Solar concentrators: Research on making solar power cheaper

A new research publication, launched less than a week after Earth Day, focuses on the impact of light engineering on the environment, green technologies and sustainable energy development. A bi-monthly supplement to Optics Express, the journal of the Optical Society, Energy Express will cover topics from making solar energy economical to providing energy from fusion.

The inaugural issue is dedicated to solar concentrators — a technology that harnesses the most abundant source of energy available to us: the sun. Solar concentrators aim to increase the efficiency of solar energy generation and the journal includes features on new devices that concentrate the sun’s rays and increase the efficiency of solar cells.

Despite its promise, solar power only accounted for about 1 percent of U.S. renewable energy production in 2008, according to the society. Because one of the greatest barriers to popularizing the use of solar power is its cost, industry experts are looking for ways to make its large-scale production cheaper.

How can solar energy become more affordable? By lowering the cost of solar cells or increasing the amount of power they generate, according to the Optical Society. Here are two of the methods, outlined by experts in Energy Express, which could achieve those goals:

Layered solar cell materials

The latest and most efficient solar cells in the National Renewable Energy Laboratory can achieve efficiencies greater than 40 percent while commercially-available solar panels are currently about 19 percent efficient. The best solar cells could reach 50 percent efficiency with more work, according to the laboratory’s Sarah Kurtz and John Geisz.

Solar fuels

Concentrated solar energy can be used to produce clean chemical fuels for the power and transportation sectors, according to Aldo Steinfeld of ETH Zurich and Alan Weimer from the University of Colorado. Thermochemical processes that make use of concentrated solar radiation as an energy source to drive high-temperature endothermic reactions have the potential to achieve high solar-to-fuel energy conversion efficiencies.

Image: False color image showing Earth’s solar energy absorption / NASA

 

A green light unto the nations

�I will make with you a covenant to be a light unto nations� Isaiah 42:6.

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Jews have long been identified as divinely selected to serve as a light unto nations. Democratic ideals, fidelity to justice, the rule of law and essential dignity of the human person are just a few examples of that model. Interestingly, so is the first known environmental protection exhortation -- to respect the planet and its resources. Specifically, the Torah commands �do not destroy trees by swinging an axe against them, for from them you will eat.� Deuteronomy 20:19.

Israel has been associated with environmental conscientiousness since the creation of the modern state 62 years ago. Around the world, awareness has also expanded as we consume resources, particularly fossil fuels, at alarming rates. Last week, the world celebrated its 40th �Earth Day� and, while some scientists may debate global warming, the felicitous objective of enjoying a greener planet is universally agreed upon. Moreover, major geopolitical factors have also entered the equation as much of the world�s oil and natural gas reserves are controlled by rulers hostile to the values described above.

Western civilization and the price of oil

Today, oil trades around $80 a barrel. This is more than double what it cost at the end of 2008, yet only about half of the high reached six months prior in July 2008. Clearly, oil is a volatile commodity. Tragically, it is also one that the world has become addicted to. I submit that the more important figure is the price of the last barrel of oil. Carried to the extreme, that price is binary: the last barrel will cost either $0 or $infinity. If we approach the latter price, we will concomitantly approach the end of western civilization. Therefore, we must dedicate massive resources to reach the former price, where oil becomes the oleaginous, messy, valueless liquid that it was before the industrial revolution.

Who will lead that effort? In response to the energy crisis generated by the Arab embargo in 1973 (following the Yom Kippur war), it looked like America along with Israel - would blaze that trail. Israel was a natural pioneer for this research. Passive solar home design, blocking/capturing heat during the day and releasing it at night, was embraced by Israeli architects as early as the 1970s and over 50% of domestic hot water has been produced by solar energy since the 1950s.

In fact, by the 1980s, Luz, an Israeli-American company was generating 95% of the world�s solar energy. Their first project was a 12.5 MW electricity-generating power station at Dagget, California, followed by six 30 MW power plants, employing a larger size solar collector unit. Ultimately, Luz erected two 80 MW power stations using even larger solar collector units. All of these plants are still operational, over 20 years later.

But in the mid-1980s oil became cheap again. Saudi Arabia increased the flow and the Reagan administration applauded the initiative. The US knew that the world�s second largest oil exporter was the Soviet Union and that low oil prices would cripple its economy. Mired in Afghanistan (America�s turn would come a quarter century later) and stretched thin to support failed satellite dictatorships around the world, the USSR relied heavily on its oil export revenues. As prices crumbled, so too did the Berlin Wall and, ultimately, the entire �Evil Empire.�

Thus the West won the Cold War, sometimes referred to World War III. Can it use a similar strategy to win World War IV, currently being waged against radical Islam financed by petro-dollars? I believe we can. But the Saudis won�t be our allies this time, nor will any other entity whose economy is fueled chiefly by oil exports. Today, the only way to make oil cheap is to make it useless.

The president�s recent drilling compromise received a lot of attention. In my view, it is a side-show. Even if America succeeds in increasing its share of the planet�s proven reserves from 3% to 4, 5 or even 10% (which is extremely unlikely), that�s a proverbial drop in the barrel as the US continues to consume 25% of the world�s production. Drilling may delay the inevitable, but it doesn�t eliminate the addiction. A heroin addict that plants poppies in his backyard is still an addict. Moreover, few addicts ever act in ways that alienate their dealers, which in our world are the dreadful oil exporters. Therefore, the only responsible rationale for increased drilling is to buy more time to develop alternative energy solutions.

Clearly, China understands that. It is busy securing oil drilling concessions from countries across Africa and Latin America and has surpassed the US as the chief importer of oil from Saudi Arabia. Yet, simultaneously, China is also investing massively in green technologies. The country is now the world�s largest manufacturer of photovoltaic solar panels and at the vanguard of developing a domestic electric car industry. Warren Buffet believes one company, BYD, knows what it takes to make China a �better place� and last year invested $230 million for a 10% stake in the company. Perhaps Buffet thinks Wang Chuan-Fu, BYD�s founder and chairman, means Shai Agassi in Mandarin.

Bright lights in Israel

These enterprises are critical if we are to reduce and, hopefully, eventually eliminate our dependence on oil. Better Place has already signed deals on five continents that want to move towards battery-powered electric cars. They also just raised another $350 million and progress has been impressive on all fronts. Additional cities, states and countries have clamored to be included and the company can�t handle even a fraction of the enthusiasm. According to Michael Granoff, Head of Oil Independence Policies for Better Place, �a critical question is how will the anticipated hunger for electricity be satisfied? We�re working closely with renewable energy companies, particularly in Israel, to ensure that Better Place�s success also inures to the benefit of companies expanding grid capacity with clean-tech solutions.�

Today, renewable sources like solar, wind, geothermal, biomass and hydro play a negligible role in the overall mix. However, the technologies are improving, especially abroad. While oil was cheap, US drivers paid less at the pump. Europeans did not. Most European countries taxed gasoline and, in my view, thus encouraged European companies to identify renewable energy solutions. Germany, Spain and the Nordic countries have been illuminating the path to non-oil dependent technologies and entire towns in Denmark are now powered by alternative energy sources.

Thankfully, Israeli companies are also playing a role. Luz went bankrupt in the 1990s, shortly after constructing the California plants, a victim of investment dollars run dry. However, Luz�s two major corporate successors remain leaders in concentrated solar power. Solel, which employs the next generation of Luz parabolic troughs for its solar thermal power plants was acquired last October by Siemens for $418 million. And BrightSource, founded by several former Luz engineers, just received $1.4 billion in US federal loan guarantees to construct three separate utility-scale solar thermal units in California that will generate 400 MW of electricity. That�s enough to power 140,000 homes and will nearly double the amount of solar thermal energy produced in the US today. According to Professor David Faiman of Ben Gurion University, �whoever invests in Israeli solar initiatives today is likely to be included in the next generation of soligarchs.�

US debt fuels Islamic militants

Let�s think about what the true price of oil is for America and the rest of the free world. If oil had no value, would we be grappling with the question of a nuclear Iran? Would Hamas, Hezbollah and other terror-based organizations be viable without any petro funding? Would the burgeoning number of Wahabi-financed hate-preaching madrasas continue to flourish? Would Al-Quaida even exist?

The United States has already spent over $1 trillion on the wars in Afghanistan and Iraq, and they�re likely to be there for a while. America imports about $300-500 billion a year in foreign oil and borrows over $2 billion every day to finance these expenditures. The national debt is over $12 trillion and rising. Unless our creditors all embrace the Koran�s prohibition against �riba,� the charging of interest on loans, America won�t get out of its economic jam until it gets out of its fossil fuel addiction. I believe that the West still has a green light. But we must hurry forward before it turns dark.

Lyon (Lenny) Roth is a senior executive at an international wealth management firm and a member of Ben Gurion University's Board of Governors.

Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2010

� Copyright of Globes Publisher Itonut (1983) Ltd. 2010

New nuclear plants for Iowa, California?

Developments in two US states could lead to the construction of new nuclear power plants. In Iowa, legislation has been passed to enable utilities to study building new power reactors, while in California Areva has firmed up its agreement to participate in a plant near Fresno.

 

The governor of Iowa has signed into law a measure which encourages utilities to conduct studies into the possible expansion of nuclear energy in the state. On 28 April, at the Des Moines offices of the International Brotherhood of Electrical Workers, Governor Chet Culver signed a bill which requires rate-regulated public utilities to undertake analyses of and preparation for the possible construction of nuclear power plants in Iowa.

 

The legislation calls for such studies to be conducted with only a limited cost to ratepayers and with the Iowa Utilities Board providing oversight. The bill also modifies existing law related to electricity generation and to switching existing coal-based plants to other fuel sources. Utilities will be able to enter into rate-making in order to pay for investments that may lead to lower carbon emissions from current plants. This, the governor said, "opens the door for plants to switch from coal to natural gas, add 'carbon capture' to existing plants, and add gas or biomass as a primary source of fuel for these plants."

