Economic impacts of solar thermal electricity technology deployment on Andalusian productive activities: a CGE approach

Solar thermal electricity is a type of renewable energy technology of special interest for Andalusia (southern Spain) because of the large number of annual sunshine hours. This paper estimates the impact on productive activities of increasing the production capacity of the installed solar thermal plants in Andalusia. Using a Computable General Equilibrium (CGE) approach, estimates of the changes in the economic sectors’ activity under two different scenarios are obtained: i) based on two types of solar thermal electricity plants currently in operation; and ii) based on an increase from 11 MW in 2007 to 800 MW installed capacity by 2013 to comply with the ‘Plan Andaluz de Sostenibilidad Energética (PASENER) – Sustainable Energy Plan for Andalusia’. For the case of a parabolic-trough solar collector power plant, results show that compliance with the PASENER goal would increase the level of the productive activities by around 30%. For the alternative technology – a solar-tower power plant – results show that activities would increase by around 5% for 30 years, the estimated lifetime of this type of plant. Thus the impact of the solar thermal electricity plants on the productive activities of the PASENER compliant production goal would be remarkable. Keywords solar thermal electricity, computable general equilibrium model, renewable energy JEL Classification Q28, C63, Q43JRC.J.5-Agriculture and Life Sciences in the Econom