Strategy challenges of Solar Energy Players-5

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This study looks at one of the emerging energy alternatives, solar energy.The gap between demand and supply of energy is huge, specially in developing countries like china and India.Most part of …

This study looks at one of the emerging energy alternatives, solar energy.The gap between demand and supply of energy is huge, specially in developing countries like china and India.Most part of Europe is dependent on Russian gas for its winter supply of energy. Solar energy is one of the alternatives for energy in these countries, as fuel ( sunlight) is free and non polluting.
Here the focus is on three countries Germany, USA and India. The choice is based on the emergence of the different needs of these countries, which are in different stages of development of solar energy. This makes an interesting observance.

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  • 1. Appendix
Government
A
 Germany
incentives
and
feed‐in
tariffs

 
 Source:
BSW‐Solar
2008
(www.solarwirtschaft.com)
 Table
2
 Germany‐Feed‐in
Tariffs
for
Selected
Power
Generation

 Source
 2002
 2003
 2004
 Hydro
(up
to
500
kW)
 7.67
 7.67
 7.67
 Hydro
(500
kW‐5
MW)
 6.65
 6.65
 6.65
 Landfill
gas
(up
to
500kW)
 7.67
 7.67
 7.67
 Landfill
gas
(500
kW‐5
MW)
 6.65
 6.65
 6.65
 Biomass
(up
to
500
kW)
 10.13
 10.03
 9.93
 Biomass
(500
kW‐5
MW)
 9.11
 9.02
 8.93
 Biomass
(5
MW‐20
MW)
 8.60
 8.52
 8.43
 Geothermal
(up
to
20
MW)
 8.95
 8.95
 8.95
 Wind
(onshore
or
offshore)
 8.96
 8.83
 8.70
 30
  • 2. Solar
PV
(5
MW)
 48.09
 45.68
 43.40
 Appendix
Government
B
 Major
market
influences
country
wise