 

On signing the bill, Culver commented: "This bill gives Iowa utilities and consumers more tools to make decisions on our energy future. The study will give us a clear idea of what the future for nuclear and alternative energies may hold in Iowa." He added, "From the $100 million Power Fund, to wind energy, to the Office of Energy Independence, we are building our own future in energy production, and the new energy economy can create good jobs with benefits for Iowans. We are proving that environmental protection and economic growth can and should be tied together."

 

In March 2010, the Iowa state Senate voted to allow utility MidAmerican Energy to increase electric consumer rates so that it can study the feasibility of constructing a nuclear power plant. A vote of 37-13 in favour has allowed a $4 per year increase in residential customers' electricity bills, with a $15 increase for commercial customers and $1100 for industrial customers. Over three years the additional funds, totalling $15 million, will be used by MidAmercian to finance a study into the feasibility of constructing a second nuclear power plant in the state.

 

MidAmerican had previously proposed constructing a nuclear power plant in Payette County, Idaho. However, in December 2007, it announced that it had decided not to proceed. At that time, the company said that its decision was "based on economic considerations and not on issues related to the suitability of the Idaho site."

 

There is currently only one nuclear power plant operating in Iowa: the single-unit Duane Arnold plant. The 600 MWe boiling water reactor (BWR) is majority owned and operated by NextEra Energy Resources (70%), while the Central Iowa Power Cooperative owns 20% and the Corn Belt Power Cooperative owns 10%. The reactor, which began operating in 1975, accounts for almost 10% of Iowa’s electricity generation, with the remainder primarily produced from coal-fired plants.

 

California dreaming

 

Meanwhile, in California - where a moratorium introduced in 1976 on new nuclear build is still in place - France's Areva has signed a memorandum of understanding (MoU) with Fresno Nuclear Energy Group (FNEG) to develop a "clean energy park" near Fresno. The MoU follows the signing a letter of intent to cooperate in December 2009. The park, in California's Central Valley, is eventually to include nuclear and renewable electricity generation.

 

Under the MoU, the two companies will work together on the site selection and initial development of a nominal 1600 MWe EPR reactor. The agreement also allows for the potential development of other Areva energy technologies, such as concentrated solar power.

 

In a statement, Areva and FNEG said that, once the site of the energy park has been selected, work will begin on the solar phase of the park.

 

Before a nuclear power plant can be built on the site of the park, the legislation banning the construction of such plants in California must first be removed. A bill to repeal this moratorium was voted down in April 2007, but may be reintroduced.

 

Researched and written

by World Nuclear News

 

Can the Sahara Light Up Europe with Solar Power?: Recent Developments in CSP

Across the world's sunbelts, concentrated solar power is emerging as a blindingly obvious answer both to global power – and local water – needs. But can it reach the scale required?

by Duncan Graham-Rowe

(A Desertec map of power from the Sahara to Europe. Source: Desertec Foundation)

Desertification is a dirty word, but deserts are not entirely without their uses. Plans are underway to transform swathes of the Sahara into a glimmering sea of mirrors, with the goal of piping cheap, clean and efficient solar energy into the heart of Europe.

Dubbed the Desertec Industrial Initiative, it will create vast fields of concentrated solar power (CSP) plants – arrays of mirrors which focus the sun's energy to turn water into steam, and so drive electrical turbines. From there, the power will flow through a network of low loss transmission cables to pipe electricity into the existing European grid, via Spain.

The £240 billion venture, which brings together such big energy names as Siemens and E.On, is designed to meet as much as 15% of Europe's fast-rising electricity demand by 2050. And the first electrons could be coming onstream in as little as five years' time…

This, says Jonathon Porritt, is something of a second coming for CSP. "It was first introduced after the oil shocks of the 70s and early 80s, but as soon as oil prices fell, all investment in that particular technology stopped."

But now that the cost of carbon is playing into the economics of energy production, CSP is looking increasingly promising. According to Keith Bowen, director of engineering at UK-based Circadian Solar, it holds two trump cards: efficiency and scale.

"It scales extremely well," he says. As the size of the plant increases, the relative costs come down. Large CSP plants can produce power for a quarter of the cost of that generated by standard solar photovoltaics, adds Bowen.

Efficiency is improving rapidly, too. Twenty years ago, the maximum efficiency you could get from the sun was 15-20%, compared with over 50% for fossil fuels. "Today," says Bowen, "[CSP is] closer to 40%."

And for those who live in or near deserts, that means it can also play a role in securing another vital asset: water. CSP is ideally suited to powering desalination plants. Taking salt out of water is a simple enough process, but one that uses a lot of energy. For developing countries where power shortages are a growing problem, as well as luxury resort islands where resources are scarce, Bowen argues, CSP could be an ideal solution – producing clean water and power at the same time.

A common criticism directed at both solar and wind power is that they're inherently intermittent: the sun only shines in the day, the breeze doesn't always blow. But recent advances in CSP could keep the power flowing all night long. Desertec is designed to operate 24 hours a day by superheating water to temperatures of 260ºC, sufficient to create steam at high enough pressures that it will keep driving turbines and generating electricity long after the sun has set.

An alternative approach, which is being explored by Solar Reserve in California, is to use the thermal energy to melt salt. Molten salt retains heat long enough to drive a turbine for much of the night. The company is hoping to build a 150MW solar plant in the Sonaran Desert, which would use 17,500 mirrors, each 24 meters wide, to heat salt to 565ºC. This would be enough to store up to seven hours of the sun's energy.

There's a lot of promise in this sort of approach, says Bowen. "It's been around for a while and is fairly well developed." But, he says, like other forms of CSP, it tends to work best on a grand scale, typically plants of 50MW or above.

Another development that should also help to spur CSP is the availability of better solar maps. These are detailed layouts of the earth's surface that show historical information about the amount of sunlight different locations receive. These data sheets have long been available from places like the US Government's National Renewable Energy Laboratory in Colorado, quantifying typical solar trends in different geographic regions. Now companies like 3TIER in Seattle, Washington, are making it possible to target locations for solar power not just by general region but at much higher resolutions. This enables prospective CSP developers to zero in on ideal sites.

3TIER's maps are the first to take into account not just solar activity but also the impact of long-term and seasonal wind variations. These can be significant between locations just a few kilometers apart, and affect the energy required to continually readjust the position of the mirrors.

Using this sort of approach, it has become possible to choose sites that will optimize energy output, says Gerry Wolff, Coordinator of DESERTEC-UK, an independent advisory group of CSP enthusiasts. In fact, he says, it's been calculated that a single patch of the Sahara, just 114,090 square kilometers in area, receives enough sunlight to meet the entire world's electricity demands through CSP.

So what's stopping us? Partly cost, says Wolff. Hovering at around 10-20 US cents per kilowatt hour, CSP "looks a little bit on the expensive side," compared with gas at about 5 cents. But this is likely to change when the volumes increase, he says. Indeed, three studies carried out by the German aerospace industry suggest that CSP could eventually become one of the cheapest sources of electricity in Europe. "Until about 2017, electricity from CSP will probably be more expensive," concludes Wolff. But then, as economies of scale kick in, it will become cheaper and increasingly attractive.

It is certainly attracting growing interest. The World Bank recently announced it is investing $5.5 billion into the development of CSP across North Africa. And last year, Morocco, the only North African state with no oil production of its own, declared its intention to become a pioneer in CSP as a way of cutting reliance on oil and gas imports. It plans to build five plants with a total energy production of 2,000MW by 2020.

In light of such investment, the Desertec Industrial Initiative seems less of a leap of faith. The technology to transmit the electricity across the vast distances to Europe has been well established for decades, says Wolff. But realistically, it only needs to reach as far as Spain, since Europe already has an international electrical transmission grid. This, Wolff adds, acts a bit like a pond, in the sense that it doesn't matter where you fill it up from. "So countries as far north as Sweden would immediately benefit."

The consensus on CSP now, says Jonathon Porritt, is that although it's extremely ambitious, it's also quite realistic. Besides the potential to generate vast amounts of electricity, the growing need for renewable sources of desalinated water makes CSP an excellent candidate for support, he says.

The irony is that in years to come we may find ourselves looking to deserts not just for power, but also for water.

Solar, Lighter

CSP may be a simple idea, but it doesn't come cheap. It's not easy building in the middle of a desert, and there are fairly substantial costs involved in constructing all the mirrors and central receiver towers, which have to withstand extreme temperatures and continuously pump water up to the collector. One solution to this is to dispense with the steam turbines and instead concentrate the light on highly efficient photovoltaic solar cells – the approach taken by Circadian.

Another novel approach, under experimentation at the Tokyo Institute of Technology, is to construct cheaper lightweight towers, containing a second set of mirrors at the light collection point. These are used to redirect the light to heat water at ground level, precluding the need to pump it up the tower.

This piece originally appeared in The Guardian.

Want to learn more? Look into the Worldchanging archives:
Clean Power From Deserts
Concentrated Solar Power Goes Mainstream: Lockheed-Martin To Build Large CSP Plant With Thermal Storage In Arizona
eSolar Launches First Solar Tower in US
World’s Second* Largest Solar Plant To Be Built in Florida

European wind energy continued its surging success By Chris Rose

European wind energy continued its surging success By Chris Rose 27 de abril de 2010

Annual EWEA statistics show how well the wind power industry and other renewables are growing while some more traditional sectors are in retreat.

Despite the worst recession in more than 65 years, the continued growth of wind power last year sparked such a bright light for the vitally important European energy portfolio that it can only be described as phenomenal.

