1) Building on the experience of European markets, PV market growth and policy recommendations were discussed to sustainably develop PV markets in the long term.
2) Key recommendations included implementing sustainable support mechanisms like feed-in tariffs, streamlining administrative procedures, and guaranteeing efficient grid connection processes.
3) PV generation costs are decreasing faster than expected, and grid parity could be reached in some market segments before 2020 if policies continue to encourage PV development and prices continue to decline approximately 50% by the end of the decade.
Electricity Market Day 2015 - Colas Chabanne, ENTSO-E WG Market Design and ...Fingrid Oyj
ENTSO-E is an organization of 41 transmission system operators from 34 European countries. It has no official position on capacity mechanisms but discusses various options for ensuring long-term generation adequacy. Key options discussed include capacity obligations where consumers/suppliers contract capacity, capacity auctions where total needed capacity is procured through auction, and reliability options resembling call options. Several European countries have implemented forms of these. Cross-border participation in capacity mechanisms is challenging but important to address given mechanisms in several countries; transmission system operators will play a key role through cooperation.
Course on Regulation and Sustainable Energy in Developing Countries - Session 1Leonardo ENERGY
This session is devoted to the design of schemes for the large-scale dissemination of renewable energy technologies in developing countries. Market-based mechanisms overcome partly the limits of donor aid-projects. They build on public-private partnerships where a network of local entrepreneurs contributes to the maintenance of systems.
The example of solar home systems will be explained. Even if there are in many instances in parity with fossil fuels, small photovoltaic systems remain unaffordable for the majority of rural inhabitants without proper financial support mechanisms. But in the most active countries, the number of systems disseminated is now in the range of several ten thousands to several hundred thousands systems, thanks to the implementation of rural energy services companies.
Recent technological innovation could contribute to the acceleration of the diffusion of solar photovoltaic. The innovation introduced by the massive diffusion of mobile phones in developing countries tends simultaneously to create new markets for small photovoltaic systems and could improve the conditions for the diffusion of these systems by facilitating the daily management of these systems by rural energy services companies. Furthermore, Light Emitting Diodes (LED) technology opens new perspectives of self-sustained market diffusion.
The implementation of small rural energy services companies can also help to disseminate a wider range of products: LPG, cookstoves, biodigesters... New practices from rural energy providers tend to target more precisely the demand of end-users by combining the offer of photovoltaic systems with a variety of technologies to satisfy other energy needs than basic lighting in rural areas.
Concrete case studies from the dissemination of different renewable energy technologies in developing countries will be presented, notably in Zambia, South Africa, Bangladesh, China...
It will conclude with the institutional and regulatory framework that needs to be implemented to help rural energy services companies to thrive even in the most remote areas of developing countries.
The document summarizes the deregulation and privatization of the UK electricity market in the 1990s. It discusses how the industry was separated into generation, transmission, distribution, and supply segments. It also describes how the electricity pool pricing mechanism works, with generators submitting hourly bids and the market clearing price being set where supply meets demand. There is discussion of whether prices are too high due to potential market power of generators and price volatility. The Competition Commission was tasked with reviewing the market and determining if generators refusing a "Market Abuse Licence Condition" was against the public interest.
This document discusses the deregulation and reregulation of the British retail energy market. It provides background on the privatization and liberalization of the gas and electricity markets in the 1980s and 1990s, leading to the formation of the "Big Six" dominant energy companies. It then analyzes trends of rising prices, lack of switching by many consumers, and recent political interventions to mandate cheaper tariffs and limit complex tariff options, in an attempt to make the market fairer for consumers. The document concludes by discussing the tensions between promoting competition through switching versus protecting consumers through enforced tariff changes.
This document presents a vision for integrated European electricity markets in 2030. It discusses the development of electricity markets from national to regional models. As transmission networks expand, markets move from zonal pricing models to increasingly complex nodal pricing models to account for transmission constraints. The document examines existing market models in Europe, including the Nordic countries, Central West Europe, PJM, Texas, Australia and New Zealand; outlining their key features such as pricing mechanisms, generation sources, and consumption levels. The vision is for an efficient European market that ensures secure, affordable and sustainable electricity supply.
Electricity Markets Regulation - Lesson 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
This document discusses cost-reflective distribution tariffs. It covers the following key points in 3 sentences:
The document discusses how distribution tariffs should cover main capital and operational costs allocated across different grid levels, and how the tariff structure should reflect cost drivers to promote efficiency. It also addresses how changes in power generation from liberalization and renewable energy integration impact cost allocation and the need for tariffs to incentivize flexibility. The conclusion is that tariff structures need to balance reflecting real costs while also incentivizing customers in a way that maintains security of supply.
The main focus of this course is on the introduction, characterisation and analysis of renewable energy support schemes and instruments.
A variety of promotion strategies for renewable energy sources in the electricity sector (RES-E) have been implemented in EU Member States. The main ones are price-based feed-in tariffs or premiums and quantity-based quota systems using tradable green certificates. Much work has been devoted to the motivation for and evaluation of these instruments, mostly in the form of country/local case studies, model simulations, or econometric modeling. The main drivers behind these policies are addressing the externalities of the environmentally harmful emissions of electricity generation and stimulating technological innovation. The most frequently used evaluation criteria of policies are their effectiveness and economic efficiency.
Electricity Market Day 2015 - Colas Chabanne, ENTSO-E WG Market Design and ...Fingrid Oyj
ENTSO-E is an organization of 41 transmission system operators from 34 European countries. It has no official position on capacity mechanisms but discusses various options for ensuring long-term generation adequacy. Key options discussed include capacity obligations where consumers/suppliers contract capacity, capacity auctions where total needed capacity is procured through auction, and reliability options resembling call options. Several European countries have implemented forms of these. Cross-border participation in capacity mechanisms is challenging but important to address given mechanisms in several countries; transmission system operators will play a key role through cooperation.
Course on Regulation and Sustainable Energy in Developing Countries - Session 1Leonardo ENERGY
This session is devoted to the design of schemes for the large-scale dissemination of renewable energy technologies in developing countries. Market-based mechanisms overcome partly the limits of donor aid-projects. They build on public-private partnerships where a network of local entrepreneurs contributes to the maintenance of systems.
The example of solar home systems will be explained. Even if there are in many instances in parity with fossil fuels, small photovoltaic systems remain unaffordable for the majority of rural inhabitants without proper financial support mechanisms. But in the most active countries, the number of systems disseminated is now in the range of several ten thousands to several hundred thousands systems, thanks to the implementation of rural energy services companies.
Recent technological innovation could contribute to the acceleration of the diffusion of solar photovoltaic. The innovation introduced by the massive diffusion of mobile phones in developing countries tends simultaneously to create new markets for small photovoltaic systems and could improve the conditions for the diffusion of these systems by facilitating the daily management of these systems by rural energy services companies. Furthermore, Light Emitting Diodes (LED) technology opens new perspectives of self-sustained market diffusion.
