Solar power tower commercialization in the Southwest: A market and technical assessment

This market and technical assessment illustrates that the Southwestern power market can support the commercialization needs of Solar Power Tower (SPT) technology over the next 10 to 15 years. Realizing full commercial development during this time is contingent on successful completion of Solar Two and development of an initial follow-on plant around 2000. After 2002, the power market will become increasingly robust, presenting new opportunities for SPT development. The important conclusion of this analysis is that SPT projects can reach a cost level that puts them at or below the expected norm of costs for their main competitor, combined cycle natural gas. This means that with the same competitive focus on minimizing costs and finding opportunities to be more competitive that characterize combined cycle project developers, SPT has a realistic chance of competing and winning market share. The ability of SPT technology to compete in this market will be greatly affected by the rate of cost-reductions and technological improvements, but perhaps as importantly, by the environmental and regulatory climate which will unfold over the next decade and the availability of low cost financing options