Data compiled by EWEA and other sources shows that wind power installations accounted for a staggering 39% of new electricity-generating capacity in 2009. By way of comparison, wind’s share of newly installed capacity a year earlier increased 35%.

The 10,163 MW of EU wind power capacity installed last year represents a 23% increase over 2008. It is also the second year in a row that more wind energy was installed in the EU than any other generating technology.

Wind power’s future continued to glow brightly on a number of other fronts. The wind capacity installed by the end of 2009 will in a normal year produce 163 TWh of electricity, meeting 4.8% of total EU power demand. According to the latest figure from Eurostat, final electricity consumption in the EU-27 was 3,372 TWh in 2007.

Not surprisingly, most of the new wind power capacity (9,581 MW) was realised through onshore wind farm installations while the remainder (582 MW) was derived from new offshore facilities. The onshore increase was 21% greater than 2008’s while the new offshore wind farm installations jumped 56% compared to new installations the previous year.

The EWEA annual statistics also showed that EU wind power, though buffeted by exceedingly fragile money markets trying to ride out the severe economic downturn, still saw investments of €13 billion in wind farms in 2009, including €1.5 billion in the nascent offshore sector.

“This is a great result in a year that was far from easy,” said Christian Kjaer, EWEA Chief Executive. “The figures confirm that wind power, together with other renewable energy technologies and a shift from coal to gas, is delivering massive European carbon reductions, while creating much needed economic activity and new jobs for Europe’s citizens.”

After wind turbines, of all new EU electricity generating capacity installed last year in addition, 25% or 6,630 MW came from gas while 17% or 4,600 MW was from solar photovoltaics. In addition, 2,406 MW (9%) of new coal was installed, 581 MW (2.2%) of biomass, 573 MW (2.2%) of fuel oil, 442 MW (1.7%) of waste, 439 MW (1.7%) of nuclear, 338 MW (1.3%) of large hydro, 120 MW (0.46%) of concentrating solar power, 55 MW (0.2%) of small hydro, 12 MW (0.04%) of other gas, 3.9 MW (0.01%) of geothermal, and 405 kW of ocean power.

Together, renewable energy technologies accounted for 62% of new European power-generating capacity in 2009, marking the second year in a row that renewable energies have accounted for the majority of new installations.

The EWEA report indicates that each year since 2008 renewable electricity generating technologies have accounted for more than 50% of new power installations – mostly wind power, but also solar PV, hydro power, and biomass.

This trend has increased from just 14% of new installations in 1995, to the 61% last year. The data reveals that the power sector in Europe is still moving away from coal, fuel oil and nuclear, as each of those power technologies continued decommissioning inefficient plants. For example, the coal sector decommissioned 3,200 MW, the nuclear sector decommissioned 1,393 MW, and the fuel oil sector decommissioned 472 MW.

In all, the EU’s total installed power capacity increased last year 20,150 MW, to 820,606 MW, with wind power increasing its share of installed capacity to 74,767 MW (9.1%), up from 64,719 MW by the end of 2008.

Additionally, the data shows that annual installations of wind power have increased steadily over the last 15 years from 472 MW in 1994 to the 10,163 MW in 2009, an annual average market growth of 23%.

Overall, the statistics show that Germany remains the EU country with the largest total of installed capacity at 25,777 MW, followed by Spain (19,149 MW), Italy (4,850 MW), France (4,492 MW), and the UK (4,051 MW).

Yet the nations with largest share of new capacity installed in 2009 were Spain (24% or 2,459 MW), followed by Germany (19% or 1,917 MW), Italy (11% or 1,114 MW), France (11% or 1,088 MW) and the UK (10% or 1,077 MW).

While Europe’s wind energy installations last year continued to be dominated by development in its mature markets, it is worth noting that Portugal (7% of new installations or 673 MW), Sweden (5% or 512 MW), Denmark (3% or 334 MW), and Ireland (2% or 233 MW) also performed strongly.

New power installations last year continued the trend in changes in EU net installed capacity for the various electricity generating technologies from 2000 to 2009. The net growth of natural gas (81 GW) and wind power (65.1 GW) came about at the expense of fuel oil (down 12.9 GW), coal (down 12 GW) and nuclear power (down 7.2 GW).

Jacopo Moccia, who compiles EWEA statistics, said there were several reasons that wind power did so well in the EU last year despite the ongoing economic downturn. “Wind power is a proven technology,” Moccia said. “Furthermore it is clean, has short lead times and no fluctuating fuel costs. If you add to that the strong political support for renewables in the EU, it is clearly seen as a safe investment with good potential returns. It is the ideal investment to ride through a crisis.”

An EWEA regulatory affairs advisor, Moccia said that offshore wind, although still smaller in terms of onshore installations, had a very good year in 2009 and should expect an even better future. “Offshore has started taking off as an industry in and of itself, and it should
no longer been seen as an extension of onshore wind. Over the past years many countries, especially around the North Sea, have been laying the foundations for offshore wind farm development via ambitious policies,” he said.

“We are now beginning to reap what has been sown, and forecasts for next year and beyond are even more exciting. We should expect offshore to keep growing at high rates, until by the second half of the 2020s the offshore industry should become bigger than the onshore one.”

He also said the €13 billion in EU wind farm investments last year demonstrate how wind energy is an ideal industry to re-launch Europe’s growth. “Wind is bringing in investments and creating jobs whilst helping us to meet the energy and climate crises we face that could, in the future, cause Europe even greater fi nancial woes than those we are living today.”

Moccia, who described wind power as the power technology of choice, was asked why EU wind saw the largest growth of all generating technologies for the second year in a row, and what that accomplishment says about the old, more traditional energy technologies such as coal and oil.

“Today’s energy mix is the result of technologies developed in the past. These technologies are not suited for the socio-economic and environmental challenges we are facing. This year 61% of all new electricity generating capacity was renewable, up from just 14% in 1995. We can truly talk of the de-carbonisation of Europe’s energy mix, which also augurs well for Europe’s future energy independence.”

He also said that the continuing success of wind power can help policy makers working towards promoting emissions free technologies and agreeing on a new and strengthened post-Kyoto pact to reduce greenhouse gas emissions caused by burning fossil fuels.

“Today, wind turbines produce almost 5% of the EU’s electricity. By 2020 we expect them to meet up to 17% -- the equivalent of 131 million average EU households and avoiding 333 million tonnes of CO2 annually. By 2030, wind energy could be meeting up to 35% of the EU’s electricity needs, equivalent to 241 million households and avoiding 600 million tonnes of CO2 annually. I think these fi gures speak for themselves.”

By Chris Rose, www.ewea.org/fileadmin/emag/winddirections/2010-04/

Inaugural issue of OSA's Energy Express focuses on gaining energy with solar ...

Inaugural issue of OSA's Energy Express focuses on gaining energy with solar concentrators

WASHINGTON, April 26�New devices that concentrate the sun's rays, increase the efficiency of solar cells, and help to lower the cost of solar energy, are featured in the inaugural issue of Energy Express, a new special bi-monthly supplement to Optics Express, the open-access journal of the Optical Society (OSA). Edited by Bernard Kippelen of the Georgia Institute of Technology, Energy Express launches today and will focus on research that encompasses the science and engineering of light and its impact on sustainable energy development, the environment, and green technologies. Research featured in Energy Express will highlight the role optics plays in energy efficiency and sustainability, from making solar energy economical to providing energy from fusion, to studying new combustion processes that can ease carbon dioxide sequestration, to monitoring the nitrogen cycle, and to realizing significant energy savings using solid-state lighting, such as inorganic and organic light emitting diodes (LEDs and OLEDs).

To underscore the importance of optics in energy, Energy Express will publish a series of Focus Issues dedicated to selected research areas. The first issue of Energy Express is a special Focus Issue dedicated to new developments in solar concentrators, a set of technologies that aim to increase the efficiency of the generation of solar energy. Roland Winston of the University of California Merced is the guest editor for this issue.

Solar concentrators hold great promise for delivering plentiful alternative energy and contributing to the world's energy needs in the future, since direct sunlight is by far the most abundant source of energy available on Earth. But while the basic technology behind solar panels has been around for decades, solar power still only contributes a tiny amount to the overall power consumed each year in the United States, for example. In 2008, it accounted for roughly 1 percent of U.S. renewable energy production, with all renewable sources together contributing only approximately 7 percent of the total amount of energy produced in the U.S. that year�the latest for which statistics are available from the U.S. Energy Information Administration.

One of the barriers to the widespread use of solar power in the U.S. is its cost. Currently, it is still significantly more expensive dollar-per-watt than power generated by burning coal, oil, or natural gas. If solar power generation is going to increase in the future, large-scale production will have to become cheaper�perhaps by either lowering the cost of solar cells or increasing the amount of power they generate.

Several articles featured in the inaugural issue of Energy Express focus on the latest emerging new technologies that aim to achieve this. These include new materials and designs for solar cells that can increase their efficiency; new approaches to concentrating the sun's rays to allow solar panels to make the most of the daylight; and applications of solar power that harness the sun's energy to remove the salt from seawater, generate chemical fuels, and power solid-state lighting.

Some highlights of the special Focus Issue on Solar Concentrators include:

LAYERED SOLAR CELL MATERIALS

One of the basic approaches to improving solar panels in the last several years has centered on increasing their efficiency�the amount of the sun's energy hitting the panels that they can convert into useable electricity. The greater the efficiency of a solar cell, the more energy it can produce when in the sun.

Commercially available flat-plate solar panels are currently around 19 percent efficient, but in the last several years, scientists have been able to do significantly better by making "multijunction cells." These stack several layers of ultra-thin materials on top of each other. Each separate layer absorbs a particular range of colors (or wavelengths) of light, and together they convert a broader spectrum of the sun's energy into electricity.

