Shrinking reserves of fossil fuels and growing anxiety over future energy security have boosted investments in renewable energy worldwide. Alarming climate change scenarios have also increased the focus on creating sustainable energy economies. It is common knowledge that a sustainable future for both the world economy and the planet are inconceivable without renewable energy sources, such as solar energy. (1)

Alamy / Clynt Garnham

The solar industry is growing incredibly fast and technology is developing at high speed. Soon the retail price of solar generated electricity will be competitive with that of electricity generated in conventional power plants. This was inconceivable thirty years ago, at the time of the first oil embargo, when individual pioneers started installing solar panels on their rooftops.

The current solar boom is largely the result of market incentives introduced by governments. These incentives have made investments by the private sector attractive, which in turn are driving technology development. Solar advocates like Hermann Scheer, a member of the German parliament who pushed for introducing the feed-in tariff (FiT), and who is a frequent guest of honour at many an opening of new solar panel factories, claims to have initiated not only a boost to the solar manufacturing industry but also to the much needed development of green energy. (2)

Some people are critical, especially those against any interference in the free market. Yet at a time when governments are bailing out the financial system, thes now seems rather tenable. Other critics question the potential of solar energy note that it currently contributes a meagre 0.1% to worldwide energy consumption, and that wind and bioenergy will have to play a far bigger role in ‘greening’ our economies. But worldwide volumes for solar energy, the fastest-growing power generation technology, (3) rose at an average annual rate of 56% over the last five years. (4) And its potential has only scarcely been tapped. The Solar Europe Initiative (SEI), a joint initiative of the European Photovoltaic Industry Association (EPIA) and the EU PV Technology Platform, is currently reviewing a preliminary estimate which indicated that the contribution from photovoltaic (PV) systems may be as high as 6-12% of the total EU electricity consumption by 2020.(5)

This special report on solar energy features an article on technology by consultant Johan Trip, a business analysis by solar industry expert Meinolf Heptner; a case study of India by research analyst Jaideep Malaviya and a report on solar energy in developing countries.

Footnotes

(1) EU member states pledge commitment to achieving at least 20% renewable energy by 2020. The latest directive for ‘the promotion of the use of energy from renewable sources’, proposed by the European Parliament last December, reconfirms this commitment.
(2) Scheer, H. (2007) Energy autonomy. Earthscan Publications.
(3) Grid-connected solar PV is the fastest-growing power generation technology in the world. Source: Renewables 2007. Global Status Report. Renewable Energy Policy Network for the 21st Centrury, www.ren21.net.
(4) In early March 2009, a ‘3% party’ was thrown (By PHOTON, a German publishing house) to celebrate that in Bavaria, the largest state of Germany, 3% total electricity use was covered by solar energy. In 2007 there was a 1% party and in 2008 there was a 2% party.
(5) Sinke, Grid parity: Holy Grail or hype? To be published in European Sustainable Energy Review, 2009.