The implementation of small rural energy services companies can also help to disseminate a wider range of products: LPG, cookstoves, biodigesters... New practices from rural energy providers tend to target more precisely the demand of end-users by combining the offer of photovoltaic systems with a variety of technologies to satisfy other energy needs than basic lighting in rural areas.
Concrete case studies from the dissemination of different renewable energy technologies in developing countries will be presented, notably in Zambia, South Africa, Bangladesh, China...
It will conclude with the institutional and regulatory framework that needs to be implemented to help rural energy services companies to thrive even in the most remote areas of developing countries.
The document summarizes the deregulation and privatization of the UK electricity market in the 1990s. It discusses how the industry was separated into generation, transmission, distribution, and supply segments. It also describes how the electricity pool pricing mechanism works, with generators submitting hourly bids and the market clearing price being set where supply meets demand. There is discussion of whether prices are too high due to potential market power of generators and price volatility. The Competition Commission was tasked with reviewing the market and determining if generators refusing a "Market Abuse Licence Condition" was against the public interest.
This document discusses the deregulation and reregulation of the British retail energy market. It provides background on the privatization and liberalization of the gas and electricity markets in the 1980s and 1990s, leading to the formation of the "Big Six" dominant energy companies. It then analyzes trends of rising prices, lack of switching by many consumers, and recent political interventions to mandate cheaper tariffs and limit complex tariff options, in an attempt to make the market fairer for consumers. The document concludes by discussing the tensions between promoting competition through switching versus protecting consumers through enforced tariff changes.
This document presents a vision for integrated European electricity markets in 2030. It discusses the development of electricity markets from national to regional models. As transmission networks expand, markets move from zonal pricing models to increasingly complex nodal pricing models to account for transmission constraints. The document examines existing market models in Europe, including the Nordic countries, Central West Europe, PJM, Texas, Australia and New Zealand; outlining their key features such as pricing mechanisms, generation sources, and consumption levels. The vision is for an efficient European market that ensures secure, affordable and sustainable electricity supply.
Electricity Markets Regulation - Lesson 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
This document discusses cost-reflective distribution tariffs. It covers the following key points in 3 sentences:
The document discusses how distribution tariffs should cover main capital and operational costs allocated across different grid levels, and how the tariff structure should reflect cost drivers to promote efficiency. It also addresses how changes in power generation from liberalization and renewable energy integration impact cost allocation and the need for tariffs to incentivize flexibility. The conclusion is that tariff structures need to balance reflecting real costs while also incentivizing customers in a way that maintains security of supply.
The main focus of this course is on the introduction, characterisation and analysis of renewable energy support schemes and instruments.
A variety of promotion strategies for renewable energy sources in the electricity sector (RES-E) have been implemented in EU Member States. The main ones are price-based feed-in tariffs or premiums and quantity-based quota systems using tradable green certificates. Much work has been devoted to the motivation for and evaluation of these instruments, mostly in the form of country/local case studies, model simulations, or econometric modeling. The main drivers behind these policies are addressing the externalities of the environmentally harmful emissions of electricity generation and stimulating technological innovation. The most frequently used evaluation criteria of policies are their effectiveness and economic efficiency.
Electricity Markets and Principle Market Design ModelsLeonardo ENERGY
Highlights:
* Explains the various market design possibilities.
* Discusses Single Buyer or Electricity Markets with Wholesale Competition.
* Provides a view about Pool versus Bilateral Trading, Intra-day * Trading and Balancing Mechanisms.
* Presents Supplementary Capacity Schemes.
The document discusses challenges facing the European gas market. It notes a widening gap between forecasted gas demand and supply capacity in the EU by the late 2020s if no action is taken. Political challenges include a restrictive regulatory framework that disadvantages gas compared to other energy sources like renewables. The document advocates for a liberalized but not overregulated gas market in Europe that promotes gas and enables infrastructure development to ensure secure supply. It argues gas will remain an important fuel through 2035 and that supporting its role in decarbonization efforts can benefit the future energy mix.
Electricity Market Design at a crossroadFingrid Oyj
Decarbonization of the electricity sector through increasing renewable energy is transforming electricity markets in Europe. This is creating challenges around intermittent generation, reduced dispatchable capacity, and investment risks. National capacity markets intended to address these risks may distort the internal electricity market. There is currently a lack of political commitment around the EU to long-term solutions, and energy markets are at a crossroads between market principles and regulated investments. The future of EU electricity market design will depend on how policies balance emissions reductions, renewables targets, and ensuring timely efficient investment.
EURELECTRIC Views on Demand-Side Participationdavidtrebolle
In our vision of demand-side participation, smart grids will provide the infrastructure that enables decentralised producers, customers/‘prosumers’, suppliers and service providers to meet on an open market place, while giving grid operators more advanced tools to manage their grids.
Training Module on Electricity Market Regulation - SESSION 1 Regulation gen...Leonardo ENERGY
This session explains the main tasks of regulation and addresses three main questions: what is regulated, where is it regulated, and how is it regulated.
In addition, we explain how the communication between regulators and regulated companies is organised, and how the regulatory performance is measured.
* General tasks of regulators: Price, Quality, Market functioning
* Areas of regulation
* Scope of regulation
* Methods of regulation
* Institutional questions
* Consultation and communication
* Regulatory performance : External performance, Internal Performance
This document discusses 4 basic models for opening the power industry to investors:
1. No opening (monopoly model)
2. Opening to "franchised" independent power producers while maintaining a monopoly
3. Opening to generation competition through a single buyer model
4. Opening wholesale markets to generation competition and eligible consumers while retaining a single buyer for retail supply.
The presentation analyzes the characteristics and implications of each model, noting the tradeoffs between reforms, risks transferred to consumers or generators, and the level of centralized planning and incentives for efficiency.
This document summarizes key aspects of the European Union's Clean Energy Package, which aims to reform electricity market design and governance. Some of the major changes introduced include reinforcing competitive energy markets through greater consumer rights and roles for demand response and storage. National regulatory authorities will have enhanced oversight of electricity system operators and markets. The package also establishes principles for dispatching electricity sources, balancing markets, and capacity remuneration mechanisms to ensure resource adequacy. Regional coordination centers will be established to harmonize cross-border electricity trading and system operation.
This document discusses solar feed-in tariffs and renewable portfolio standards in Germany and California. It explains that feed-in tariffs set a fixed price that solar producers are paid for electricity, while renewable portfolio standards set renewable energy production quotas and let market prices be determined. Germany pioneered feed-in tariffs in 1991 and California established a renewable portfolio standard in 2002, requiring 20% renewable energy by 2017. Both policies have effectively increased solar power adoption.