According to Sarah Kurtz and John Geisz of the U.S. National Renewable Energy Laboratory, the latest, most efficient cells in the laboratory can achieve efficiencies greater than 40 percent. In their Energy Express paper, they predict that this cutting edge will continue to move, and the best solar cells may reach 45 or 50 percent efficiency with further work.

The article, "Multijunction solar cells for conversion of concentrated sunlight to electricity" by Sarah Kurtz and John Geisz can be accessed at: http://www.opticsinfobase.org/oe/abstract.cfm?uri=oe-18-S1-A73.

CONCENTRATING LIGHT WITH LENSES AND SUN TRACKING

While multijunction solar cells can achieve higher efficiencies, their thin layers may rely on rare and expensive elements like indium and gallium in their design, and the cells themselves often must be constructed under exacting laboratory conditions. These factors make the best solar cells very expensive to produce.

One way to counter these costs is to increase the amount of energy the cells produce by concentrating the sunlight that falls on them. In one Energy Express paper, Valery Rumyantsev and colleagues at the Ioffe Physical Technical Institute in St. Petersburg, Russia describe such ways to maximize the amount of energy from solar cells by squeezing as much sunlight as they possibly can into them.

The Ioffe team is combining cells with Fresnel lenses�optical elements similar to the sort of shaped glass that allows lighthouse torches or theatrical spotlights to focus light into a strong beam. They also use sun-tracking devices to automatically orient solar panels with the direction of the sun as it moves across the sky.

In another paper, Roland Winston and Weiya Zhang of the University of California Merced describe a non-tracking solar concentrator that does not rely upon precise sun-tracking devices, which may add to the cost and complexity of installing and maintaining solar panels, they observe, and which may not be practical on residential rooftops.

Winston and Zhang have developed a stationary solar concentrator that concentrates sunlight up to four times for eight hours a day, year-round. This has the potential to reduce the number of expensive solar cells in a solar panel by four, they say.

The article, "Solar concentrator modules with silicone-on-glass Fresnel lens panels and multijunction cells" by Valery D. Rumyantsev can be accessed at: http://www.opticsinfobase.org/oe/abstract.cfm?uri=oe-18-S1-A17.

The article, "Pushing concentration of stationary solar concentrators to the limit" by Roland Winston and Weiya Zhang can be accessed at: http://www.opticsinfobase.org/oe/abstract.cfm?uri=oe-18-S1-A64.

IMPROVED DYES FOR CONCENTRATING SOLAR ENERGY

Marc Baldo and colleagues at the Massachusetts Institute of Technology report the latest research on another way to eke out more power from solar panels. They use an inexpensive technology known as luminescent solar concentrators to increase the usable energy falling from the sun onto solar cells.

These concentrators consist of glass or plastic sheets coated by a thin film of dye molecules. The dye absorbs specific colors of sunlight and then re-emits light at longer wavelengths that gets trapped within the glass and converted into electricity by small solar cells attached to the edges of the concentrator.

These concentrators are inexpensive and are a potential solution for lowering the cost of solar electricity, Baldo and colleagues say. In their paper, they are reporting a significant new improvement they achieved by suspending the dye molecules in a liquid crystal and controlling their orientation. In their article, they report the highest light trapping efficiency by a luminescent solar concentrator to date.

The article, "Dye Alignment in Luminescent Solar Concentrators: I. Vertical Alignment for Improved Waveguide Coupling" by C.L Mulder, P.D. Reusswig, A. M. Vel�zquez, H. Kim, C. Rotschild, M.A. Baldo can be accessed at: http://www.opticsinfobase.org/oe/abstract.cfm?uri=oe-18-S1-A79.

SOLAR FUELS

In their Energy Express paper, Aldo Steinfeld of ETH Zurich in Switzerland and Alan Weimer from the University of Colorado at Boulder review how concentrated solar energy can be used to produce clean chemical fuels for the power and transportation sectors. Thermochemical processes that make use of concentrated solar radiation as an energy source to drive high-temperature endothermic reactions have the potential to achieve high solar-to-fuel energy conversion efficiencies.

They describe solar thermochemical cycles to split H2O and CO2 via metal oxide redox reactions. They also describe solar processes and reactors in which coal, for instance, can be converted into high-quality synthesis gas (mainly H2 and CO), which can be further processed to Fischer-Tropsch liquid fuels with a solar-upgraded calorific value and, consequently, lower CO2 emissions per kWh. Ultimately, these solar-driven processes provide means of storing intermittent solar energy in a transportable and dispatchable chemical form.

The article, "Thermochemical Production of Fuels with Concentrated Solar Energy" by Aldo Steinfeld and Alan W. Weimer can be accessed at: http://www.opticsinfobase.org/oe/abstract.cfm?uri=oe-18-S1-A100.

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ABOUT ENERGY EXPRESS

As a special bi-monthly supplement to Optics Express, Energy Express is dedicated to rapidly communicating new developments in optics for sustainable energy. Energy Express will have original research side-by-side with review articles written by the world's leading experts in the science and engineering of light and its impact on sustainable energy development, the environment, and green technologies. For more information, see: http://www.OpticsInfoBase.org/ee.

ABOUT OSA

Uniting more than 106,000 professionals from 134 countries, the Optical Society (OSA) brings together the global optics community through its programs and initiatives. Since 1916 OSA has worked to advance the common interests of the field, providing educational resources to the scientists, engineers and business leaders who work in the field by promoting the science of light and the advanced technologies made possible by optics and photonics. OSA publications, events, technical groups and programs foster optics knowledge and scientific collaboration among all those with an interest in optics and photonics. For more information, visit www.osa.org.

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North Africa Finally Sees the Light

CAIRO, Apr 27 (IPS) - Europe's appetite for renewable energy and a shifting tide in domestic energy policies could turn North Africa into major exporter of solar power by the end of the decade."North Africa has all the right ingredients for producing the cheapest kilowatt hour of solar energy," says Amr Mohsen, CEO of Lotus Solar Technologies, a Cairo-based solar technology firm. "We're finally starting to see conditions align for harnessing this potential." Small projects using photovoltaic (PV) panels are moving ahead rapidly, but work has been slow on large concentrated solar power (CSP) projects that experts say are needed to overcome the region's dependence on fossil fuels. CSP projects use mirrors to concentrate the sun's heat, and produce steam that drives electrical generators. The technology is scalable and without the high capital costs associated with large-scale PV deployment. The first CSP projects in North Africa are expected to begin operation by the end of the year. Algeria's 150 MW power plant at Hassi R'Mel is scheduled to go online in October, followed by Egypt's 140 MW plant at Kureimat and Morocco's 450 MW plant at Ain Beni Mathar. The three integrated solar combined cycle (ISCC) power stations will feed steam generated by a solar field into the stream of a gas-fired plant to drive a turbine that produces electricity. The hybrid design was selected because the shared turbine and equipment lowers capital costs, while the gas-fired unit compensates for fluctuating power output from the solar arrays, which generate electricity only during daylight hours. Critics charge that the low solar fraction -- between four and 15 percent -- undermines the value of these projects as commercial models. Officials counter that successful operation will pave the way for larger, dedicated solar plants to follow. "Our (ISCC) plant at Kureimat is a pilot project," says Khaled Fikry, head of research and development at Egypt's National Renewable Energy Authority. "We will gain technical experience that we will use to build more power plants that utilise pure solar capacity." Sunny skies and large tracts of underutilised desert land make North Africa an ideal location for low-cost power generation, a 2007 study by the German Aerospace Centre concluded. Harnessing the solar energy falling on just 6,000 square kilometres of desert in North Africa would "supply energy equivalent to the entire oil production of the Middle East of 9 billion barrels a year," the report said. European investors have cued in to the region's untapped potential. Two ambitious schemes envision the construction of a series of solar fields in the Sahara desert that would export surplus electricity to Europe via high voltage transmission lines. The Desertec project is a 400 billion euro private sector initiative that aims to tap renewable energy sources in North Africa to satisfy 15 percent of Europe's electricity demand by 2050. Up to 80 percent of the electricity generated, mostly by CSP power stations, would be used by domestic consumers. The remaining 20 percent would be transported to buyers in Europe. The Mediterranean Solar Plan, a flagship project of the Union for the Mediterranean (a union of European countries with others that border the Mediterranean Sea) follows a similar model. The project will invest over 40 billion euros to build solar facilities and purchase their output to help Europe achieve its goal of 20 percent renewable energy use by 2020. "A lot of momentum has been added through the activities of these initiatives," says Kilian Baelz, an expert in renewable energy finance. "They have really made North African governments think again about how to implement renewable energies." Tunisia launched a 2.7 billion dollar scheme in October 2009 that is targeting a 22 percent reduction in the country's demand for conventional energy sources by 2016. The Tunisian Solar Plan funds over 40 renewable energy projects and introduces subsidies on solar panels. Morocco, which imports 97 percent of its fossil fuel needs, recently unveiled a 9 billion dollar project to produce 2 GW of solar power by 2020. Five solar power stations will generate nearly 40 percent of the country's total installed power. North African governments are also looking to dismantle oil and gas subsidies that have undermined the adoption of renewable energies. "Subsidising fossil fuels is putting a very high burden on the finances of these countries," says Hani El-Nokraschy, vice-chairman of Desertec's supervisory board. "Even if they are self-producers of oil or gas, they have the chance to generate the electricity they need from the sun and sell the fuel they would have burned on the world market for a higher profit." He estimates that with subsidies removed, CSP has already achieved grid parity. While benchmark Brent crude oil stands at about 85 dollars a barrel and is expected to rise in the coming years, economies of scale are driving down the cost of solar power. "The price of electricity from CSP power stations is equal to the price of electricity of burning oil at 50 dollars per barrel," El-Nokraschy tells IPS. "And by doubling production you would get a 10-20 percent cost reduction." Governments cannot afford to wait. El-Nokraschy says North Africa must install at least 100 GW of exportable renewable energy capacity by 2050 to reduce Europe's greenhouse gas emissions. Failure to do so would -- if predictions about global warming are correct -- result in a plus 2.0 degree Celsius rise in global temperature, leading to severe weather and a rise in sea levels. "This would be catastrophic and would cost us much more than the price of building enough CSP to prevent it," he adds. (END/2010)

IntertechPira's Photovoltaics Summit and Concentrating Solar Thermal Power ...

