Toward a Sunny Future? Global Integration in the Solar PV Industry

Policymakers seem to face a trade-off when designing national trade and investment policies related to clean energy sectors. They have pledged to address climate change and accelerate the large-scale deployment of renewable energy technologies, which would benefit from increased global integration, but they are also tempted to nurture and protect domestic clean technology markets to create green jobs at home and ensure domestic political support for more ambitious climate policies. This paper analyzes the global integration of the solar photovoltaic (PV) sector and looks in detail at the industry’s recent growth patterns, industry cost structure, trade and investment patterns, government support policies and employment generation potential. In order to further stimulate both further growth of the solar industry and local job creation without constructing new trade and investment barriers, we recommend the following: (1) Governments must provide sufficient and predictable long-term support to solar energy deployment. Such long-term frameworks bring investments forward and encourage cost cutting and innovation, so that government support can decrease over time. A price on carbon emissions would provide an additional long-term market signal and likely accelerate this process. (2) Policymakers should focus not on solely the manufacturing jobs in the solar industry, but on the total number of jobs that could possibly be created including those in research, project development, installation, operations and maintenance. (3) Global integration and broader solar PV technology deployment through lower costs can be encouraged by keeping global solar PV markets open. Protectionist policies risk slowing the development of global solar markets and provoking retaliatory actions in other sectors. Lowering existing trade barriers—by abolishing tariffs, reducing non-tariff barriers and harmonizing industry standards—would create a positive policy environment for further global integration.Solar PV, climate change, renewable energy, government support, green protectionism, green jobs, global integration

Measures to promote renewable energy for electricity generation in Algeria

Algeria has enormous renewable energy potential. However, fossil fuels remain the main electricity generation source, and the country is the third largest CO2 emitter in Africa. Algeria is also particularly vulnerable to climate change. Therefore, a set of actions related to energy, forests, industry and waste sectors have been programmed, over the period 2015–2030, and the government action program has given priority to promote renewable energy. In this sense, Algeria is committed to significantly promote investment in renewable energy, during the period 2020–2030. Thus by 2030, renewable electricity production capacity will achieve 22,000 MW, representing 27% of total electricity generation. This paper analyzes the electricity generation measures implemented in Algeria to reach the required energy mix, the legislative framework, financial aid, the feed-in tariff system, the tax incentives, and the tender and auctions undertaken. The analyses reveal that, although the electricity price premium policy has not been revoked, the newly enacted tender scheme is designed to become the standard procedure for launching renewable energy projects in Algeria in the coming years

Relying on storage or ICT? How to maintain low voltage grids' stability with an increasing feed-in of fluctuating renewable energy sources

Since the beginning of the new century our electricity system is changing rapidly. Distributed energy resources, such as wind or solar energies are becoming more and more important. These energies are producing fluctuating electricity, which is fed into low voltage distribution grids. The resulting volatility complicates the exact balancing of demand and supply. These changes can lead to distribution grid instabilities, damages of electronic devices or even power outages and might therefore end in deadweight losses affecting all electricity users. A concept to tackle this challenge is matching demand with supply in real-time, which is known as smart grids. In this study, we focus on two smart grids' key components: decentralized electricity storages and smart meters. The aim of this study is to provide new insights concerning the low diffusion of smart meters and decentralized electricity storages and to examine whether we are facing situations of positive externalities. During our study we conducted eight in-depth expert interviews. Our findings show that the diffusion of smart meters as well as decentralized electricity storages is widely seen as beneficial to society. This study identifies the most important stakeholders and various related private costs and benefits. As private benefits are numerous but widely distributed among distinct players, we argue that we face situations of positive externalities and thus societal desirable actions are omitted. We identify and discuss measures to foster diffusion of the two studied smart grid key components. Surprisingly, we find that direct interventions like subsidies are mostly not seen as appropriate even by experts from industries that would directly benefit from them. As the most important point, we identified well-designed and clearly defined regulatory and legal frameworks that are free of contradictions. --smart meter,decentralized electricity storage,smart grid,externality