This document discusses options for international auctions of renewable energy in the EU. It analyzes two options: 1) reciprocally opened auctions where countries open their national auctions to installations in other countries, and 2) common auctions where two or more countries hold an auction together. Common auctions require more coordination but are more scalable. The document also presents a case study of a potential common auction between Portugal and Belgium and provides recommendations for the new RES Directive regarding auction design elements and international cooperation.
Electricity Markets Regulation - Lesson 8 - PricingLeonardo ENERGY
Once the revenue requirements are established they should be converted into tariff systems. This session explains the major economic principles of electricity pricing and the general pricing models using average and marginal costs. Moreover the session explores the major pricing models for the electricity activities including: generation, transmission, distribution and retail activities.
* Pricing principles : economic efficiency - cost recovery
* General pricing models : average cost pricing - marginal cost pricing
* Cost allocation issue
* Pricing for different activities in the electricity industry : generation pricing - transmission pricing - distribution pricing - retail supply pricing
Jiri Horak of CEZ discussed the experiences of market liberalisation in Romania and Czech Republic and how the market should accordingly be opened in Bulgaria
Photovoltaic industry witnessing a paradigm shift Aranca
Photovoltaic industry witnessing a paradigm shift Find special reports on industries, latest innovations & technology trends, business analysis, intellectual property & patent industry & other knowledge reports created by Aranca, a global provider of outsourced research & analytics services firm & a trusted research partner for various global clients.
This document discusses electricity prices and markets in West African countries. It notes that electricity consumption in the region exceeded 50 terawatt-hours in 2014, and markets have been undergoing deregulation reforms for over a decade. It raises concerns about high power prices in the region and poses questions about whether prices are fair, what criteria are used to set prices, why citizens feel prices are expensive, and why prices are rising. The document aims to examine these issues and what governments can do to address increasing power costs.
BUILDING ON THE PV EXPERIENCE OF EUROPEAN MARKETSpvsinbloom
PV Market Status in 2010 and prospects for 2011
Market Outlook until 2015
Policy recommendations to sustainably develop a market
PV on the road to competitiveness
Electricity Markets and Principle Market Design ModelsLeonardo ENERGY
Highlights:
* Explains the various market design possibilities.
* Discusses Single Buyer or Electricity Markets with Wholesale Competition.
* Provides a view about Pool versus Bilateral Trading, Intra-day * Trading and Balancing Mechanisms.
* Presents Supplementary Capacity Schemes.
The document discusses challenges facing the European gas market. It notes a widening gap between forecasted gas demand and supply capacity in the EU by the late 2020s if no action is taken. Political challenges include a restrictive regulatory framework that disadvantages gas compared to other energy sources like renewables. The document advocates for a liberalized but not overregulated gas market in Europe that promotes gas and enables infrastructure development to ensure secure supply. It argues gas will remain an important fuel through 2035 and that supporting its role in decarbonization efforts can benefit the future energy mix.
Electricity Market Design at a crossroadFingrid Oyj
Decarbonization of the electricity sector through increasing renewable energy is transforming electricity markets in Europe. This is creating challenges around intermittent generation, reduced dispatchable capacity, and investment risks. National capacity markets intended to address these risks may distort the internal electricity market. There is currently a lack of political commitment around the EU to long-term solutions, and energy markets are at a crossroads between market principles and regulated investments. The future of EU electricity market design will depend on how policies balance emissions reductions, renewables targets, and ensuring timely efficient investment.
EURELECTRIC Views on Demand-Side Participationdavidtrebolle
In our vision of demand-side participation, smart grids will provide the infrastructure that enables decentralised producers, customers/‘prosumers’, suppliers and service providers to meet on an open market place, while giving grid operators more advanced tools to manage their grids.
Training Module on Electricity Market Regulation - SESSION 1 Regulation gen...Leonardo ENERGY
This session explains the main tasks of regulation and addresses three main questions: what is regulated, where is it regulated, and how is it regulated.
In addition, we explain how the communication between regulators and regulated companies is organised, and how the regulatory performance is measured.
* General tasks of regulators: Price, Quality, Market functioning
* Areas of regulation
* Scope of regulation
* Methods of regulation
* Institutional questions
* Consultation and communication
* Regulatory performance : External performance, Internal Performance
This document discusses 4 basic models for opening the power industry to investors:
1. No opening (monopoly model)
2. Opening to "franchised" independent power producers while maintaining a monopoly
3. Opening to generation competition through a single buyer model
4. Opening wholesale markets to generation competition and eligible consumers while retaining a single buyer for retail supply.
The presentation analyzes the characteristics and implications of each model, noting the tradeoffs between reforms, risks transferred to consumers or generators, and the level of centralized planning and incentives for efficiency.
This document summarizes key aspects of the European Union's Clean Energy Package, which aims to reform electricity market design and governance. Some of the major changes introduced include reinforcing competitive energy markets through greater consumer rights and roles for demand response and storage. National regulatory authorities will have enhanced oversight of electricity system operators and markets. The package also establishes principles for dispatching electricity sources, balancing markets, and capacity remuneration mechanisms to ensure resource adequacy. Regional coordination centers will be established to harmonize cross-border electricity trading and system operation.
This document discusses solar feed-in tariffs and renewable portfolio standards in Germany and California. It explains that feed-in tariffs set a fixed price that solar producers are paid for electricity, while renewable portfolio standards set renewable energy production quotas and let market prices be determined. Germany pioneered feed-in tariffs in 1991 and California established a renewable portfolio standard in 2002, requiring 20% renewable energy by 2017. Both policies have effectively increased solar power adoption.
This document discusses options for international auctions of renewable energy in the EU. It analyzes two options: 1) reciprocally opened auctions where countries open their national auctions to installations in other countries, and 2) common auctions where two or more countries hold an auction together. Common auctions require more coordination but are more scalable. The document also presents a case study of a potential common auction between Portugal and Belgium and provides recommendations for the new RES Directive regarding auction design elements and international cooperation.
Electricity Markets Regulation - Lesson 8 - PricingLeonardo ENERGY
Once the revenue requirements are established they should be converted into tariff systems. This session explains the major economic principles of electricity pricing and the general pricing models using average and marginal costs. Moreover the session explores the major pricing models for the electricity activities including: generation, transmission, distribution and retail activities.
* Pricing principles : economic efficiency - cost recovery
* General pricing models : average cost pricing - marginal cost pricing
* Cost allocation issue
* Pricing for different activities in the electricity industry : generation pricing - transmission pricing - distribution pricing - retail supply pricing
Jiri Horak of CEZ discussed the experiences of market liberalisation in Romania and Czech Republic and how the market should accordingly be opened in Bulgaria
Photovoltaic industry witnessing a paradigm shift Aranca
Photovoltaic industry witnessing a paradigm shift Find special reports on industries, latest innovations & technology trends, business analysis, intellectual property & patent industry & other knowledge reports created by Aranca, a global provider of outsourced research & analytics services firm & a trusted research partner for various global clients.
