edior o Science Progress, he Cener

    or American Progresss online science and echnology policy journal. Previously,

    Sean suppored CAPs energy eam, ocusing on regional and sae-level climae-

    change policies, clean energy innovaion neworks, and enhancing U.S. indusrial

    compeiiveness hrough research, commercializaion, and deploymen o new

    echnology. Beore coming o American Progress, Sean researched inernaional

    volunary and policy-driven carbon markes a he Yale Cener or Environmenal

    Law and Policy, a he Yale Oce o Susainabiliy, and a he Ausralia NaionalUniversiy Green Oce in Canberra. Sean holds a bachelors degree in environ-

    menal engineering and inernaional sudies rom Yale Universiy.

    John Dos Passos Coggin is a reelance wrier and environmenal analys. A

    graduae o Yale Universiy, he holds a masers degree in public policy rom he

    Universiy o Maryland. He has worked in he solar indusry as an incenives spe-

    cialis and worked a several environmenal nonpros over he pas decade. His

    rs book, an auhorized biography o legendary Florida poliician Lawon Chiles,

    iled Walkin Lawton, was published las year. His second book is in developmen.

    Acknowledgements

    Te auhors would like o hank Daniel J. Weiss, who accidenally launched his

    repor hinking i would be a shor column, as well as Kae Gordon and Jonahan

    Moreno or heir paience, Richard Caperon and Darryl Banks or heir exper

    guidance.

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    27 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    1 Joseph Romm, The Technology That Will Save Human-ity, Salon.com, April 14, 2008, available at http://www.salon.com/news/eature/2008/04/14/solar_electric_thermal/index1.html.

    2 Shane McGlaun, IBM scientists research concentrated

    solar radiation power source, SlashGear, April 22, 2013,available at http://www.slashgear.com/ibm-scientists-research-concentrated-solar-radiation-power-source-22278702/.

    3 UnMuseum, Archimedes and the Burning Mirror, avail-able at http://www.unmuseum.org/burning_mirror.htm (last accessed April 2013).

    4 Nextera Energy Resources, Fact Sheet: Solar ElectricGenerating Systems, available at http://www.nexter-aenergyresources.com/pd_redesign/segs.pd(lastaccessed May 2013); Nextera Energy Resources, SolarElectric Generating Systems, available at http://www.nexteraenergyresources.com/content/where/portolio/pd/segs.pd(last accessed May 2013).

    5 Britt Childs Staley and others, Juice rom Concentrate:Reducing Emissions with Concentrating Solar Thermal

    (Washington: World Resources Institute, 2009).

    6 Dr. Christoph Richter, Sven Teske, and Rebecca Short,Concentrating Solar Power: Global Outlook 09(Washington: Greenpeace, 2009), available at http://www.greenpeace.org/international/Global/interna-tional/planet-2/report/2009/5/concentrating-solar-power-2009.pd.

    7 Ibid.

    8 Kathleen Zipp, Ivanpah Solar Project is More than 92%Complete, Solar Power World, May 22, 2013, availableat http://www.solarpowerworldonline.com/2013/05/ivanpah-solar-project-is-more-than-92-complete/.

    9 Kathleen Zipp, Worlds Largest Concentrated SolarPlant, Solar Power World, July 17, 2012, available athttp://www.solarpowerworldonline.com/2012/07/

    worlds-largest-concentrated-solar-plant/.

    10 Andrew Proteus, Green Jobs & Solar Power At Night:Abengoas 280 MW Solana CSP Plant Nearly Ready,December 1, 2012, available at http://cleantechnica.com/2012/12/01/green-jobs-solar-power-at-night-abengoas-280-mw-solana-csp-plant-nearly-ready/#91ybui7OmJbAo3zD.99;BrightSource Ivanpah,available at http://ivanpahsolar.com/(employmentgures summed).

    11 James Kanter, Solar Power and Geopolitics in theMediterranean, The New York Times, February13, 2009, available at http://green.blogs.nytimes.com/2009/02/13/solar-power-and-geopolitics-in-the-mediterranean/.

    12 CSP World, CSP World Map, available at http://www.csp-world.com/cspworldmap(last accessed May 2013).

    13 NextEra Energy Resources PortolioFuel Type,available at http://www.nexteraenergyresources.com/pd_redesign/portolio_by_uel.pd(last accessed May2013).

    14 The Economist, Social-thermal technology: Theother kind o solar power, June 4, 2009, available athttp://www.economist.com/science/tq/displaystory.cm?story_id=13725855; James Kanter, Bigger Roleo Concentrating Solar Power?, The New York Times,June 3, 2009, available at http://greeninc.blogs.nytimes.

    com/2009/06/03/bigger-role-or-concentrating-solar-power/.

    15 The Economist, Social-thermal technology: Theother kind o solar power, June 4, 2009, available athttp://www.economist.com/science/tq/displaystory.cm?story_id=13725855; James Kanter, Bigger Roleo Concentrating Solar Power?, The New York Times,June 3, 2009, available at http://greeninc.blogs.nytimes.com/2009/06/03/bigger-role-or-concentrating-solar-power/.