PR Log (Press Release) – Apr 26, 2010 – What:  IntertechPira’s 5th annual Photovoltaics Summit 2010 will take place May 3-5, 2010, and will provide an in-depth analysis of the world’s photovoltaics (PV) markets, new and emerging PV technologies, developments with thin film PV, financing and access to capital and advances with PV materials and manufacturing. Concentrating Solar Thermal Power 2010 follows immediately after the Photovoltaics Summit (May 5-7, 2010) and continues the focus on the solar industry covering the current market and recent trends for the CSP industry, the latest issues in planning and plant proposals, regulatory concerns, finance and purchasing requirements and technical developments and materials advancements. Who:  The solar industry’s key players! Photovoltaics Summit 2010 will feature more than 20 presentations from industry experts including Brian Robertson, CEO, Amonix; Glen Davis, Chief Executive Officer, Agile Energy, Brian Murphy, President & CEO, Fulcrum Technologies; Charles Hanley, Solar Systems Manager, Sandia National Laboratories; Gerald Fine, CEO & President, Schott Solar Inc.; Roger Little, Chairman & CEO, Spire Corporation; Subhendu Guha, SVP/Chairman, United Solar Ovonic; and Thomas Rooney, CEO, SPG Solar and many more.   The program for Concentrating Solar Thermal Power 2010 blends more than 30 presentations from a government focus, including the National Renewable Energy Laboratory, the California Energy Commission and the U.S. Department of Energy, with some of the most innovative companies in the industry like SolarReserve, Stirling Energy Systems Inc., BrightSource Energy, Flabeg, Abengoa Solar, ACCIONA Solar Power and eSolar.   When: Monday, May 3 through Friday, May 7, 2010 Where:    Hotel Solamar San Diego 435 6th Ave, San Diego, CA 92101 Contacts:  For all media inquiries, including press pass information prior to the conference, please contact Danielle Marks at 207-781-9637 or Danielle.marks@pira-international.com. Additional Information: •   To download the complete agenda and event schedule for the Photovoltaics Summit 2010, visit www.photovoltaicssummit.com. •   To download the complete agenda and event schedule for Concentrating Solar Thermal Power 2010, visit www.cstpower-conference.com # # # About IntertechPira IntertechPira provides events, market research, publications, strategic and technical consulting to niche, emerging and high growth industries. Market coverage includes lighting and displays, alternative energy, home and personal care, industrial biotechnology, performance materials and chemicals. IntertechPira is a division of Pira International. - - - end - - -

Can the Sahara light up Europe with solar power?

A Desertec map of power from the Sahara to Europe. Source: Desertec Foundation

Desertification is a dirty word, but deserts are not entirely without their uses. Plans are underway to transform swathes of the Sahara into a glimmering sea of mirrors, with the goal of piping cheap, clean and efficient solar energy into the heart of Europe.

Dubbed the Desertec Industrial Initiative, it will create vast fields of concentrated solar power (CSP) plants – arrays of mirrors which focus the sun's energy to turn water into steam, and so drive electrical turbines. From there, the power will flow through a network of low loss transmission cables to pipe electricity into the existing European grid, via Spain.

The £240 billion venture, which brings together such big energy names as Siemens and E.On, is designed to meet as much as 15% of Europe's fast-rising electricity demand by 2050. And the first electrons could be coming onstream in as little as five years' time…

This, says Jonathon Porritt, is something of a second coming for CSP. "It was first introduced after the oil shocks of the 70s and early 80s, but as soon as oil prices fell, all investment in that particular technology stopped."

But now that the cost of carbon is playing into the economics of energy production, CSP is looking increasingly promising. According to Keith Bowen, director of engineering at UK-based Circadian Solar, it holds two trump cards: efficiency and scale.

"It scales extremely well," he says. As the size of the plant increases, the relative costs come down. Large CSP plants can produce power for a quarter of the cost of that generated by standard solar photovoltaics, adds Bowen.

Efficiency is improving rapidly, too. Twenty years ago, the maximum efficiency you could get from the sun was 15-20%, compared with over 50% for fossil fuels. "Today," says Bowen, "[CSP is] closer to 40%."

And for those who live in or near deserts, that means it can also play a role in securing another vital asset: water. CSP is ideally suited to powering desalination plants. Taking salt out of water is a simple enough process, but one that uses a lot of energy. For developing countries where power shortages are a growing problem, as well as luxury resort islands where resources are scarce, Bowen argues, CSP could be an ideal solution – producing clean water and power at the same time.

A common criticism directed at both solar and wind power is that they're inherently intermittent: the sun only shines in the day, the breeze doesn't always blow. But recent advances in CSP could keep the power flowing all night long. Desertec is designed to operate 24 hours a day by superheating water to temperatures of 260ºC, sufficient to create steam at high enough pressures that it will keep driving turbines and generating electricity long after the sun has set.

An alternative approach, which is being explored by Solar Reserve in California, is to use the thermal energy to melt salt. Molten salt retains heat long enough to drive a turbine for much of the night. The company is hoping to build a 150MW solar plant in the Sonaran Desert, which would use 17,500 mirrors, each 24 metres wide, to heat salt to 565ºC. This would be enough to store up to seven hours of the sun's energy.

There's a lot of promise in this sort of approach, says Bowen. "It's been around for a while and is fairly well developed." But, he says, like other forms of CSP, it tends to work best on a grand scale, typically plants of 50MW or above.

Another development that should also help to spur CSP is the availability of better solar maps. These are detailed layouts of the earth's surface that show historical information about the amount of sunlight different locations receive. These data sheets have long been available from places like the US Government's National Renewable Energy Laboratory in Colorado, quantifying typical solar trends in different geographic regions. Now companies like 3TIER in Seattle, Washington, are making it possible to target locations for solar power not just by general region but at much higher resolutions. This enables prospective CSP developers to zero in on ideal sites.

3TIER's maps are the first to take into account not just solar activity but also the impact of long-term and seasonal wind variations. These can be significant between locations just a few kilometres apart, and affect the energy required to continually readjust the position of the mirrors.

Using this sort of approach, it has become possible to choose sites that will optimise energy output, says Gerry Wolff, Coordinator of DESERTEC-UK, an independent advisory group of CSP enthusiasts. In fact, he says, it's been calculated that a single patch of the Sahara, just 114,090 square kilometres in area, receives enough sunlight to meet the entire world's electricity demands through CSP.

So what's stopping us? Partly cost, says Wolff. Hovering at around 10-20 US cents per kilowatt hour, CSP "looks a little bit on the expensive side", compared with gas at about 5 cents. But this is likely to change when the volumes increase, he says. Indeed, three studies carried out by the German aerospace industry suggest that CSP could eventually become one of the cheapest sources of electricity in Europe. "Until about 2017, electricity from CSP will probably be more expensive," concludes Wolff. But then, as economies of scale kick in, it will become cheaper and increasingly attractive.

It is certainly attracting growing interest. The World Bank recently announced it is investing $5.5 billion into the development of CSP across North Africa. And last year, Morocco, the only North African state with no oil production of its own, declared its intention to become a pioneer in CSP as a way of cutting reliance on oil and gas imports. It plans to build five plants with a total energy production of 2,000MW by 2020.

In light of such investment, the Desertec Industrial Initiative seems less of a leap of faith. The technology to transmit the electricity across the vast distances to Europe has been well established for decades, says Wolff. But realistically, it only needs to reach as far as Spain, since Europe already has an international electrical transmission grid. This, Wolff adds, acts a bit like a pond, in the sense that it doesn't matter where you fill it up from. "So countries as far north as Sweden would immediately benefit."

The consensus on CSP now, says Jonathon Porritt, is that although it's extremely ambitious, it's also quite realistic. Besides the potential to generate vast amounts of electricity, the growing need for renewable sources of desalinated water makes CSP an excellent candidate for support, he says.

The irony is that in years to come we may find ourselves looking to deserts not just for power, but also for water.

Solar, lighter

CSP may be a simple idea, but it doesn't come cheap. It's not easy building in the middle of a desert, and there are fairly substantial costs involved in constructing all the mirrors and central receiver towers, which have to withstand extreme temperatures and continuously pump water up to the collector. One solution to this is to dispense with the steam turbines and instead concentrate the light on highly efficient photovoltaic solar cells – the approach taken by Circadian.

Another novel approach, under experimentation at the Tokyo Institute of Technology, is to construct cheaper lightweight towers, containing a second set of mirrors at the light collection point. These are used to redirect the light to heat water at ground level, precluding the need to pump it up the tower.

Concentrated solar attracts big-name investors

(Credit: Amonix)

The concentrated photovoltaics industry got another nod of confidence Wednesday.

Amonix, a CPV manufacturer, announced it has raised $129.4 million in Series B funding, with Kleiner Perkins named the lead investor. The Seal Beach, Calif.-based company said it will use the funds to expand manufacturing in an effort to get its CPVs out the door more quickly.

Concentrated photovoltaic (CPV) solar systems differ from regular solar panels in that they use lenses or mirrors to concentrate sunlight on solar cells to maximize the amount of electricity you can generate from solar rays. The technology, while more expensive than regular PVs, is believed to offer more efficiency in terms of electricity and the amount of land or space needed to use them.

Amonix makes large-scale systems that would be sold to and used by utilities.