Technology roadmap: solar photovoltaic energy - 2014 edition

Solar power enhances energy diversity and hedges against price volatility of fossil fuels, thus stabilising costs of electricity generation in the long term, argues this report. Overview Solar energy is widely available throughout the world and can contribute to reduced dependence on energy imports. As it entails no fuel price risk or constraints, it also improves security of supply. Solar power enhances energy diversity and hedges against price volatility of fossil fuels, thus stabilising costs of electricity generation in the long term. Solar PV entails no greenhouse gas (GHG) emissions during operation and does not emit other pollutants (such as oxides of sulphur and nitrogen); additionally, it consumes no or little water. As local air pollution and extensive use of fresh water for cooling of thermal power plants are becoming serious concerns in hot or dry regions, these benefits of solar PV become increasingly important. Key findings: Since 2010, the world has added more solar photovoltaic (PV) capacity than in the previous four decades. Total global capacity overtook 150 gigawatts (GW) in early 2014 The geographical pattern of deployment is rapidly changing. While a few European countries, led by Germany and Italy, initiated large-scale PV development, since 2013, the People’s Republic of China has led the global PV market, followed by Japan and the United States PV system prices have been divided by three in six years in most markets, while module prices have been divided by five This roadmap envisions PV’s share of global electricity reaching 16% by 2050, a significant increase from the 11% goal in the 2010 roadmap Achieving this roadmap’s vision of 4 600 GW of installed PV capacity by 2050 would avoid the emission of up to 4 gigatonnes (Gt) of carbon dioxide (CO2) annually This roadmap assumes that the costs of electricity from PV in different parts of the world will converge as markets develop, with an average cost reduction of 25% by 2020, 45% by 2030, and 65% by 2050, leading to a range of USD 40 to 160/MWh, assuming a cost of capital of 8% To achieve the vision in this roadmap, the total PV capacity installed each year needs to rise from 36 GW in 2013 to 124 GW per year on average, with a peak of 200 GW per year between 2025 and 2040 The variability of the solar resource is a challenge. All flexibility options – including interconnections, demand-side response, flexible generation, and storage –need to be developed to meet this challenge Appropriate regulatory frameworks – and well-designed electricity markets, in particular – will be critical to achieve the vision in this roadmap Levelised cost of electricity from new-built PV systems and generation by sector

Renewables 2005: Global Status Report

The Global Status Report provides an assessment of several renewables technologies -- small hydro, modern biomass, wind, solar, geothermal, and biofuels -- that are now competing with conventional fuels in four distinct markets: power generation, hot water and space heating, transportation fuels, and rural (off-grid) energy supplies. The report finds that government support for renewable energy is growing rapidly. At least 48 countries now have some type of renewable energy promotion policy, including 14 developing countries. Most targets are for shares of electricity production, typically 5-30 percent, by the 2010-2012 timeframe. Mandates for blending biofuels into vehicle fuels have been enacted in at least 20 states and provinces worldwide as well as in three key countries -- Brazil, China and India. Government leadership provides the key to market success, according to the report. The market leaders in renewable energy in 2004 were Brazil in biofuels, China in solar hot water, Germany in solar electricity, and Spain in wind power. The Global Status Report fills a gap in the international energy reporting arena, which has tended to neglect the emerging renewable energy technologies. Regular updates will be produced in the future. The report was produced and published by the Worldwatch Institute and released today at the Beijing International Renewable Energy Conference 2005, sponsored by the Government of China. This Conference brings together government and private leaders from around the world, providing a forum for international leadership on renewable energy and connects the wide variety of stakeholders that came together at the International Conference for Renewable Energies in Bonn, Germany, in 2004. The creation of REN21 was sponsored by the German Federal Ministry for Economic Cooperation and Development and the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. Formally established in Copenhagen in June 2005, REN21 is now supported by a steering committee of 11 governments, 5 intergovernmental organizations, 5 non-governmental organizations, and several regional, local, and private organizations

Diffusion of photovoltaic in Germany: roles of policy, system suppliers and adopters

