IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i10p6422-6439.html
   My bibliography  Save this article

Shedding light on solar technologies'A techno-economic assessment and its policy implications

Author

Listed:
  • Peters, Michael
  • Schmidt, Tobias S.
  • Wiederkehr, David
  • Schneider, Malte

Abstract

Solar power technologies will have to become a major pillar in the world's future energy system to combat climate change and resource depletion. However, it is unclear which solar technology is and will prove most viable. Therefore, a comprehensive comparative assessment of solar technologies along the key quantitative and qualitative competitiveness criteria is needed. Based on a literature review and detailed techno-economic modeling for 2010 and 2020 in five locations, we provide such an assessment for the three currently leading large-scale solar technologies. We show that today these technologies cannot yet compete with conventional forms of power generation but approach competitiveness around 2020 in favorable locations. Furthermore, from a global perspective we find that none of the solar technologies emerges as a clear winner and that cost of storing energy differs by technology and can change the order of competitiveness in some instances. Importantly, the competitiveness of the different technologies varies considerably across locations due to differences in, e.g., solar resource and discount rates. Based on this analysis, we discuss policy implications with regard to fostering the diffusion of solar technologies while increasing the efficiency of policy support through an adequate geographical allocation of solar technologies.

Suggested Citation

  • Peters, Michael & Schmidt, Tobias S. & Wiederkehr, David & Schneider, Malte, 2011. "Shedding light on solar technologies'A techno-economic assessment and its policy implications," Energy Policy, Elsevier, vol. 39(10), pages 6422-6439, October.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6422-6439
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511005775
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Izquierdo, Salvador & Montañés, Carlos & Dopazo, César & Fueyo, Norberto, 2010. "Analysis of CSP plants for the definition of energy policies: The influence on electricity cost of solar multiples, capacity factors and energy storage," Energy Policy, Elsevier, vol. 38(10), pages 6215-6221, October.
    2. Fthenakis, Vasilis, 2009. "Sustainability of photovoltaics: The case for thin-film solar cells," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2746-2750, December.
    3. Fthenakis, Vasilis & Mason, James E. & Zweibel, Ken, 2009. "The technical, geographical, and economic feasibility for solar energy to supply the energy needs of the US," Energy Policy, Elsevier, vol. 37(2), pages 387-399, February.
    4. Neij, Lena, 2008. "Cost development of future technologies for power generation--A study based on experience curves and complementary bottom-up assessments," Energy Policy, Elsevier, vol. 36(6), pages 2200-2211, June.
    5. Rubin, Edward S. & Yeh, Sonia & Antes, Matt & Berkenpas, Michael & Davison, John, 2007. "Use of experience curves to estimate the future cost of power plants with CO2 capture," Institute of Transportation Studies, Working Paper Series qt46x6h0n0, Institute of Transportation Studies, UC Davis.
    6. Kevin Ummel & David Wheeler, 2008. "Desert Power: The Economics of Solar Thermal Electricity for Europe, North Africa, and the Middle East," Working Papers 156, Center for Global Development.
    7. Zarza, Eduardo & Valenzuela, Loreto & León, Javier & Hennecke, Klaus & Eck, Markus & Weyers, H.-Dieter & Eickhoff, Martin, 2004. "Direct steam generation in parabolic troughs: Final results and conclusions of the DISS project," Energy, Elsevier, vol. 29(5), pages 635-644.
    8. Isabel Galiana & Christopher Green, 2009. "Let the global technology race begin," Nature, Nature, vol. 462(7273), pages 570-571, December.
    9. Salomons, Roelof & Grootveld, Henk, 2003. "The equity risk premium: emerging vs. developed markets," Emerging Markets Review, Elsevier, vol. 4(2), pages 121-144, June.
    10. Nemet, Gregory F., 2006. "Beyond the learning curve: factors influencing cost reductions in photovoltaics," Energy Policy, Elsevier, vol. 34(17), pages 3218-3232, November.
    11. Bagnall, Darren M. & Boreland, Matt, 2008. "Photovoltaic technologies," Energy Policy, Elsevier, vol. 36(12), pages 4390-4396, December.
    12. Purohit, Ishan & Purohit, Pallav, 2010. "Techno-economic evaluation of concentrating solar power generation in India," Energy Policy, Elsevier, vol. 38(6), pages 3015-3029, June.