It's not a new technology per say, but one that's become perfected to reach scalability and attract the kind of investment needed to spur its popularity in the market. Amonix, in particular, claims to have gotten costs down by using less-expensive Fresnel lenses for amplifying sunlight and concentrating that onto its solar cells.

Even among green-tech developers offering clean energy options, there are environmental hurdles to be crossed, as solar farms take up space and still require transmission lines to tie in to the electric grid. Environmental agencies and the U.S. government are working to offer land solutions and avoid time-consuming legal challenges to developers. Concentrated solar, because it can offer more electricity from less physical space, is becoming more attractive as its technology gets less expensive. That's why Amonix, and its main rival SolFocus, has also been scoring big with investors and projects.

SolFocus garnered a $103 million (80 euro) deal with Empe Solar, a Spanish group promoting solar energy projects in 2008. In March of this year, SolFocus announced a deal with a California community college to install a 1-megawatt high-concentrator photovoltaic (CPV) solar farm on 6 acres of its campus.

So unlike most green tech investment stories you read about, Amonix is not a start-up. Rather, it has been developing solar technology for years. The company was actually founded in 1989 and by 1994 it had made a solar cell with 25.5 percent efficiency. R&D Magazine lauded that solar cell as one of the most significant breakthrough products of the year.

Amonix has already raised $25 million in Series A funding from the Goldman Sachs Group and MissionPoint Capital, as well as garnered $15.6 million in Department of Energy grants and $9.5 million in federal stimulus funds.

Other investors in the deal include Adams Street Partners, Angeleno Group, PCG Clean Energy & Technology Fund, Vedanta Capital, New Silk Route, The Westly Group, and existing Amonix investor MissionPoint Capital Partners.

New Solar Receivers Boost Efficiency

Posted: April 25, 2010 New Solar Receivers Boost Efficiency (Nanowerk News) Siemens has optimized the receiver tubes for solar thermal facilities. The latest model, the UVAC 2010, is currently the most efficient solution on the market and improves the efficiency of a 50-megawatt (MW) facility by five percent. The tubes run along the longitudinal axis of parabolic troughs, on which the sunlight is focused. Synthetic thermo oil is used as a heat transfer medium that absorbs the solar energy and heats up water. A heat exchanger converts the heated water into steam, which is used to drive a turbine. The efficiency of a solar power plant largely depends on how well the receivers can absorb the sun�s rays and prevent the stored heat from being lost.

The principle of concentrated solar power (CSP) plants is simple: curved sun-tracking mirrors capture sunlight and concentrate it on a solar receiver tube. A transfer medium, mainly oil, flows through this tube, and is heated by the concentrated solar radiation. This medium transfers its heat to water, generating steam. The steam drives a turbine, which then drives a generator. Finally, the generator produces electricity.While the technical principles of CSP were established a long time ago, the current challenge is enhancing plant efficiency. Experts expect that CSP plants could be economically competitive within 15 years, allowing the gradual phase-out of subsidies for electricity generatedin these plants. According to the International Energy Agency (IEA), solar thermal facilities only generated one gigawatt (GW) of electricity worldwide in 2009. However, additional power plants with a total capacity of 15 GW are either being developed or under construction. The latest information from the IEA indicates that solar thermal energy could cover 12 percent of the world�s electricity needs in 2050. State-of-the-art technology for solar thermal plants is based on long parabolic troughs, in the center of which receiver tubes absorb the solar energy. Such facilities are currently generating tens of megawatts of electricity and have an overall efficiency of slightly more than 25 percent on average. Special selective coatings play a key role in the new solar receiver from Siemens Renewable Energy. These coatings can absorb over 96 percent of the solar energy and also reduce heat loss to less than nine percent, depending on the temperature within the tube. The heat transfer medium heats up to around 390 degrees Celsius as it flows through a stainless steel tube that is housed in a glass cylinder. In the gap between the tube and the cylinder is a vacuum to provide additional thermal insulation. The new components can increase the output of a 50 MW facility by about 6,500 MWh per year, compared to conventional solutions. More than 220,000 UVAC receivers are currently in use worldwide. At the end of March, Siemens obtained another order for solar receivers from the solar thermal power plant at Les Borges Blanques in northern Spain. The technology was developed by the successful solar thermal specialist Solel Solar Systems Ltd., which was acquired by Siemens in fall 2009. As a result of the acquisition, Siemens Energy�s portfolio now contains all of the key components for parabolic trough power plants (solar fields and receivers, as well as the power-station unit containing the steam turbine). As a result, Siemens Energy will be able to further optimize the overall efficiency of the facilities. Source: Siemens (press release)

Solar energy in 2009

Solar energy in 2009 18 de abril de 2010

Total U.S. solar power from photovoltaic (PV) and concentrating solar power (CSP) technologies climbed past 2,000 MW, enough to serve more than 350,000 homes. Total U.S. solar thermal capacity approached 24,000 MWth.

The Solar Energy Industries Association (SEIA) released the 2009 U.S. Solar Industry Year in Review, finding another year of strong growth despite the economic recession.

Despite the Great Recession of 2009, the U.S. solar energy industry grew— both in new installations and employment. Total U.S. solar electric capacity from photovoltaic (PV) and concentrating solar power (CSP) technologies climbed past 2,000 MW, enough to serve more than 350,000 homes. Total U.S. solar thermal capacity approached 24,000 MWth.

A doubling in size of the residential PV market and three new CSP plants helped lift the U.S. solar electric market 37 percent in annual installations over 2008 from 351 MW in 2008 to 481 MW in 2009. Solar water heating (SWH) installations managed 10 percent year-over-year growth, while the solar pool heating (SPH) market suffered along with the broader construction industry, dropping 10 percent. Solar industry revenues also surged despite the economy, climbing 36 percent in 2009.

Another sign of continued optimism in solar energy: venture capitalists invested more in solar technologies than any other clean technology in 2009. In total, $1.4 billion in venture capital flowed to solar companies in 2009.

Solar provisions in the American Recovery and Reinvestment Act of 2009 (ARRA) got off to a slow start but continue to ease the pressures of the credit crisis. As of early February 2010, more than 46 MW of solar capacity has been deployed with the help of the Section 1603 Treasury grants in lieu of the investment tax credit (ITC). Solar equipment manufacturers have been awarded $600 million in manufacturing tax credits under ARRA, representing investments in new and upgraded factories of more than $2 billion. For an industry that had a total U.S. volume of roughly $4 billion, this signals huge optimism about near-term growth.

Federal Solar Policy

The significant solar policy changes in 2008 set the bar high but 2009 brought its own share of federal solar policy victories. After obtaining a long-term extension of the 30-percent investment tax credit in October of 2008, the economy put the brakes on the tax equity market.

Fortunately, 2009 began with the passage of ARRA, in which Congress established the Treasury Grant Program that allows the commercial tax credit to be taken as a cash grant for a limited time and lifted the $2,000 cap on the residential investment tax credit for solar thermal installations, for the first time allowing a full 30-percent ITC on solar water heating and other solar thermal technologies for the homeowner.

ARRA also eliminated the penalties for subsidized energy financing, encouraging state and local programs that subsidize solar installations without penalizing the customer, and it permitted Master Limited Partnerships to utilize the ITC for the first time, opening additional financing opportunities to the industry.

Among other provisions were a new tax credit for renewable energy manufacturing facilities and billions of dollars in additional funding for solar research and deployment financing.

Treasury Grant

The grant created by ARRA reduces the need for tax equity partners and significantly lowers the transaction costs for a solar project. As of early February 2010, 182 solar projects had received Treasury grants totaling $81 million—representing more than $271 million in solar energy investment. The 13 solar thermal and 169 solar electric projects receiving the grant are spread over 30 states and the electric systems total 46.5 MW. Unless Congress extends the program, it will end December 31, 2010.

Manufacturing Investment Tax Credit

With the economy suffering record job losses, spurring domestic manufacturing was a primary concern for Congress and the Administration. The ARRA created a 30-percent manufacturing investment tax credit (MITC) for equipment that makes renewable energy components. The Department of Energy (DOE) announced the recipients of the $2.3 billion in credits in January 2010. Of the 183 winning projects, 60 were factories supplying the solar energy industry, accounting for nearly a third of the selected projects and 46 percent of the awarded funds. These tax credits will create thousands of new domestic solar manufacturing jobs.

Department of Energy Funding

Of the $16.8 billion in ARRA funds directed to DOE’s Office of Energy Efficiency and Renewable Energy, $115 million went to the Solar Energy Technologies Program, $1.6 billion for Clean Renewable Energy Bonds (CREBs), $2.7 billion went to fund Energy Efficiency and Conservation Block Grants and $3.1 billion was provided for State Energy Program (SEP) grants.

The SEP grants in particular are helping support the deployment of solar energy equipment around the country. Virginia, Maryland, Delaware, Massachusetts, New York, Pennsylvania, Vermont and Wyoming are using their SEP allotments to fund existing rebate programs and create new programs where none existed before. Other states are using the funds for competitive grants, large installations, manufacturing incentives, research centers, low-interest financing and worker training.

Solar Industry Driving Employment

Answering ARRA’s call, the solar energy industry is putting Americans back to work. While the recession has taken its toll on the solar industry, the many provisions of ARRA, the Emergency Economic Stabilization Act of 2008 (EESA) and the hard work of tens of thousands of solar workers have helped the industry maintain modest growth.

Some sectors were flat and others declined slightly, but overall employment in the solar industry increased by 10,000 people from 2008 to 2009. In addition, the growth in economic activity from the industry and its employees supported an additional 7,000 induced jobs for a total economic impact of 17,000 new jobs in 2009. In total, the solar industry and its supply chain now support roughly 46,000 jobs in the U.S. With growth expected to continue, that number is likely to surpass 60,000 by the end of 2010.