    16 Beln Gallego and others, The history o American CSP:A timeline (Last Vegas: CSP Today, 2012), available atwww.csptoday.com/usa/pd/USAtimeline.pd.

    17 CSP Today, US Concentrated Solar Power Industryreceives its biggest boost yet by American DoE, Pressrelease, June 17, 2011, available at http://www.renew-

    ableenergyworld.com/rea/partner/rst-conerences/news/article/2011/06/us-concentrated-solar-power-in-dustry-receives-its-biggest-boost-yet-by-american-doe.

    18 CSP World, CSP World Map.

    19 Projects Tracker Overview, available at http://social.csptoday.com/tracker/projects/table.

    20 Oliver Ristau, Spain suspends FITs, PV Magazine,January 28, 2012, available at http://www.pv-magazine.com/news/details/beitrag/spain-suspends-ts_100005605/#axzz2RJiCNQ6c.

    21 Gallego and others, The history o American CSP.

    22 Beatriz Gonzalez, Arizona Corporation Commissionto talk uture growth at CSP Today USA, CSP Today,February 18, 2013, available at http://social.csptoday.

    com/technology/arizona-corporation-commission-talk-uture-growth-csp-today-usa.

    23 Daniel J. Weiss, State o the Union; More Investmentsin Clean Energy, Less Carbon Pollution, Center orAmerican Progress, February 13, 2013, available athttp://www.americanprogress.org/issues/green/news/2013/02/13/53267/state-o-the-union-more-investments-in-clean-energy-less-carbon-pollution/.

    24 Richter, Teske, and Short, Concentrating Solar Power:Global Outlook 09.

    25 Joe Romm, Solar baseload outshines clean coaland it always will, Climate Progress blog, Novem-ber 21, 2008, available at http://climateprogress.org/2008/11/21/solar-baseload-outshines-clean-coal-and-it-always-will/; NREL, Assessment o Parabolic

    Trough and Power Tower Solar Technology Cost and

    Perormance Forecasts (2003), available at http://www.nrel.gov/docs/y04osti/34440.pd.

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    28 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    26 Emilio Iglesias Sola, Concentrated Solar Power: Next-Generation Technologies Poised to Ramp up Utility-Scale Production, Renewable Energy World, January 3,2013, available at http://www.renewableenergyworld.com/rea/news/article/2013/01/concentrated-solar-power-next-generation-technologies-poised-to-ramp-up-utility-scale-production.

    27 Gallego and others, The history o American CSP.

    28 John Gartner, Silicon Shortage Stalls Solar, Wired,March 28, 2005, available at http://www.wired.com/

    science/planetearth/news/2005/03/67013.

    29 Sun Rays Are Free, Conventional Solar Cell Materials,April 18, 2009, available at http://sunraysareree.com/articles/2009/04/18/conventional-solar-cell-materials.

    30 Peter Viebahn and others, Final report on technicaldata, costs, and lie cycle inventories o solar thermalpower plants (DLR and CIEMAT, 2008).

    31 For comparison, see Bernadette Del Chiaro, SarahPayne, and Tony Dutzik, On the Rise: Solar ThermalPower and the Fight Against Global Warming (Boston:Environment America, 2008), available at http://www.environmentamerica.org/reports/ame/rise-solar-ther-mal-power-and-ght-against-global-warming; David R.Mills and Robert G. Morgan, Solar Thermal Electricity asthe Primary Replacement or Coal and Oil in U.S. Gen-eration and Transportation, September 2009, available

    at http://www.wired.com/images_blogs/wiredscience/les/MillsMorganUSGridSupplyCorrected.pd

    32 NREL, Concentrating Solar Power: Energy From Mirrors(2001), available at http://www.nrel.gov/docs/y01o-sti/28751.pd.

    33 U.S. Department o Energy, SunShot ConcentratingSolar Power Research and Development, available athttp://www1.eere.energy.gov/solar/sunshot/nancial_opps_detail.html?sol_id=452 (last accessed May 2013).

    34 Sola, Concentrated Solar Power: Next-Generation Tech-nologies Poised to Ramp up U tility-Scale Production.

    35 L. Stoddard, J. Abiecunas, and R. OConnell, Economic,Energy, and Environmental Benets o ConcentratingSolar Power in Caliornia (Washington: NREL, 2006),available at http://www.nrel.gov/Fdocs/Fy06osti/

    F39291.pd.

    36 Ibid.

    37 Ibid; McKinsey & Company, Pathways to a Low-CarbonEconomy: Version 2 o the Global Greenhouse GasAbatement Cost Curve (2009).

    38 Stoddard, Abiecunas, and OConnell, Economic,Energy, and Environmental Benets o ConcentratingSolar Power in Caliornia.

    39 Sola, Concentrated Solar Power: Next-Generation Tech-nologies Poised to Ramp up U tility-Scale Production.

    40 NREL, Assessment o Parabolic Trough and PowerTower Solar Technology Cost and Perormance Fore-casts.

    41 Ibid; International Renewable Energy Agency, Renew-able Energy Technologies: Cost Analysis Series (2012),available at http://www.irena.org/DocumentDownloads/Publications/RE_Technologies_Cost_Analysis-CSP.pd.