This document discusses electricity prices and markets in West African countries. It notes that electricity consumption in the region exceeded 50 terawatt-hours in 2014, and markets have been undergoing deregulation reforms for over a decade. It raises concerns about high power prices in the region and poses questions about whether prices are fair, what criteria are used to set prices, why citizens feel prices are expensive, and why prices are rising. The document aims to examine these issues and what governments can do to address increasing power costs.
BUILDING ON THE PV EXPERIENCE OF EUROPEAN MARKETSpvsinbloom
PV Market Status in 2010 and prospects for 2011
Market Outlook until 2015
Policy recommendations to sustainably develop a market
PV on the road to competitiveness
Global environmental tendencies and energy sustainabilitypvsinbloom
The document summarizes the global and European renewable energy picture and the EU's 2020 strategy for promoting renewable energy and energy efficiency. It discusses how renewable energy accounted for an estimated 16% of global energy consumption in 2010 and how the EU aims to source 20% of its energy from renewables by 2020. It also outlines the opportunities for promoting the EU 2020 strategy in Central and Eastern European countries through increasing their use of renewable energy and improving energy efficiency, especially in buildings.
The document discusses the BLOOM Project's approach to sustainability and impact. It summarizes that the project indirectly involved over 2,000 European municipalities and directly engaged 67 municipalities in promoting renewable energy to recover marginal lands. It also triggered over 19 MWp of photovoltaic power plants on marginal lands in Europe with the support of project partners. The project aims to sustainably utilize degraded and unused lands rather than sacrifice agricultural or landscape areas.
1) The document discusses constructing photovoltaic power plants (PVE) on brownfield sites, or previously contaminated lands, as a way to remediate environmental hazards while generating renewable energy.
2) Examples are provided of PVEs built on different brownfield sites in Slovakia, including a swampy land, municipal dump, asbestos quarry, uranium pond, and wastewater treatment plant area.
3) Key challenges of building on brownfields include unstable soil conditions and chemical contamination, which require enhanced foundation designs, protective coatings, soil replacement, and monitoring systems to ensure stability and performance of the PVEs.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
09 p vs in bloom budapest september sin miguel montespvsinbloom
The document discusses solar power plants owned by municipalities in Andalusia, Spain. It describes the Innovation and Development Agency of Andalusia (IDEA) which promotes sustainable development projects and renewable energy. It then provides details on several municipal solar plants, listing their locations, installed capacities, total power generation and productivity.
1) Construction of a 1.8 MWp solar power plant in Wierzchosławice, Malopolska, Poland is underway.
2) The investment is being carried out by the company "Energy Wierzchoslawice" and aims to generate renewable energy for the local area.
3) Once completed, the solar power plant is expected to generate annual revenues of 600-800 thousand PLN and pay for itself within 7 years.
Auctions for energy efficiency and the experience of renewablesLeonardo ENERGY
Auctions are an emerging market-based policy instrument to promote energy efficiency that has started to gain traction in the EU and worldwide. This presentation provides an overview and comparison of several energy efficiency auctions and derives conclusions on the effects of design elements based on auction theory and on experiences of renewable energy auctions. We include examples from energy efficiency auctions in Brazil, Canada, Germany, Portugal, Switzerland, Taiwan, UK, and US.
A recording of this presentation can be viewed at:
https://youtu.be/aC0h4cXI9Ug
The document discusses the impact of the Chinese PV industry on silicon markets. It notes that China's PV industry dominates global production, accounting for around 80% of its own domestic consumption. In May 2018, China announced major changes to its solar subsidy policies, which are expected to significantly reduce Chinese PV demand over the next few years. However, long-term global PV market growth is still expected to be strong due to falling costs and improving efficiency. The reduction in Chinese demand may temporarily impact magnesium silicon markets but robust demand from other regions and technology advances could mitigate the effects.
200TWh of Annual Energy Savings in Europe by 2020, part 1MatsBerglind
IT and Demand Response programs can be used to achieve substantial energy savings. How does the future look? This presentation will outline both the potential of these IT enabled programs taken from a range of studies collected globally, as well as map the political and market requirements needed to make them a reality for Europe.
The document discusses whether grid parity for solar photovoltaics is imminent based on learning curves and price trends. It notes that energy technology costs typically reduce 15-20% each time cumulative sales double. For solar to reach grid parity, costs must fall to around $2,857 per kilowatt based on typical electricity prices and annual yields. The document also examines market considerations and growth scenarios from industry groups that see solar contributing 1-9% of European electricity by 2030.
Webinar - Photovoltaic Grid Parity Monitor for residential consumersLeonardo ENERGY
The Photovoltaic Grid Parity Monitor analyses PV competitiveness with retail electricity prices for residential consumers and assesses local regulation for self-consumption of nineteen cities in ten countries (Australia, Brazil, Chile, France, Germany, Italy, Mexico, Spain, UK, USA).
It is based on a rigorous and transparent methodology and has used real and updated data provided by local PV installers, local PV associations and other reliable players from the PV industry. A specific and in-depth analysis of retail electricity rates for each of the 19 cities is included.
Given that PV Grid Parity represents a unique opportunity to develop a local and sustainable power generation technology in a cost-effective way, this Monitor aims at giving benchmark elements and good practice models to foster the development of this technology.
Vito Gamberale: Photovoltaics like PCs and mobile phonesVito Gamberale
The document discusses the evolution of photovoltaics in Italy over the past 5-6 years. It notes that installed photovoltaic power has grown exponentially both globally and nationally. Photovoltaics now accounts for over 35% of renewable energy installed in Italy, exceeding the country's 2020 EU target. This has reduced reliance on traditional energy sources and lowered energy prices. The document argues that photovoltaics are following a similar development path to mobile phones and PCs, enabling decentralized energy generation. As costs continue to decline, grid parity is being reached, which will further increase the number of small domestic installations.
Photovoltaic market and industry trends 2020 IEA PVPSLeonardo ENERGY
Recording at: https://www.youtube.com/watch?v=KnHWR6e_8lw
This webinar will address the key drivers of the PV market and industry in the coming years based on the Trends 2020. Gaëtan Masson, Operating Agent of IEA PVPS Task 1, will look at the past developments and future scenarios, from a global market development point of view to some key price evolution features. From social aspects of PV, collective and decentralised self-consumption policies to floating PV, this webinar will browse the global landscape of PV development.
Izumi Kaizuka, deputy chair of the IEA PVPS Task 1, will present the trends of the PV Industry. The production of polysilicon, ingots, wafers, PV cells and modules have been growing with the growth of the PV market. The gap between manufacturing capacity of PV module and the demand contributed to the recent price reduction thus resulted in lower LCOE of PV power. Across the value chain, the PV upstream sector makes efforts to improve efficiency, output and reliability. Further progress of cost reduction is expected. In the downstream sector, players are also applying various methods to reduce LCOE.
