CSP Gains a Foothold on US East Coast
Will there be more CSP in the Southeast
Virginia, USA -- When people think of ideal locations for concentrating solar power, they generally envision remote and dry deserts, like the Southwest. But with its Martin Solar Energy Center, Florida Power & Light (FPL) has shown that CSP can work in a humid and cloudy climate. Will that success bring more of the technology to the Southeast?
The question remains open. While it initially appeared more CSP was on it way, optimism has waned because of a combination of technological, political and market forces. First, the Southeast's climate continues to deter many developers. CSP's high temperature technology works best when solar energy is consistent. “From a geography standpoint, the Southeast is not a region where you would [expect to]see CSP move forward,” says Steve Kalland, executive director of the North Carolina Solar Center.
Second, FPL Martin has a unique advantage. It is not a stand-alone project, but a hybrid that operates in conjunction with an existing combined-cycle natural gas plant. This integration underlies its success. Because some of the infrastructure was already built, it was cheaper than a stand-alone CSP plant. Any new CSP in the Southeast is likely to also be hybrid. After all, it offers a potential 20 per cent cost advantage. And as natural gas prices continue to drop, hybrid systems will become even more cost-effective, according to Kalland.
But the hybrid cost advantage does not appear to be enough to get projects going. The Southeast is heavily vested in fossil fuel and nuclear, deeply cost conscious, and slow to adopt favorable green energy policies. And a handful of utilities control large parts of the energy market, making it difficult for independent power developers to compete. Couple that with the rapidly falling cost of crystalline PV panels, and CSP faces an uphill climb in the region.
Second, FPL Martin has a unique advantage. It is not a stand-alone project, but a hybrid that operates in conjunction with an existing combined-cycle natural gas plant. This integration underlies its success. Because some of the infrastructure was already built, it was cheaper than a stand-alone CSP plant. Any new CSP in the Southeast is likely to also be hybrid. After all, it offers a potential 20 per cent cost advantage. And as natural gas prices continue to drop, hybrid systems will become even more cost-effective, according to Kalland.
But the hybrid cost advantage does not appear to be enough to get projects going. The Southeast is heavily vested in fossil fuel and nuclear, deeply cost conscious, and slow to adopt favorable green energy policies. And a handful of utilities control large parts of the energy market, making it difficult for independent power developers to compete. Couple that with the rapidly falling cost of crystalline PV panels, and CSP faces an uphill climb in the region.
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