In some countries photovoltaic (PV) technology is at a stage of development at which it can compete with conventional electricity sources. A case in point is Germany where PV market has reached a mature stage. As a manifest of this, the German government has recently reduced the feed-in-tariff, which had been the strongest driver of PV diffusion. This development raises a fundamental question: Why would potential adopters be motivated to adopt PV when feed-in tariff diminishes? The point of departure for the literature on diffusion of PV has been on the effect of subsidies but little attention has paid to adopter motives when the policy support is scaled down. This paper presents an in-depth analysis of the adopter motives for photovoltaic applications. Anchored in an extensive exploratory case study we provide an encompassing explanation of roles of policy, adopters and system suppliers on diffusion of PV

Geographical interdependence, international trade and economic dynamics: the Chinese and German solar energy industries

The trajectories of the German and Chinese photovoltaic industries differ significantly yet are strongly interdependent. Germany has seen a rapid growth in market demand and a strong increase in production, especially in the less developed eastern half of the country. Chinese growth has been export driven. These contrasting trajectories reflect the roles of market creation, investment and credit and the drivers of innovation and competitiveness. Consequent differences in competiveness have generated major trade disputes

Improving Residential Solar Photovoltaic Uptake within the Moreland Municipality

The goal of our project was to assist the Moreland Energy Foundation (MEFL) in expanding the use of residential solar photovoltaic (PV) systems in the City of Moreland in north metropolitan Melbourne by identifying major drivers and barriers that shape the PV market. We interviewed PV installers and surveyed households to identify what affects consumers’ decisions to install PV systems. Moreland has the potential to offset most of its residential electricity usage through PV, but to achieve this potential MEFL and other organizations and agencies need to develop regulations for landlords to encourage PV installations, educate owners of multi-unit dwellings about PV options, educate consumers about upfront costs and finance options and enhance community engagement through targeted outreach

Large Scale Deployment of Renewables for Electricity Generation

Comparisons of resource assessments suggest resource constraints are not an obstacle to the large-scale deployment of renewable energy technologies. Economic analysis identifies barriers to the adoption of renewable energy sources resulting from market structure, competition in an uneven playing field and various non-market place barriers. However, even if these barriers are removed, the problem of ‘technology lock-out’ remains. The key policy response is strategic deployment coupled with increased R&D support to accelerate the pace of improvement through market experience. The paper suggests significant contributions from various technologies, but does not assess their optimal or maximal market share

Solar energy in Portugal: development perspectives based on a comparison with Germany

JEL Classification: Q42 - Alternative energy sources; Q43 - Government PolicySolar energy is one of the renewable energies that has greater potential for future development. Portugal is one of the European countries with better solar conditions, but is certainly not one of the countries that has been taking the best advantage of it. It is therefore appropriate to know why Portugal is not using and developing solar energy in accordance with its wide availability. On the other hand, Germany is using solar energy as no other country and is currently one of the leading nations in this sector. After a comparative study of the photovoltaic and solar thermal markets in Portugal and Germany, the conclusion is that the different stage of development between the two countries is largely the result of the different policies adopted. That is, the development of solar energy depends not only on the solar radiation of each country, but above all on the policies adopted to promote its development and enhance these markets. According to the findings of this comparative study and taking in consideration the trends in the solar energy sector, a set of strategic guidelines for the future development of solar industry in Portugal was defined.A energia solar é uma das energias renováveis que apresenta maior potencial de desenvolvimento futuro. Portugal é um dos países da Europa com melhores condições para a utilização da energia solar, mas não é certamente um dos países que melhor as têm aproveitado. Interessa, pois, saber porque é que Portugal não tem aproveitado a energia solar e potenciado o seu desenvolvimento de acordo com a sua vasta disponibilidade. Por outro lado, a Alemanha tem aproveitado a energia solar como nenhum outro país e é actualmente uma das nações líderes neste sector. Através de um estudo comparativo dos mercados de energia solar fotovoltaica e solar termal de Portugal e da Alemanha, concluiu-se que a diferença de desenvolvimento entre os dois países é em grande parte resultado das diferentes políticas adoptadas. Ou seja, o desenvolvimento da energia solar depende não só da radiação solar de cada país, mas sobretudo das políticas adoptadas para promover o seu desenvolvimento e dinamizar os respectivos mercados. De acordo com as conclusões deste estudo comparativo e tendo em consideração as futuras tendências do sector da energia solar, foram definidas uma série de orientações estratégicas para o futuro desenvolvimento da indústria solar em Portugal