 Austria In 2000 a Solar Campaign started comparable to the 'Solar na klar- campaign in Germany. Based on the German experience, a further growth and development of the market is expected. Furthermore, the supply side of the market is becoming increasingly professional. Belgium Since 1999, the regional and Federal governments and the utility sector have developed a number of positive initiatives. Ambitious goals are set and a number of tools to accomplish these goals are given (more or less in line with the ASTIG/DSMT-recommendations). Denmark The Danish market has been stagnating for some years - mainly due to a doubtful approach of utility suppliers - after a successful period in the mid- nineties. New positive political initiatives are under development leading to a possible new impulse through solar-friendly regulations and stimulants. The supply has developed strongly, in particular specializing in large solar thermal plants. Finland The market is expected to increase gradually due to expected increase in district heating applications. France Positive effects are expected as a result of strong new incentive programs and through more 'open market policy' in the coming years. Further market 'increase is expected in combination with favourable climate conditions and stimulants through implementation of ASTIG/ DSMT recommendation Germany There are strong indications that the present market growth figures will continue. Both the political as well as the strong industrial environment ( almost completely incorporated in the traditional heating industry ) are expected to maintain a stable condition for further growth. The high public awareness triggered by the 'Solar na klar!' campaign and positive job creation effects are in them- selves positive arguments and a stimulated political motive. Greece A new National campaign is expected as a result of (re)newed commitment of the government with regard to stimulate the solar market. Publicity effects in conjunction with the upcoming Olympic- games in favour of a further solar market development. Furthermore stimulation is focussed on new application areas like cooling and partial obligation for commercial buildings. Italy The Italian market continues to show strong development in the North. It is expected that this development will gradually move to more Southern Regions already in 2001/2002. There remains uncertainty on the development of incentive programmes. The Strong political commitments for renewables in conjunction with various Netherlands incentive programs and national solar campaign (starting 2001/2002) will be the basis for further market growth. Like in Germany the supply-side is strongly 31
  • 3. integrated in the existing heating industry. Portugal There remains a political uncertainty on the introduction of incentives programs. In more general terms incentive programs are expected to be linked to Southern European initiatives. Spain Growth finally started in 1999 - especially very successful in Andalucia. Incentive programs are developed further, including legislation and obligatory measures (Barcelona and others). Supply side and infrastructure is still to be developed (an open and harmonized market will generate extra stimulants) therefor the growth rate is tempered - but Spain is expected to be one of the fast developing markets in EU. Sweden Market mainly focusing on large projects, incentive programs are considered and slowly started. Switzerland Unfortunately the 'Campaign for Renewable Energy' in 09.2000 failed but in 2002 a new initiative to facilitate/stimulate solar with positive results is expected. UK Still only very few concrete renewable initiatives (for heating) are considered. In general energy efficiency and renewables are starting to come on the political agenda. Incentives,
which
stimulate
solar
thermal
systems
in
11
European
countries
 Country Fiscal Measure Investment Regulation Organizational Others Subsidy Measure Austria - Increased At regional, - Self- - Favourable investment energy construction financing, allowance company groups (project and local - Free or cheap financing, level energy consult favourable - Specific loans) financing schemes Germany - Eco-bonus for At national, - Campaign - Favourable sustainable building regional, - Specific loans - Increased energy financing - investment company schemes Solarthermie allowance (eastern and local 2000 states) level The - Favourable At national, - Energy - Campaign - Project depreciation regional, performance - Long term subsidies Netherlands - Tax deduction energy in building agreement - Solar city - Green funds companies regulation - Specific award - Energy tax and local financial level - Exemption schemes 32
  • 4. from - Energy building saving fund permit Switzerland - Tax At national, - Self- - Energy exemption/reduction regional construction 2000 and local initiative - Solar level - Central award information point Denmark - Energy tax At national - Campaign - Solar - C02 tax level - Danish Plan of Energy Plan Special Action for Solar of Action regulation Energy 1998-2000 in case - Energy 21 water heater is replaced - Increased At national, - Agreement - Promotion and - Subsidy for investment regional, in principle information bottom-up Belgium allowance energy on campaign of initiatives company exemption Flemish - Tax exemption and local from authorities (from advance levy level building on immovables) permit France - Tax reduction At national - Reduced VAT level and regional level Spain At regional - Obligation - Favourable level in Barcelona financing Portugal - Tax deduction At national - Favourable - Reduced VAT level financing, - Favourable (project depreciation subsidy, favourable loans) Sweden - Energy tax At national - RD&D - CO2 tax and program regional level United At local - Solar Clubs Kingdom level project 33
  • 5. Appendix
Government
C







 American
Solar
Incentives
 

American
incentive
programs
are
increasing.

Recent
introduction
of
10
million
Solar
roofs

by
 2018,
introduced
by
Mr.
Sanders

and
California's
Million
Solar
Roofs
initiative
(2005).
Recently
a
 ban
using
land
for
solar
power
generation
was
taken
back
within
two
days
due
to
massive
 opposition,
which
indicates
public
involvement
and
support
for
solar
programs
in
USA
,
specially
 in
face
of
rising
oil
costs.
 

 
 Corporate
Depreciation:
 Modified
Accelerated
Cost‐Recovery
System
(MACRS)
 Corporate
Exemption:
 Residential
Energy
Conservation
Subsidy
Exclusion
 (Corporate)
 Corporate
Tax
Credit:
 Renewable
Electricity
Production
Tax
Credit

 Solar
and
Geothermal
Business
Energy
Tax
Credit

 Federal
Grant
Program:
 Renewable
Energy
Systems
and
Energy
Efficiency
 Improvements
Program

 Tribal
Energy
Program
Grant

 Value‐Added
Producer
Grant
Program

 Federal
Loan
Program
 Energy
Efficient
Mortgage
(EEM)

