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Executive SummaryThis report discusses and analyzes the potential benefits of co-locating wind and concentrating solar power (CSP) plants in the southwestern United States. Using a location in western Texas as a case study, we demonstrate that such a deployment strategy can improve the capacity factor of the combined plant and the associated transmission investment. This is because of two synergies between wind and CSP. One is that real-time wind and solar resource availability tend to be slightly negatively correlated. The other is that low-cost and highly efficient thermal energy storage (TES) can be incorporated into CSP. TES allows solar generation to be shifted and used to fill-in excess transmission capacity not being used by wind. Adding TES in a transmission constrained system can reduce, but not eliminate curtailment, especially during periods of extended high wind output and high solar output. Adding transmission constraints associated with co-location also reduces performance, including the inability of CSP to provide maximum output during periods of both high demand and significant wind output. Overall the economic tradeoff between transmission costs and system performance is highly sensitive to assumptions regarding transmission and CSP costs. Using data from the years 2004 and 2005, we demonstrate that a number of deployment configurations, which include up to 56% CSP (on a capacity and energy basis) yield a positive net return on investment.vi