Capacity mechanisms for improving security of supply: quick fixes or thoughtf...Université de Liège (ULg)
This presentation discusses future electricity market designs and, in particular, capacity remuneration mechanisms that are needed for new investments and security of supply.
Carsten Rolle, Executive Director WEC Germany WEC Italia
Slides presentate in occasione del Seminario "The Energy transition in Europe: different pathways, same destination? organizzato da Edison in collaborazione con WEC Italia il 29 maggio 2013 a Roma - TWITTER #NRGstrategy
Philipp Steinberg - La transición energética en Europa y el cambio climáticoFundación Ramón Areces
Entre el 30 de junio y el 2 de julio de 2014 organizamos en la Fundación Ramón Areces (C/ Vitruvio, 5, en Madrid) un curso de verano en colaboración con la Universidad Complutense de Madrid sobre los retos energéticos de Europa ante el cambio climático. En estas jornadas, diferentes expertos analizaron la transición energética en Europa para cumplir las exigencias de los compromisos internacionales en materia de emisiones de CO2.
IEA Technology roadmap solar photovoltaic energy 2014 Andrew Gelston
This document provides a summary and update of the International Energy Agency's 2014 technology roadmap for solar photovoltaic energy. It envisions solar PV providing up to 16% of global electricity by 2050, compared to 11% in the 2010 roadmap. Significant cost reductions have already been achieved, with further reductions possible through targeted research and development. Large-scale integration of variable solar PV will require measures to ensure grid stability and flexibility. Clear and predictable policy support is needed to continue driving down costs and overcoming non-economic barriers to deployment in order to achieve the roadmap's vision.
Welcome to the 21st edition of the international survey report on Trends in Photovoltaic (PV) Applications up to 2015, provided to you by the IEA PVPS Programme.
The “Trends Report” is one of our flagship publications and a worldwide reference regarding the global photovoltaic market development. The unique series of “Trends Reports” has covered the transition of PV technology from its early and expensive niche market developments in the 1990s to the recent large scale global deployment and increased competitiveness. In contrast to 2014, 2015 has seen an impressive growth and acceleration of the global market deployment with about 50,7 GW of additional installed capacity, 26,5% above 2014, of which about 40 GW were installed in IEA PVPS member countries (2014: 34 GW). As in 2014, China, Japan and the USA lead this important growth, accounting for 33 GW of installed capacity in these 3 countries alone. 8 countries have installed more than 1 GW while another 7 countries have markets above 300 MW. The globally installed total PV capacity is estimated at roughly 228 GW at the end of 2015. Although the price reduction for PV systems has continued its trend for a slower decline in 2015, this year (2016) shows evidence of a more rapid cost reduction, in parallel with a trend towards higher overcapacities in the industry. Concerning PV generation costs and more precisely recently contracted power purchase agreements (PPAs), new record values of below 3 USDcents/kWh have been announced, confirming what is achievable today under very good market and solar resource conditions. The other side of the coin is the observation that large parts of the global PV market (78%) are still driven by financial incentives, accompanied by an increasing share of selfconsumption or net-metering (15%) and about 6% of the market coming from competitive tenders.
ETIP SNET: For an innovative and successful European energy transition Leonardo ENERGY
The ETIP Smart Networks for Energy Transition (SNET) role is to guide Research, Development & Innovation (RD&I) to support Europe’s energy transition, more specifically, its mission is to set-out a vision for RD&I for Smart Networks for Energy Transition and engage stakeholders in this vision.
In this webinar the ETIP SNET role and main priorities will be introduced by its chairman Konstantin Staschus. Eric Peirano will present the new 10 year ETIP SNET Research & Innovation Roadmap 2017-2026. The roadmap provides a system view and addresses a scope larger than smart electricity grids by encompassing interactions with the gas and heat networks and focuses on integration of all flexibility solutions into the power system, including energy storage technologies.
Jean-Yves OLLIER, CEO of CRE, the French Regulatory Commission of Energy, explained the differences between regulate and free electricity markets and what are the issues for electricity producers and customers.
Latest trends in the World Traditional & Renewable Heating MarketsBSRIA
The document summarizes key trends in global heating markets, with a focus on Europe. It notes that while gas-fueled boilers are growing in dominance, controls and renewable heating systems are also increasing in importance. Legislation is driving the market toward more efficient condensing products and combined/hybrid heating systems. The European market is shaped by targets for low-energy buildings and decarbonized electricity. Overall, the trends include a rise in system integration and controls to better manage decentralized renewable energy generation.
Business Unusual: Strategic Perspectives on the Utilities Consumer Marketplaceaccenture
A major transformation of utilities market is challenging traditional business and operational models. Accenture analysis of the likely demand disruption scenario points to a significant financial impact on the traditional utility model by 2025. Leading utilities are adapting to the chaining marketplace.
World Bank: SBI Grid Connected Solar Rooftop PV (GRPV) Technical Assistance P...WRI India
An initiative to bolster grid connected rooftop solar deployment in 14 Indian states via policy and regulatory assistance, capacity building, and outreach efforts like training, media engagement, and stakeholder collaboration. The World Bank will provide technical assistance to support the program through 2022.
Presentation del Clean Energy Package de la Comisión European en el Winter Seminar de Funseam 2016, organizado por Funseam y Gas Natural Fenosa
Paula PinhoHead of Unit – Energy Policy CoordinationEuropean Commission – DG ENERGY
This webinar is dedicated to the findings of the 3rd issue of the PV Grid Parity Monitor for Residential Consumers.
The Photovoltaic Grid Parity Monitor analyses PV competitiveness with retail electricity prices for residential consumers and assesses local regulation for self-consumption of 21 cities in 12 countries (Australia, Brazil, Chile, France, Germany, Italy, Israel, Japan, Mexico, Spain, UK, USA).
It is based on a rigorous and transparent methodology and has used real and updated data provided by local PV installers, local PV associations and other reliable players from the PV industry. A specific and in-depth analysis of retail electricity rates for each of the 21 cities is included.
Given that PV Grid Parity represents a unique opportunity to develop a local and sustainable power generation technology in a cost-effective way, this Monitor aims at giving benchmark elements and good practice models to foster the development of this technology.
http://www.leonardo-energy.org/webinar/3rd-photovoltaic-grid-parity-monitor-residential-consumers-session-1
Similar to 02 epia m-latour - budapest - 22 09 2011 (20)
This document provides information on various solar photovoltaic projects in Greece completed by RSEnergy Hellas Solartechnik EPE, including the system components and specifications. It lists over 30 projects ranging in size from 100kWp to 2MWp located across Greece. The projects utilized photovoltaic modules from manufacturers like aleo solar AG, First Solar, and Trina Solar, with mounting systems from Schletter, Alpha Solar, and inverters from SMA Solar Technology AG. RSEnergy also completed several charity projects donating solar systems to organizations helping children and the environment.
