solar thermal power - Greenpeace

US Policy Priorities
Three trends are giving solar thermal power some market momentum in the US. Firstly, a deregulated power generation system
has inspired state-mandated Renewable Energy Portfolio Standards, the right of interconnection and the sale of green power.
Secondly, concerns about implementing the Clean Air Act and implementing climate change emissions reductions are driving
use of cleaner technologies, including renewable energy. And thirdly, the private sector has been advancing solar thermal
technologies on its own, with a bare minimum of federal support and some at a state and local government level.
Emerging technologies need sustained orderly development, however, to attract further private capital, scale-up manufacturing
and establish installation and service capabilities to meet expanding market demand. Six policies are required to expand the
market for solar thermal and to achieve the economies-of-scale required in manufacturing, system integration and deployment.
1. National or Regional Solar Portfolio Standard – Establishing minimum set asides based on relative renewable energy resource
availability, including solar thermal power alongside other clean distributed generation, is an essential tool to create market
based mechanisms.
2. Production and investment tax credits – With energy costs slightly higher than geothermal and wind, solar thermal power
needs investment credits for its first two years of initial plant construction (with accelerated depreciation) and then production
credits (1.8 cents per kWh) for the following eight years, with waivers for investors from the Alternative Minimum Tax (AMT).
3. Encouragement for solar electric power can come via mandated green power purchases for federal agencies and other public
and municipal bodies.
4. Expanded federal support for a solar thermal power R&D program is required to support the market expansion envisaged for
the Southwestern United States. A recent study by Sargent & Lundy concluded that further technology improvements will
result in approximately a 50% reduction in the cost of electricity from trough plants and 25% from power tower plants.
5. Federal loan guarantees – As proposed for emerging coal and nuclear technologies, these should first be applied to CSP
installations to “prove out” these federal tools in the cleanest, lowest emission technology available to displace higher cost,
higher emissions midday peak power.
6. Formal federal support to existing federal-to-state programs could yield a significant number of megawatts in both larger
central CSP generating facilities and distributed CSP generation.
There is no question that the United States has some of the world’s best high-value solar radiation, which is optimal for
concentrated solar power. There now exists a critical mass of private companies and private investment along with a range of
technologies that could play a meaningful role in the US and global markets. Policy trends relating to deregulation and
environmental protection bode well for establishing a maturing industry.
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