Solar Power Boom Continues in Europe
By Andres Cala / Apr. 16, 2008
Source: The Energy Tribune
http://www.energytribune.com/articles.cfm?aid=859
The recent growth of photovoltaic energy in countries like Spain and Germany is triggering a reassessment of incentives in Europe to foster a cost-effective, consumer-friendly approach to solar power. Europe already has about 3,000 megawatts of P.V. capacity in place. And according to the European Photovoltaic Industry Association (E.P.I.A.), that number is expected to triple to 11,000 MW by 2012. Photovoltaic power accounts for less than 1 percent of Europe’s electricity needs, and even under best-case scenarios, that share will change little in the future.
Germany, the world’s biggest P.V. producer, is Europe’s dominant player, with about 85 percent of the block’s installed capacity – almost entirely as grid-linked installations that use silicon-based panels to convert the sun’s rays into electricity. But Spain has seen a 10-fold increase in installed capacity in the last two years (593 MW in 2007, up from 59 MW in 2005), mostly as utility-type solar farm projects. This has prompted Spain’s P.V. industry and the government to divert incentives to smaller, more cost-effective rooftop installation with maximum installed capacity of 10 MW, which mirrors the German model.
Spain’s experience and new strategy is also driving Europe’s P.V. industry reassessment, especially in countries like France, Greece, and Italy, said Oliver Schaefer, policy director of the European Renewable Energy Council. “There is a natural balance coming in. Rooftop installations are to guard more players, to create competition, to make people aware, and to decentralize the system. But there will still be more growth in big installations, especially in newcomer countries,” Schaefer said.
Solar power advocates say that it is attractive on a number of fronts. It helps cut fossil fuel use, diversifies the energy mix, helps meet E.U.-mandated renewable energy targets, and has solid support from the public. And even though P.V. energy in Europe is still twice as expensive to produce as power from traditional utilities, the E.P.I.A. says that by 2015, costs will be competitive in southern Europe, and by 2025 in northern and eastern Europe, with the mass application of new technology.