07 vicente guna fa 0073-feasibility of pvp_ps in spain-20110913_ed01pvsinbloom
This document summarizes a study on the feasibility of installing photovoltaic power plants (PVPPs) in marginal lands in Spain. The study identified criteria for classifying land as marginal, used GIS to map potentially suitable areas, and conducted an economic analysis of a pilot PVPP project compared to environmental restoration costs. Key findings included the potential for over 16GW of solar power from marginal lands and that PVPP investments had a more favorable cost-benefit ratio than restoration in the pilot case. The conclusions were that PVPPs in marginal areas could have positive socioeconomic and environmental impacts in Spain.
The document discusses the environmental sustainability of installing photovoltaic systems on marginal lands. It examines the main considerations for evaluating the environmental impact of solar energy systems, including energy payback time, greenhouse gas emissions, toxic emissions, and health and safety hazards. Specific cases of installing photovoltaic systems on marginal lands such as landfills, quarries, degraded areas, and former industrial sites are presented, highlighting opportunities for reclamation and reducing pollution, while generating renewable energy. Agreements in the Emilia Romagna region of Italy that promote installing photovoltaic systems on exhausted landfills are also summarized.
04 peter ujehelyi the role_of_energy_centrepvsinbloom
The Energy Efficiency, Environment and Energy Information Agency is responsible for promoting renewable energy sources (RES) in Hungary. It manages EU and national funds for energy efficiency and RES projects. Some of its key roles include managing the Energy Saving Credit Fund, running residential energy efficiency tenders, and acting as an Intermediate Body for the Environment and Energy Operational Programme which allocates over 22 billion Euros to environmental and energy projects in Hungary from 2007-2013. The agency provides support to applicants and final beneficiaries of these funds through consultations, workshops and contract management.
El documento presenta información sobre un seminario sobre aspectos técnicos, administrativos y financieros del negocio fotovoltaico. Se discutirán estos temas desde la perspectiva de un inversor, un ingeniero, un responsable de calidad y un director financiero. El proceso de legalización y puesta en marcha de una planta fotovoltaica en España es lento y costoso en comparación con otros países europeos. El nuevo real decreto de 2010 introduce cambios importantes como la reducción de tarifas y nuevos requisitos para cubiertas.
El documento resume los aspectos técnicos, administrativos y financieros del negocio fotovoltaico desde cuatro puntos de vista. Se explican las ventajas de invertir en energía solar desde el punto de vista financiero, incluyendo la rentabilidad y financiación de las instalaciones fotovoltaicas. Se destacan las subvenciones disponibles a través de la línea ICO de Economía Sostenible para financiar hasta el 100% de proyectos de energías renovables.
El documento resume el negocio fotovoltaico desde la perspectiva del inversor. Explica que la inversión en energía solar ha pasado de ser por motivos medioambientales a ser una inversión atractiva, rentable y escalable. Además, prevé que cuando se alcance la paridad de red, la forma de invertir cambiará y la participación de la energía solar en la matriz energética será imparable.
This document introduces photovoltaic power plants in Slovakia and discusses their benefits. It notes that solar energy falling on Earth is 30,000 times greater than humanity's total energy consumption. It then discusses the intensity of solar radiation in Slovakia, estimated energy production from photovoltaic panels in Slovakian climatic conditions, requirements for locating photovoltaic power plants, and legislative conditions and support mechanisms for photovoltaic technology in Slovakia. The document proposes a process for developing a photovoltaic power plant project for potential investors.
BUSINESS CASE: THE EXPERIENCE OF S.E. IN PV SECTORpvsinbloom
Slovenské elektrárne is developing renewable energy projects including solar power plants. Two 950 kWp solar power plants are being constructed, one near the Mochovce nuclear power plant and one on land owned by the Vojany coal plant. A 45 kWp solar installation is also planned for the roof of SE's headquarters in Bratislava. SE aims to diversify its energy portfolio and reduce its environmental impact through these renewable projects.
KEY INVESTOR’S RETURNS AND VALUE CONSIDERATIONS IN PVE PROJECTpvsinbloom
This document summarizes a seminar on photovoltaic (PV) investments from the perspective of investors and mergers and acquisitions. Some key points:
- Recent PV project acquisition prices in Europe range from €2-4 million per megawatt, often below €3 million. Most deals are for projects in Spain and Italy due to climate and regulatory support.
- Financial investors dominate the market, seeking stable returns. They may pay higher prices than strategic investors since they require lower equity returns.
- The most influential factors for PV project financial performance are the electricity selling price and capital expenditures. A 10% increase in price or 10% decrease in capex can increase equity internal rate of return
The PVs in Bloom Project was created to support the installation of small to medium-sized photovoltaic plants in marginal areas across Europe. The project aims to promote the sustainable diffusion of solar power according to environmental and functional criteria. While Germany and Italy are leading the growth of solar installations in Europe, policy changes like retroactive cuts to feed-in tariffs in some countries threaten to reduce profits and investor confidence. Global solar module production is expected to increase significantly in coming years, but supply may exceed demand in 2011, leading to price drops and order cancellations for inverter suppliers. European solar markets are forecasted to grow moderately without policy support, but could reach over 13 GW by 2014 under a policy-driven scenario.
Power-One is a $1 billion company headquartered in Camarillo, CA that manufactures solar inverters. It has 3,400 employees worldwide and manufacturing centers in the US, China, Malaysia, and Europe. Solarvolt is one of Power-One's largest distributors, distributing Power-One inverters and solar panels throughout Europe. The document provides information on Power-One and Solarvolt's product offerings and highlights the benefits of Power-One's centralized inverter systems for utility-scale solar installations.
UiPath Test Automation using UiPath Test Suite series, part 5DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 5. In this session, we will cover CI/CD with devops.
Topics covered:
CI/CD with in UiPath
End-to-end overview of CI/CD pipeline with Azure devops
Speaker:
Lyndsey Byblow, Test Suite Sales Engineer @ UiPath, Inc.
Goodbye Windows 11: Make Way for Nitrux Linux 3.5.0!SOFTTECHHUB
As the digital landscape continually evolves, operating systems play a critical role in shaping user experiences and productivity. The launch of Nitrux Linux 3.5.0 marks a significant milestone, offering a robust alternative to traditional systems such as Windows 11. This article delves into the essence of Nitrux Linux 3.5.0, exploring its unique features, advantages, and how it stands as a compelling choice for both casual users and tech enthusiasts.