Manufacturing on the Rise

Though the U.S. has lost the lead in PV manufacturing that it held in the 1980’s, both domestic capacity and production continue to grow steadily, keeping pace with domestic demand. The U.S. already has enough manufacturing capacity to meet all domestic demand for solar equipment and, with the MITC driving capacity expansion, will likely maintain self-sufficiency and robust two-way trade going forward.

Many of the leading solar companies in the world are headquartered in the U.S., many have major existing manufacturing operations and many more have plans to set up new facilities in the states to meet growing demand. These companies supply all types of solar energy equipment for PV, CSP, SWH and SPH.

State Solar Policy

State policies continue to be some of the primary drivers for solar energy markets in the U.S. State net metering and interconnection rules define the market access for on-site distributed generation solar electric systems and even small incentive programs can draw attention to the solar industry.

In 2009, new incentives emerged in Pennsylvania, Virginia, Vermont and elsewhere, while some states used ARRA funds to bolster existing programs. The year also brought expansion of PACE financing and continued evolution of state renewable energy standard (RES) policies.

PACE Financing on the Rise

Property-assessed clean energy (PACE) financing began spreading across the country in 2009. Since the City of Berkeley became the first to adopt this financing mechanism, 16 states have enacted PACE-enabling legislation: California, Colorado, Illinois, Louisiana, Maryland, Nevada, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia and Wisconsin.

These provisions will allow homeowners and business-owners to finance solar energy systems through municipal or other government-backed bonds via an assessment on their property taxes. This ensures the availability of credit, reduces the upfront cost and facilitates transfer of the system to new property owners in the event of a sale.

State RES Updates

Eleven states modified their RES solar requirements in 2009. Of the 30 states and District of Columbia that have an RES, 18 now have a solar or distributed generation (DG) carve-out and 5 provide extra credits for solar or DG. Nevada increased its carve-out from 5 to 6 percent. Missouri upped its overall standard to 15 percent with a 2-percent solar carve-out (0.3 percent of retail sales). Illinois added a 6-percent carve-out (1.5 percent of retail sales). Washington, D.C. doubled its overall goal to 20 percent and increased its solar carve-out to 0.4 percent of retail sales.

At least four states now include solar water heating as a qualifying RES energy source. While there has been little activity from this in the past few years, Arizona’s law is starting to drive a more meaningful SWH industry, in part, by purchasing associated renewable energy credits (RECs) upfront, reducing the initial investment costs of SWH systems in that state.

Photovoltaics

The PV industry managed to maintain growth in 2009 despite difficulties in the housing and construction sectors and cumulative grid-tied capacity sailed past the 1 gigawatt (1,000 MW) mark by installing 429 MW. An estimated 40 MW of off-grid capacity was also added. However, year-over-year growth in annual grid-tied capacity additions of 38 percent fell short of the 84 percent growth in 2008.

Notable growth came in the utility sector

Two utility-scale solar power projects became the largest and second largest installations in the U.S. The 25-MWac DeSoto Next Generation Solar Energy Center and the 21-MWac FSE Blythe bumped the 14-MWac Nellis Air Force Base installation into third place. which nearly tripled from 22 MW in 2008 to 66 MW in 2009. Residential installations were buoyed by the removal of the $2,000 cap on the ITC, lifting volume 101 percent from 78 MW in 2008 to 156 MW in 2009.

Price Declines

2009 marked a second year of major price declines for PV modules.6 Prices have fallen to $1.85-$2.25 per watt from $3.50-$4.00 per watt in mid-2008, a drop of over 40 percent. With module prices accounting for up to half of the installed cost of a PV system, these prices are beginning to put downward pressure on system prices. Average installed cost fell roughly 10 percent from 2008 to 2009.

What to Expect in 2010 This is despite the large shift to the more labor-intensive (and expensive) residential installations. With new innovations in the installation process, increasing economies of scale and innovative equipment increasing energy yields, the cost reductions are expected to continue. PV is becoming an increasingly attractive and secure investment.

PV is getting ready to go big. Residential and commercial rooftop installations are expected to remain strong and the utility-scale PV is expected to grow significantly, with more than 6,000 MW in announced projects in the pipeline. With the Treasury Grant Program set to expire at the end of the year, many in the solar industry wish to meet the start-construction deadline of December 31, 2010. Most industry analysts expect another year of growth in the PV industry.

Concentrating Solar Power

New U.S. concentrating solar power (CSP) facilities have been added in three of the last four years following 15 years of inactivity. Three new CSP facilities came online in 2009, the 5-MWac Sierra SunTower from eSolar, the 2-MWac Holaniku trough from Sopogy, and the 5-MWac Kimberlina linear Fresnel system from AREVA Solar (formerly Ausra). The Sierra SunTower is the first power tower operating in the U.S. in a decade and Holaniku is the first CSP facility to come online in Hawaii.

Siting Developments

In 2009, Secretary of the Interior Ken Salazar announced two initiatives to speed the development of solar energy on public lands. First, four Renewable Energy Coordination Offices were established across the west (in California, Nevada, Wyoming and Arizona), along with renewable energy teams in five other offices. Second, the Bureau of Land Management (BLM) identified 14 solar energy projects that were in position to qualify for ARRA-related funding, if permitted, during 2010. BLM and the U.S. Fish & Wildlife Service have focused their resources on getting these “fast-track” projects through the permitting process so they can commence construction by December 31, 2010.

Pipeline

The U.S. now has 432 MW of operational CSP plants in commercial production (as of March 2010), making it the world leader in installed CSP, and more plants are on the way. Several projects are expected to come online before the end of the year, and many additional projects will begin construction before the end of December and meet the deadline to qualify for the 30-percent Treasury grant.

At least three additional CSP facilities are likely to come online in 2010: a 2-MWac Stirling dish installation in Phoenix, Ariz., a 4-MWth trough plant displacing coal-fired generation in Grand Junction, Colo., and the 75-MW Martin Next Generation Solar Energy Center hybrid trough in Martin County, Fla.. With the completion of these three projects by the end of the year, the U.S. will maintain its healthy lead over Spain in CSP capacity, with more than 500 MW installed.

Solar Thermal

Solar heating and cooling technologies saw a mixed year in 2009. Solar water heater (SWH) shipments managed modest growth for the fifth consecutive year with the help of the expanded federal investment tax credit. Solar pool heating (SPH) experienced a third year of decline, mirroring struggles in the housing market. SEIA estimates SWH collector shipments grew 10 percent to 147 MWth and SPH shipments sunk 10 percent to 699 MWth for the year.

SEIA expects continued growth in SWH in 2010. This year, California will launch the most ambitious state SWH incentive program with the goal of installing 200,000 SWH systems. In addition, increased use of SWH to generate renewable energy certificates (RECs) to meet state renewable energy standards could drive additional deployment in some states as we began to see in Arizona last year. This optimism is mirrored by the many new products seeking certification from the Solar Rating and Certification Corporation, the testing body charged with certifying equipment for eligibility to take the federal ITC.

While the real estate market continues to impact the solar pool heating sector, SEIA is working to help commercial pools take advantage of solar energy. Nearly 300,000 non-residential pools at hotels, schools, gyms and physical therapy centers in the U.S. need year-round heating. Heating these pools results in as much as 1 million metric tons of carbon-dioxide pollution each year. Current law prohibits these facilities from taking advantage of the federal ITC.

ENERGY STAR

Solar water heating equipment got a boost this year by becoming eligible to sport the ENERGY STAR label. As of publication of this report, there are already 279 ENERGY STAR-certified solar water heaters. Many solar water heaters will now benefit from the brand recognition and trust that many consumers associate with the program.

Solar Cooling

While solar cooling technologies have yet to take off in the U.S., the potential is enormous. More than 60 percent of energy consumed residential and commercial buildings is for thermal services. Of that, water heating accounts for about one quarter. The rest is used for space heating and cooling, a huge growth opportunity for solar energy over the next few years.

Solar Policy in 2010

The American Recovery and Reinvestment Act aimed to stimulate the economy through creation of green jobs and, with the help of several key policies, the solar industry has delivered. The Treasury Grant Program, the Loan Guarantee Program and the Manufacturing Investment Tax Credit in particular have driven a sizable increase in solar employment. However, funds and timeframes for these programs were limited.

The TGP, which provides a grant in lieu of the investment tax credit (ITC) for projects that begin construction before the end of 2010 and come online before the end of 2016, was intended to help the solar industry finance projects at a time of limited tax equity. However, the program did not launch until July of 2009, shortening the effective length of the program by nearly half a year. What’s more, the tax equity markets do not yet show the signs of recovery necessary for a smooth return to tax credit incentives. To help ensure a liquid solar market, SEIA is supporting the effort to extend the “commence construction” deadline for this program through 2012.

ARRA provided $6 billion for the LGP, enabling capital investment of up to $90 billion. However, $2 billion of these funds were used by Congress to pay for an extension of the “Cash for Clunkers” new car rebate. SEIA is seeking restoration of these funds to support an additional $30 billion in renewable energy deployment.

The MITC created by ARRA provided for only $2.3 billion in credits. While solar energy equipment manufacturing received roughly a third of these credits, global demand for solar equipment will continue to rise and extending this credit will help ensure that U.S. manufacturing stays competitive with other countries offering generous incentives to attract new facilities. SEIA is pursuing the extension of this credit for solar manufacturing through 2016.

Solar Bill of Rights

In October 2009, SEIA launched its “Solar Bill of Rights” campaign. The Solar Bill of Rights is SEIA’s grassroots advocacy effort to engage with all Americans, politicians, activists and celebrities to build support for eight rights designed to create a policy environment that allows solar to compete on a level playing field with fossil fuels. Nearly 2,000 people signed the Solar Bill of Rights during the first four months of the campaign.

