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Socioeconomic Impact of Solar Thermal Electricity Deployment in Spain – A Brief Review
Table 1: Total Effect on the Demand for Goods and
This figure implies that for every €19,000.80 directly invested,
Services and Employment
one new job is created.
Individual Plants Solar Tower Plant
50MW Parabolic Trough Effect on Demand for Goods and Services
With respect to the socioeconomic impacts associated with solar
Power Plants
tower plants (see Table 1), the total effect on the demand of goods
Demand Ratio (M€/MW) Total Effect (M€)
Direct demand 9.7 485 and services amounts to €521.9 million, which is equivalent to €30.7
(constr+op)
million per MW. Of such total effect, €256 million accounts for the
Indirect demand 8.9 445
indirect effect generated during the construction and operation phase,
(constr+op)
Total increase in 18.6 930
and the total multiplier effect is 1.96.
demand (constr+op)
Effect on Employment Creation
With respect to the employment effect, during the construction and
Employment Ratio Total Employment
operation of the plant, 5,491 jobs would be created (3,213 directly
(Emp/MW)
Direct employment 111 5,553.5
and 2,278 indirectly), implying that one new job is created for every
(constr+op)
€20,600 directly invested.
Indirect employment 81 4,030.2
(constr+op)
Total employment 192 9,583.7
Compliance with the Objectives of the
17MW Solar Tower Effect on Demand for Goods and Services
Spanish Renewable Energy Plan
Power Plant (TP)
Based on the results of individual plants, the socioeconomic impacts
Demand Ratio (M€/MW) Total Effect (M€)
Direct demand 15.7 266 associated with compliance with the PER (2005–2010) were
(constr+op)
estimated. It was assumed that in order to meet the PER’s solar
Indirect demand 15 256
(constr+op)
thermal installed capacity goal (500MW installed capacity), 400MW of
Total increase in 30.7 522 parabolic trough plants (80% of the total power) would be installed
demand (constr+op)
while the rest (20%) would be met with 100MW of solar thermal
Effect on Employment Creation
tower plants. Furthermore, it was assumed that during the period
Employment Ratio Total Employment
under consideration, operation and investment costs would remain(Emp/MW)
Direct employment 189 3,213
constant, and this is supported by the literature.
7
(constr+op)
Indirect employment 133 2,278
Results show that the total increase in the demand for goods and
(constr+op)
services generated as a result of the compliance with the PER
Total employment 322 5,491
solar thermal goal would amount to €10,538 million (equivalent
Per 2005–2010 Solar Thermal Goal
to an average of €21 million per MW). Total employment would
500MW per 2005–2010 Effect on Demand for Goods and Services
Solar Thermal Goal
amount to 108,993 full-time one-year jobs (63,485 direct jobs and
Demand Ratio (M€/MW) Total effect (M€)
45,508 indirect jobs).
Total increase in 21 10,538
demand (constr+op)
Effect on Employment Creation
Conclusions
Employment Ratio Total Employment
In order to make renewable energy technologies competitive in the
(Emp/MW)
Total employment 218 108,992
energy market, it is necessary that support policies take into account
(constr+op)
constr+op = construction and operation; M€ = million euros.
Results show that the total
effect on the demand for goods
Scenario Results
and services would amount to
Individual Impacts
10,538MW, which is equivalent
Parabolic Trough Plant
to an average of €21.1 million
As shown in the upper part of Table 1, the total effect associated with
this plant amounts to €930 million (equivalent to €18.6/MW), of
for every MW installed.
which total indirect effect generated during the construction and
operational phase accounts for €445 million. The associated multiplier both their environmental and socioeconomic benefits. Among the
effect is 1.92, which means that for every euro invested during the renewable energy technologies, solar thermal energy is likely to play an
construction and operation phase of the plant, an aggregate demand important role in the future. This is particularly the case in countries
of €1.92 is generated. such as Spain, mainly because of its favourable climatic conditions and
support policies such as the PER and feed-in tariffs.
With respect to its effect on employment, the above-mentioned
increased demand in goods and services would generate 9,583.70 In this context, this work attempts to estimate the socioeconomic
additional equivalent jobs of one year of duration (of which 5,553.5 impacts (in terms of total increased demand of goods and services as
and 4,030.20 are directly and indirectly created, respectively). well as employment generated) associated with the accomplishment of
MODERN ENERGY REVIEW VOLUME 2 ISSUE 1
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