    42 Joe Romm, Power Plants Cost Double Since2000Eciency Anyone?, Climate Progress blog,February 29, 2008, available at http://climateprogress.org/2008/02/29/power-plants-costs-double-since-2000-eciency-anyone/.

    43 Romm, Solar baseload outshines clean coaland italways will.

    44 McKinsey & Company, Pathways to a Low-CarbonEconomy; Translatum, The Textor Currency Converter,available at http://www.translatum.gr/converter/cur-rency.htm?texaccept=site+operator+accepts+conditions+at+http percent3A percent2F percent2Fcconv.textor.com&val1=26&cur1=1.000000&cur2=0.724461(last accessed May 2013).

    45 Richter, Teske, and Short, Concentrating Solar Power:

    Global Outlook 09.

    46 McKinsey & Company, Pathways to a Low-CarbonEconomy; Translatum, The Textor Currency Converter.

    47 Rebecca Leber, Happy 100th Birthday, Big OilTax Breaks, Climate Progress blog, March 1,2013, available at http://thinkprogress.org/cli-mate/2013/03/01/1654501/oil-subsidies-century/.

    48 Solar Feeds, BLM restrictions cause solar thermal toseek private land, available at http://www.solareeds.com/blm-restrictions-cause-solar-thermal-to-seek-private-land/ (last accessed May 2013).

    49 Michael Lotker, Barriers to Commercialization o Large-Scale Solar Electricity: Lessons Learned rom the LUZExperience (Washington: Sandia National Laboratories,1991); Peter Ogden, John Podesta, and John Deutch, A

    New Strategy to Spur Energy Innovation (Washington:Center or American Progress, 2008); Joe Romm, DoWe Need a Massive Government Program to GenerateBreakthroughs to Make Solar Energy Cost-Compet-itive?, Climate Progress, April 10, 2008, available athttp://climateprogress.org/2008/04/10/do-we-need-a-massive-government-program-to-generate-break-throughs-to-make-solar-energy-cost-competitive/.

    50 Ogden, Podesta, and Deutch, A New Strategy to SpurEnergy Innovation.

    51 Lotker, Barriers to Commercialization o Large-ScaleSolar Electricity; Romm, Do We Need a Massive Gov-ernment Program to Generate Breakthroughs to M akeSolar Energy Cost-Competitive?

    52 Ogden, Podesta, and Deutch, A New Strategy to SpurEnergy Innovation.

    53 Ibid.

    54 Stoddard, Abiecunas, and OConnell, Economic,Energy, and Environmental Benets o ConcentratingSolar Power in Caliornia.

    55 Solar Energy Industries Association, Loan GuaranteeProgram, available at http://www.seia.org/policy/nance-tax/loan-guarantee-program (last accessedMay 2013).

    56 Solar Energy Development Programmatic EIS, SolarEnergy Zones, available at http://solareis.anl.gov/sez/index.cm (last accessed May 2013).

    57 Susan Kraemer, Obama Drives Clean Energy Boom OnPublic Lands, Earth Techling blog, January 10, 2012,available at http://www.earthtechling.com/2012/01/

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    29 Center or American Progress | Fulilling the Promise o Concentrating Solar Power

    58 Sandia National Laboratories, ConcentratingSolar Power (CSP), available at http://energy.sandia.gov/?page_id=2445 (last accessed May 2013).

    59 Database o State Incentives or Renewables &Eciency, Qualiying Advanced Energy Manuac-turing Investment Tax Credit, available at http://dsireusa.org/incentives/incentive.cm?Incentive_Code=US52F&re=1&ee=1 (last accessed May 2013).

    60 Sherrod Brown Senator or Ohio, Sen. BrownIntroduces Legislation to Expand Manuacturing Tax

    Credit, Press release, May 6, 2010, available at http://www.brown.senate.gov/newsroom/press/release/sen-brown-introduces-legislation-to-expand-manuactur-ing-tax-credit.

    61 Richard W. Caperton, Good Government Investmentsin Renewable Energy (Washington: Center or Ameri-can Progress, 2012), available at http://www.american-progress.org/issues/green/report/2012/01/10/10956/good-government-investments-in-renewable-energy/.

    62 Solar Energy Industries Association, Issues & Policies:Solar Manuacturing Incentives, available at http://www.seia.org/policy/manuacturing-trade/solar-manu-acturing-incentives (last accessed May 2013).

    63 Database o State Incentives or Renewables & E-ciency, Home page, available at http://dsireusa.org/(last accessed May 2013).

    64 Richter, Teske, and Short, Concentrating Solar Power:Global Outlook 09.

    65 Ibid.

    66 The Economist, Social-thermal technology: The otherkind o solar power.

    67 Institute or Energy Research, Electric GeneratingCosts: A Primer, August 22, 2012, available at http://www.instituteorenergyresearch.org/2012/08/22/electric-generating-costs-a-primer/.

    68 International Renewable Energy Agency, Re