International Solar Round-Up 2009

Solar at Copenhagen

SEIA, along with the European Photovoltaic Industry Association, lead the effort at United Nations Framework Convention on Climate Change (UNFCCC) to show all participants and observers that solar energy is ready to meet the climate challenge. SEIA brought together solar associations from around the globe to produce “Seizing the Solar Solution: Combating Climate Change Through Accelerated Deployment,” a report that outlines solar energy’s potential to reduce pollution that causes climate change in developed and developing nations alike.

Copenhagen marked the solar industry’s first major presence in the 15-year history of these climate negotiations. As the world moves closer to a carbon-constrained economy, SEIA will continue make sure governments and business are prepared for the solar solution.

Germany

Germany continued its steady growth yet again, regaining its title as the largest PV market by installing 3,800 MW of new capacity in 2009. This represents a doubling of the 1,500 MW installed in 2008 and is attributable, in part, to the improved project economics resulting from the decline in module prices. This growth has caused the German government to pursue an additional mid-year cut in incentives in 2010 above and beyond what was already scheduled but the country is expected to remain the single largest market for PV in 2010. Germany continues to be one of the largest market for solar thermal installations.

Spain

After rocketing past Germany to become the largest PV market in 2008, a drastic reduction in incentives pushed Spain down to 180 MW in new PV and CSP capacity for 2009, compared to 2,710 MW in 2008. Not all news was bad; Spain added more new CSP capacity than any other country in 2009, leading both the U.S. and China by a wide margin with 120 MW added. Spain ranks second after the U.S. in total CSP capacity with 181 MW installed.

Italy

Installations in Italy more than doubled from 2008’s 338 MW to roughly 700 MW in 2009, putting it in second place for new capacity for the year. The country’s strong incentives and good solar resources should help the market stay strong in 2010.

Japan

After two stagnant years, Japan recovered to have its best year ever, installing 484 MW, edging out the U.S. for the third place for annual capacity additions. This resurgence was driven in part by the falling equipment costs and in part by new incentives (roughly US$0.80 per watt) that went into effect in January 2009.

Czech Republic

The Czech Republic emerged as one of the top markets for PV last year with annual installations jumping to 411 MW. Though the country ranked fifth in installations, it installed more new PV per capita (roughly 40 watts per person) than any country except Germany in 2009. The massive growth—from just over 50 MW in 2008—was due do the country’s generous US$0.63 per kWh solar incentives. However, this rapid ramp-up in solar capacity has prompted a reduction in its feed-in tariff payments.

China and India

Both China and India made headlines in 2009 when they independently announced plans to expand their solar power capacities to 20,000 MW each by 2020. If these plans move forward, Asia will become a major demand center for solar energy equipment after several years of expanding manufacturing capacity.

Solar’s Growing Role in the US Energy Mix

Though solar energy continues to account for less than 1 percent of the U.S. energy supply, its contribution is expected to rise dramatically in the coming years as costs continue to decline making it more competitive in more states. This natural evolution will help drive demand in places that have yet to see the development of significant markets. Other states will see even more growth as RES carve-out provisions begin to require more and more capacity.

Lawrence Berkeley National Laboratory estimates that compliance with existing solar and distributed generation carve-outs will require roughly 9,000 MW of solar capacity by 2025. In the short term, these carve-outs will help provide a base level of installations and grow the industry to a size that supports strong economies of scale.

In addition to satisfying carve-out requirements, solar is showing increasing competiveness against fossil fuels. When compared to the high cost of generation in places like Hawaii, where most electricity is generated with oil, or when compared to peaking generators, solar energy looks increasingly attractive.

The rising cost of fossil fuels due to dwindling supplies and increased international demand ensure that the trend toward solar competitiveness continues. Any major movement at a regional, national or international level to regulate greenhouse gas emissions or to put a price on emissions will only accelerate this trend. This means that those looking to hedge against volatile and increasing energy prices will do well to turn to solar energy.

A Vision for the Future

Later this year, the U.S. Department of Energy is expected to release a report that explores the potential for solar energy to provide a significant share of the nation’s electricity by 2030. The report will explore the costs and benefits of realizing this solar-powered future and paint a picture of how it would work.

This vision would require hundreds of thousands of new solar megawatts, many times more than the current global solar capacity. However, this industry has shown extraordinary ability to grow quickly to meet any demand.

What’s a Watt?

Watt (W): A watt is a unit of power (like horsepower used to measure engines) that measures the rate of flow of energy. Solar equipment is often measured in peak watts or maximum power output rating. 1 W = 1 joule/second. (A joule is a unit of energy equal to 0.24 calories.)

Kilowatt (kW): 1 kW = 1,000 W or 1.34 horsepower.

Megawatt (MW): 1 MW = 1,000 kW = 1,000,000 W. Depending on location and configuration, 1 MW of solar power capacity can provide 1,300 to 2,500 MWh (1.3 to 2.5 million kWh) of electricity per year, enough to supply 120 to 220 average American homes.
Gigawatt (GW): 1 GW = 1,000 MW = 1 million kW = 1 billion W

Kilowatt-hour (kWh): A kilowatt-hour is a unit of energy necessary to provide 1 kW of power for 1 hour. 1 kWh can light a 100-W light bulb for 10 hours. The average American household uses 936 kWh of electricity per month.
(EIA, http://www.eia.doe.gov/cneaf/electricity/esr/table5.html )

Watt-thermal (Wth): Solar thermal systems (water heating, pool heating, etc.) do not provide power but instead provide thermal energy or heat. However, to roughly compare solar thermal capacity to solar electric capacity, thermal capacity is reported in watts-thermal by treating one square meter of collector area as equivalent to 700 watts of solar electric capacity.

Established in 1974, the Solar Energy Industries Association is the national trade association of solar energy industry. As the voice of the industry, SEIA works with its 1,000 members to make solar a mainstream and significant energy source by expanding markets, removing market barriers, strengthening the industry and educating the public on the benefits of solar energy.


seia.org

US Powers Up on Solar as Manufacturing and Installation Costs Fall

Germany and Spain might still dwarf the United States in installed solar power capacity, but after a year in which U.S. capacity jumped past 2,000 megawatts and photovoltaic costs continued to fall, there is hope for the growing solar industry.

The Solar Energy Industries Association released its 2009 year in review last week and reported that the U.S. installed 481 MW of photovoltaic and concentrating solar power, enough to power about 80,000 homes. That's up 37 percent from the 351 MW installed in 2008. Revenues in the solar industry grew 36 percent last year, in spite of the recession.

Perhaps the biggest driver of the solar industry was the falling price of photovoltaic modules.

In the middle of 2008, photovoltaic modules cost between $3.50 and $4 per watt. They have since fallen into the range of $1.85 to $2.25 per watt.

Once installation expenses are included, total project costs in 2009 averaged $7.92 per watt, with small residential systems — on the order of about 2 kilowatts — slightly higher at $8 to $10 per watt. That still may not be the price floor.

“Some of the price reductions we’ve seen so far in modules have not yet been fully reflected in installed project costs,” said Ryan Wiser, a renewable energy policy expert at Lawrence Berkeley National Laboratory.

“People are working down inventories, it takes a while for projects to go from the contracting phase to the constructing and operational phase, so I think we will continue to see some reductions in installed costs as the lower module prices begin to work their way through the value chain.”

Solar cell makers are also competing to develop technology that can drop those costs even further, with a goal of under $1 a watt.

Overall, prices have fallen an average of 3.6 percent each year since 1998, when the average installed costs were $10.80 per watt, according to a report co-authored by Wiser.

“That price decline was halted for a few years; in the 2004 through 2008 time frame, prices were largely flat, and even in some markets rising a little bit, largely because demand for solar modules outstripped supply,” Wiser said. There was concern that prices had hit the floor for photovoltaic installations, but then the recession sent demand for PV modules plummeting.

“Over the last year and a half or two years, we’ve found that, yes, prices can certainly go lower, and they have."

Policy-Driven Industry

At the same time, state- and federal-level policies have added incentives and requirements that are pushing both individuals and utilities toward increasing solar’s share of the electricity market.

“Where the installation costs are coming down are in those states that have the most well-funded incentive programs for solar,” said Charlie Kubert, a project director with the Clean Energy States Alliance.

In general, two states have stayed far out in front of the pack and accounted for as much as 90 percent of all the state-level funding for solar power: California and New Jersey.

Last year was no exception: California led the way with 220 MW installed and New Jersey followed with 57 MW. In terms of total capacity, California has almost 10 times as much as No. 2 New Jersey, 1,102 MW versus 128 MW. Other states that have reasonably strong incentives for solar power include Nevada, Arizona and Colorado in the West, and New York, Connecticut and Massachusetts in the Northeast. “Other than that it’s pretty much a black hole,” Kubert said.

Policy will undoubtedly continue to drive the solar market. The SEIA reports that 6,470 MW of photovoltaic projects are currently in development, and many will try to begin construction in 2010 in order to claim a chunk of the Treasury Grant Program set to expire at the end of the year. As of earlier this year, $81 million had been doled out to solar projects through that program, for 182 projects in 30 states.

International Outlook

The global demand side of the solar manufacturing equation may also soon shift as a result of policy in solar leader Germany. The government is planning on cutting its two-decade-old feed-in tariff policy by 16 percent this summer; the policy allows individuals and businesses with solar panels to earn money on the excess electricity they generate.

“The German PV market represents a very sizable fraction of the global market,” Wiser said. “So if the German market is expected to slow or accelerate, this has significant worldwide implications for solar manufacturers and suppliers.”

Germany installed 3,800 MW of capacity in 2009, bringing its leading total almost to 10,000 MW; Spain is second with 3,595 MW installed capacity.

U.S. Outlook