    13. Trieb, Franz & Müller-Steinhagen, Hans & Kern, Jürgen, 2011. "Financing concentrating solar power in the Middle East and North Africa--Subsidy or investment?," Energy Policy, Elsevier, vol. 39(1), pages 307-317, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martín, Helena & de la Hoz, Jordi & Velasco, Guillermo & Castilla, Miguel & García de Vicuña, José Luís, 2015. "Promotion of concentrating solar thermal power (CSP) in Spain: Performance analysis of the period 1998–2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1052-1068.
    2. Hernández-Moro, J. & Martínez-Duart, J.M., 2013. "Analytical model for solar PV and CSP electricity costs: Present LCOE values and their future evolution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 119-132.
    3. Pietzcker, Robert Carl & Stetter, Daniel & Manger, Susanne & Luderer, Gunnar, 2014. "Using the sun to decarbonize the power sector: The economic potential of photovoltaics and concentrating solar power," Applied Energy, Elsevier, vol. 135(C), pages 704-720.
    4. Rubin, Edward S. & Azevedo, Inês M.L. & Jaramillo, Paulina & Yeh, Sonia, 2015. "A review of learning rates for electricity supply technologies," Energy Policy, Elsevier, vol. 86(C), pages 198-218.
    5. Steinbuks, Jevgenijs & Satija, Gaurav & Zhao, Fu, 2017. "Sustainability of solar electricity: The role of endogenous resource substitution and cross-sectoral responses," Resource and Energy Economics, Elsevier, vol. 49(C), pages 218-232.
    6. Nicodemus, Julia Haltiwanger, 2018. "Technological learning and the future of solar H2: A component learning comparison of solar thermochemical cycles and electrolysis with solar PV," Energy Policy, Elsevier, vol. 120(C), pages 100-109.
    7. Hernández-Moro, J. & Martínez-Duart, J.M., 2012. "CSP electricity cost evolution and grid parities based on the IEA roadmaps," Energy Policy, Elsevier, vol. 41(C), pages 184-192.
    8. Heuberger, Clara F. & Rubin, Edward S. & Staffell, Iain & Shah, Nilay & Mac Dowell, Niall, 2017. "Power capacity expansion planning considering endogenous technology cost learning," Applied Energy, Elsevier, vol. 204(C), pages 831-845.
    9. Kevin Ummel, 2010. "Concentrating Solar Power in China and India: A Spatial Analysis of Technical Potential and the Cost of Deployment," Working Papers id:2807, eSocialSciences.
    10. Nemet, Gregory F., 2009. "Interim monitoring of cost dynamics for publicly supported energy technologies," Energy Policy, Elsevier, vol. 37(3), pages 825-835, March.
    11. Ummadisingu, Amita & Soni, M.S., 2011. "Concentrating solar power – Technology, potential and policy in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 5169-5175.
    12. Reinhard Haas & Marlene Sayer & Amela Ajanovic & Hans Auer, 2023. "Technological learning: Lessons learned on energy technologies," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 12(2), March.
    13. Komendantova, Nadejda & Patt, Anthony & Williges, Keith, 2011. "Solar power investment in North Africa: Reducing perceived risks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4829-4835.
    14. Steinbuks, Jevgenijs & Satija, Gaurav & Zhao, Fu, 2015. "Sustainability of solar electricity : the role of endogenous resource substitution and market mediated responses," Policy Research Working Paper Series 7178, The World Bank.
    15. Wu, X.D. & Yang, Q. & Chen, G.Q. & Hayat, T. & Alsaedi, A., 2016. "Progress and prospect of CCS in China: Using learning curve to assess the cost-viability of a 2×600MW retrofitted oxyfuel power plant as a case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1274-1285.
    16. Bazmi, Aqeel Ahmed & Zahedi, Gholamreza, 2011. "Sustainable energy systems: Role of optimization modeling techniques in power generation and supply—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3480-3500.
    17. Sener, Can & Fthenakis, Vasilis, 2014. "Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 854-868.
    18. Usaola, Julio, 2012. "Participation of CSP plants in the reserve markets: A new challenge for regulators," Energy Policy, Elsevier, vol. 49(C), pages 562-571.
    19. Bolinger, Mark & Wiser, Ryan, 2009. "Wind power price trends in the United States: Struggling to remain competitive in the face of strong growth," Energy Policy, Elsevier, vol. 37(3), pages 1061-1071, March.
    20. Lovering, Jessica R. & Yip, Arthur & Nordhaus, Ted, 2016. "Historical construction costs of global nuclear power reactors," Energy Policy, Elsevier, vol. 91(C), pages 371-382.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6422-6439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.