A Note on The World Solar Energy Industry

Abstract:

The growing world population and heightened economic activity has resulted in increased consumption of power. Fossil fuels form a major source for power generation. But these resources are limited in nature and are a major contributing factor the problem of global warming and climate change. Hence, there has been a rising emphasis on the development of renewable energy sources in order to decrease dependence on fossil fuels, reduce contamination of air and water resulting from combustion of fossil fuels, and attain sustainability in power generation. Renewable energy sources such as solar power are available in abundance, and can be generated using solar cells or photovoltaic (PV) cells.

Solar energy is expected to emerge as the world's fastest growing and most profitable energy industry globally. The major solar cell manufacturers in the world are located in Europe and Japan. As global solar cell producers are expanding their capacity, silicon manufacturers are also increasing their production to match the rise in demand. This has resulted in increasing investment in the solar energy sector.

Solar energy can provide a decentralized source of power, especially for developing countries such as India and China, where a significant part of the total population lives in remote areas and is deprived of power. Grid connected PV technology has shown strong growth in the recent years. With regard to the regulatory environment, several countries have implemented a number of regulations such as feed-in tariff and renewable portfolio standards to promote power consumption from renewable sources. Subsidies and other incentives are also being offered to promote investment in renewable energy systems. Emission reduction targets specified in the Kyoto Protocol are also propelling countries across the world to invest in renewable energy and reduce their emissions.

Major solar energy generating nations such as Germany, Japan and the US have implemented a number of programs to encourage the installation of solar power systems. Solar power will continue to grow supported by favorable regulations till it becomes cost competitive with conventional power.

But solar cells are produced from silicon, and the process of producing silicon is a complex one. This increases the cost of solar cells. Hence global solar cell producers are searching for alternative technologies to produce low cost solar cells. The performance efficiency and payback period of solar cells are also among the major factors to be addressed by solar cell manufacturers.

Keywords:

Solar Energy World, Europe, Regulatory Environment, Photovoltaic (PV) Cell Production, Non-conventional Energy Sources, Kyoto Protocol, Grid connected PV technology, Japan, California Solar Initiative, Fossil Fuel , Environment Management Pollution, Mitsubishi Corporation, Feed-in Tariff, Sharp Corporation, Q-Cells AG, BP Solar

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