 Energy
Star
Financing
and
Mortgages

 Tax‐exempt
Financing
for
Green
Buildings,
Renewable
 Energy
&
Brownfield
Redevelopment

 Personal
Exemption:
 Residential
Energy
Conservation
Subsidy
Exclusion
 (Personal)
 Production
Incentive:
 Conservation
Security
Program
(CSP)
Production
 Incentive

 Renewable
Energy
Production
Incentive
(REPI)

 Green
Power
Purchasing/Aggregation:
 Federal
Government
‐
Green
Power
Purchasing
Goal
 Alternative
Fuel
Vehicle
Incentives
and
 U.S.
Department
of
Energy's
Clean
Cities
Program
 Policies:
 Source:

www.dsireusa.org
 
 34
  • 6. 





















































Appendix
Government
D
















































 
 















































India
Solar
Program
and
NAPCC
 
 India’s
National
Action
Plan
on
Climate
Change
(NAPCC)
sets
out
eight
focal
points
for
the
 government’s
sustainable
development
strategy
through
2017.
The
NAPCC
is
likely
to
become
a
 significant
driver
of
new
investment
opportunities
in
the
country’s
renewable
energy
portfolio,
 and
in
solar
generation
in
particular.
 As
the
world’s
second
most
populous
country
and
second
largest
growing
economy,
India
has
 unique
challenges
in
developing
an
energy
supply
adequate
to
meet
the
country’s
development
 needs,
including
providing
electricity
to
the
44%
of
its
population
without
grid
access.
 Solar
power
constitutes
roughly
2
MW
of
the
total
approximate
12,400
MW
of
India’s
grid‐ interactive
renewable
power,
sourced
by
a
total
of
33
grid‐interactive
solar
photovoltaic
plants
 installed
with
financial
assistance
from
the
environment
ministry.
Decentralized
solar
energy
 systems
compose
the
larger
share
of
India’s
solar
power
and
consist
of
120
MW
of
photovoltaic
 systems,
a
collector
area
of
about
2.30
million
square
meters
of
solar
water
heating
systems
and
 620,000
solar
cookers,
used
for
diverse
applications
including
lighting,
telecommunication,
small
 power
requirements,
battery
charging,
water
heating,
and
cooking.
 Existing
incentives
for
renewable
energy
deployment
include
a
system
of
renewable
purchase
 obligations
(RPOs)
(similar
to
renewable
portfolio
standards
(RPS)
in
the
U.S.),
and
various
 funding
for
rural,
urban,
and
industrial
uses
of
renewable
electricity.
 The
NAPCC
seeks
to
consolidate
India’s
activities
on
renewable
energy
and
climate,
through
 improved
research
and
development
on
climate
technologies
and
through
prioritizing
a
 substantial
increase
in
solar
energy
relative
to
the
total
energy
mix.
The
NAPCC
launches
the
 National
Solar
Mission
(NSM),
which
must
present
a
comprehensive
planning
document
to
the
 Prime
Minister’s
Council
on
Climate
Change
by
December
2008,
including
strategies
for
 delivering:
 • Sufficient
solar
energy
in
“urban
areas,
industries,
and
commercial
establishments”
to
 meet
the
targets
defined
in
the
NAPCC;

 • Public‐private
partnerships
for
rural
solar
thermal
application
development;

 • Local
solar
photovoltaic
production
of
1000MW/year
by
2017;
and

 • Concentrating
solar
power
production
of
1000MW/year
by
2017;

 The
NAPCC
additionally
proposes
a
dynamic
minimum
renewable
purchase
standard,
beginning
 at
5%
of
the
total
grid
purchase
starting
2009‐2010,
increasing
by
1%
each
year
for
10
years,
 along
with
verification
mechanisms
and
tradable
certificates
for
renewable‐based
power
in
 excess
of
the
national
standard,
tradable
among
State
Electricity

 35
  • 7. http://climateintel.com/2008/07/22/solar‐energy‐in‐india‐the‐national‐action‐plan/ 36