Dr. Sean Tan, Head of Data Science, Changi Airport Group
Discover how Changi Airport Group (CAG) leverages graph technologies and generative AI to revolutionize their search capabilities. This session delves into the unique search needs of CAG’s diverse passengers and customers, showcasing how graph data structures enhance the accuracy and relevance of AI-generated search results, mitigating the risk of “hallucinations” and improving the overall customer journey.
TrustArc Webinar - 2024 Global Privacy SurveyTrustArc
How does your privacy program stack up against your peers? What challenges are privacy teams tackling and prioritizing in 2024?
In the fifth annual Global Privacy Benchmarks Survey, we asked over 1,800 global privacy professionals and business executives to share their perspectives on the current state of privacy inside and outside of their organizations. This year’s report focused on emerging areas of importance for privacy and compliance professionals, including considerations and implications of Artificial Intelligence (AI) technologies, building brand trust, and different approaches for achieving higher privacy competence scores.
See how organizational priorities and strategic approaches to data security and privacy are evolving around the globe.
This webinar will review:
- The top 10 privacy insights from the fifth annual Global Privacy Benchmarks Survey
- The top challenges for privacy leaders, practitioners, and organizations in 2024
- Key themes to consider in developing and maintaining your privacy program
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
Enchancing adoption of Open Source Libraries. A case study on Albumentations.AIVladimir Iglovikov, Ph.D.
Presented by Vladimir Iglovikov:
- https://www.linkedin.com/in/iglovikov/
- https://x.com/viglovikov
- https://www.instagram.com/ternaus/
This presentation delves into the journey of Albumentations.ai, a highly successful open-source library for data augmentation.
Created out of a necessity for superior performance in Kaggle competitions, Albumentations has grown to become a widely used tool among data scientists and machine learning practitioners.
This case study covers various aspects, including:
People: The contributors and community that have supported Albumentations.
Metrics: The success indicators such as downloads, daily active users, GitHub stars, and financial contributions.
Challenges: The hurdles in monetizing open-source projects and measuring user engagement.
Development Practices: Best practices for creating, maintaining, and scaling open-source libraries, including code hygiene, CI/CD, and fast iteration.
Community Building: Strategies for making adoption easy, iterating quickly, and fostering a vibrant, engaged community.
Marketing: Both online and offline marketing tactics, focusing on real, impactful interactions and collaborations.
Mental Health: Maintaining balance and not feeling pressured by user demands.
Key insights include the importance of automation, making the adoption process seamless, and leveraging offline interactions for marketing. The presentation also emphasizes the need for continuous small improvements and building a friendly, inclusive community that contributes to the project's growth.
Vladimir Iglovikov brings his extensive experience as a Kaggle Grandmaster, ex-Staff ML Engineer at Lyft, sharing valuable lessons and practical advice for anyone looking to enhance the adoption of their open-source projects.
Explore more about Albumentations and join the community at:
GitHub: https://github.com/albumentations-team/albumentations
Website: https://albumentations.ai/
LinkedIn: https://www.linkedin.com/company/100504475
Twitter: https://x.com/albumentations
In the rapidly evolving landscape of technologies, XML continues to play a vital role in structuring, storing, and transporting data across diverse systems. The recent advancements in artificial intelligence (AI) present new methodologies for enhancing XML development workflows, introducing efficiency, automation, and intelligent capabilities. This presentation will outline the scope and perspective of utilizing AI in XML development. The potential benefits and the possible pitfalls will be highlighted, providing a balanced view of the subject.
We will explore the capabilities of AI in understanding XML markup languages and autonomously creating structured XML content. Additionally, we will examine the capacity of AI to enrich plain text with appropriate XML markup. Practical examples and methodological guidelines will be provided to elucidate how AI can be effectively prompted to interpret and generate accurate XML markup.
Further emphasis will be placed on the role of AI in developing XSLT, or schemas such as XSD and Schematron. We will address the techniques and strategies adopted to create prompts for generating code, explaining code, or refactoring the code, and the results achieved.
The discussion will extend to how AI can be used to transform XML content. In particular, the focus will be on the use of AI XPath extension functions in XSLT, Schematron, Schematron Quick Fixes, or for XML content refactoring.
The presentation aims to deliver a comprehensive overview of AI usage in XML development, providing attendees with the necessary knowledge to make informed decisions. Whether you’re at the early stages of adopting AI or considering integrating it in advanced XML development, this presentation will cover all levels of expertise.
By highlighting the potential advantages and challenges of integrating AI with XML development tools and languages, the presentation seeks to inspire thoughtful conversation around the future of XML development. We’ll not only delve into the technical aspects of AI-powered XML development but also discuss practical implications and possible future directions.
GraphSummit Singapore | The Art of the Possible with Graph - Q2 2024Neo4j
Neha Bajwa, Vice President of Product Marketing, Neo4j
Join us as we explore breakthrough innovations enabled by interconnected data and AI. Discover firsthand how organizations use relationships in data to uncover contextual insights and solve our most pressing challenges – from optimizing supply chains, detecting fraud, and improving customer experiences to accelerating drug discoveries.
Threats to mobile devices are more prevalent and increasing in scope and complexity. Users of mobile devices desire to take full advantage of the features
available on those devices, but many of the features provide convenience and capability but sacrifice security. This best practices guide outlines steps the users can take to better protect personal devices and information.
Why You Should Replace Windows 11 with Nitrux Linux 3.5.0 for enhanced perfor...SOFTTECHHUB
The choice of an operating system plays a pivotal role in shaping our computing experience. For decades, Microsoft's Windows has dominated the market, offering a familiar and widely adopted platform for personal and professional use. However, as technological advancements continue to push the boundaries of innovation, alternative operating systems have emerged, challenging the status quo and offering users a fresh perspective on computing.
One such alternative that has garnered significant attention and acclaim is Nitrux Linux 3.5.0, a sleek, powerful, and user-friendly Linux distribution that promises to redefine the way we interact with our devices. With its focus on performance, security, and customization, Nitrux Linux presents a compelling case for those seeking to break free from the constraints of proprietary software and embrace the freedom and flexibility of open-source computing.
Unlocking Productivity: Leveraging the Potential of Copilot in Microsoft 365, a presentation by Christoforos Vlachos, Senior Solutions Manager – Modern Workplace, Uni Systems
For the full video of this presentation, please visit: https://www.edge-ai-vision.com/2024/06/building-and-scaling-ai-applications-with-the-nx-ai-manager-a-presentation-from-network-optix/
Robin van Emden, Senior Director of Data Science at Network Optix, presents the “Building and Scaling AI Applications with the Nx AI Manager,” tutorial at the May 2024 Embedded Vision Summit.
In this presentation, van Emden covers the basics of scaling edge AI solutions using the Nx tool kit. He emphasizes the process of developing AI models and deploying them globally. He also showcases the conversion of AI models and the creation of effective edge AI pipelines, with a focus on pre-processing, model conversion, selecting the appropriate inference engine for the target hardware and post-processing.
van Emden shows how Nx can simplify the developer’s life and facilitate a rapid transition from concept to production-ready applications.He provides valuable insights into developing scalable and efficient edge AI solutions, with a strong focus on practical implementation.
GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...Neo4j
Leonard Jayamohan, Partner & Generative AI Lead, Deloitte
This keynote will reveal how Deloitte leverages Neo4j’s graph power for groundbreaking digital twin solutions, achieving a staggering 100x performance boost. Discover the essential role knowledge graphs play in successful generative AI implementations. Plus, get an exclusive look at an innovative Neo4j + Generative AI solution Deloitte is developing in-house.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
Sudheer Mechineni, Head of Application Frameworks, Standard Chartered Bank
Discover how Standard Chartered Bank harnessed the power of Neo4j to transform complex data access challenges into a dynamic, scalable graph database solution. This keynote will cover their journey from initial adoption to deploying a fully automated, enterprise-grade causal cluster, highlighting key strategies for modelling organisational changes and ensuring robust disaster recovery. Learn how these innovations have not only enhanced Standard Chartered Bank’s data infrastructure but also positioned them as pioneers in the banking sector’s adoption of graph technology.
1. BUILDING ON THE EXPERIENCE OF EUROPEAN MARKETS … to successfully develop PV markets in the long term Marie Latour, National Policy Advisor 22 September 2011
2. Content PV MarketStatus in 2010 and prospects for 2011 Market Outlook until 2015 Policy recommendations to sustainablydevelop a market PV on the road to competitiveness
21. Two short term scenarios A Moderate scenario (“Business-as-usual” market ) no major reinforcement of existing support mechanisms, reasonable continuation of current FiTs aligned with PV systems prices. Policy-Driven scenario: continuation or introduction of support mechanisms, namely FiTs, strong political will to consider PV as a major power source in the coming years. removal of non-necessary administrative barriers and the streamlining of grid connection procedures.
24. Unlocking new markets, stabilizingothers In Europe: Need to consolidate/furtherexpandexistingmarkets Germany, Italy, France, Belgium, Spain, Greece, Portugal, UK, Bulgaria Need to unlock/develop medium size markets Hungary, Romania, Turkey, Poland? WeKeepfaith: Grid parityiswithinreach (2013-2020)
30. Pilar 1: Implementingsustainable support mechanisms Use Feed-in Tariffs or similar mechanisms Ensure transparent electricity costs for consumers Encourage the development of a sustainable market Guarantee a gradual market development with the corridor concept Develop a national roadmap to PV competitiveness
34. Implementingsustainable support mechanisms2. Ensure transparent electricity costs for consumers PV and all RES cost is fully transparent (Levy on electricity bills) Conventional electricity cost are not as transparent (Benefit from public support through state budget, collected via taxes, not reflected in electricity bills) Unfair competition between energy sources
56. This will continue thanks to further technological improvements and economies of scale.
57. A 36-51% decrease could be achieved on average by 2020.Market anomalies will disappear as the market matures > 50% Evolution of the PV system price in Europe
68. WHAT IS DYNAMIC GRID PARITY? Electricity consumer point of view Prosumer Usual consumer Self-consumptionassumptions: 30-75% Electricity bill Cost of PV electricity Trend > Reduced bill Electricity bill Trend Trend Trend Sales of excesselectricity Additional revenue
69. DYNAMIC GRID PARITY: THE 3 ROOFTOP SEGMENTS Based on the averageirradiance per country.
70. DIFFUSION OF DYNAMIC GRID PARITY ACROSS THE POPULATION Residential segment 2018 2019 2020 2015 2016 2017 100% 0% 0% 0% 0% 46% 100% 100% 0% 6% 48% 85% 38% 46% 85% 100% 100% 42% 58% 100% 100% 51% 0% 26% 82% 89% Real irradiancelevelscan change time whencompetitivenessisreached.
78. Any scheme rewarding higher electricity injected to the grid (self-consumption or net-metering)
79. Specific applications:e.g. BIPV on new or renovated roofs The generation cost (LCOE). The one used is achievable (based on real data) but local administrative costs still keep the prices artificially high in some countries. An unexpected surge in fossil fuel prices could lead to a rapid increase of electricity prices. Whatcouldaccelerate Whatcoulddelay The self-consumption case used for “prosumers” is rather conservative. All other net-metering schemes or systems that would pay a higher price for electricity injected in the grid or that could allow for a partial refund of grid costs (as it exists today in Italy) would increase the revenues from PV. Specific applications such as BIPV on existing buildings could be more expensive and delay the parity moment. Some investors are today asking for a “green premium” above the real investor’s risk. This could delay parity by, on average, one year in most market segments. BIPV applications on new or renovated roofs can reduce the price of systems. Competitivenesscanhappenevenquicker!
85. Administrative barriers must be removed and procedures streamlined so that additional costs do not increase the total price of a PV system.
86. Grid connections must be simple and easily authorised, and priority access to the grid for PV electricity should be ensured.
87. Political commitment to continuous research and development must be assured, so that PV technology continues to develop.
88.
89.
90. Dedicated support mechanisms could be required on a temporary basis for more specific technologies, such as residential and commercial BIPV, or innovative current and upcoming technologies such as concentrated solar PV, organic PV or dyesensitised solar cells.
CZ and RO have already published at the end of last week their NRAPSEE: estonia
Whereis PV capacityinstalledworldwide? 43% in Germany10% in Spain9% in Italy9% in Japan6% in the US5% in Czechrepublic
To come to a forecastyoumay use the scenario technique, for a betteroverview and understanding of different solutions
Observing PV policies in EuropeClimate change and the perspective of fossil fuel scarcity have strengthened the need to promote renewable energies. The deployment of solar photovoltaic electricity (PV) is playing a crucial role in helping the EU meet its commitment in fighting climate change and ensure security of supply, reducing Europe’s dependency on energy imports. Further to this, the global economic situation requires ensuring the best use of financial incentives, even if they are not directly paid by taxpayers. To help tackle these important issues, the European Photovoltaic Industry Association (EPIA) advocates sustainable policies in order to keep the PV industry and market on a sustainable yet accelerated growth path.In the context of the fast evolution of the European PV market in recent years, the need to permanently monitor market dynamics has led to the creation of the Photovoltaic Observatory. The Photovoltaic Observatory identifies recommended conditions for market development and best practices for the sustainable development of PV by basing its analysis on examining existing policies of several key countries. The Photovoltaic Observatory also focuses on relevant regulatory issues, financial incentives, administrative barriers and grid connection procedures.
Key Recommendation 1: Use Feed-in Tariffs or similar mechanismsFeed-in Tariff (FiT) : obligation for utilities to conclude purchase agreements for the solar electricity generated by PV systems. Cost of solar electricity purchased is passed on through the electricity bill to the consumer does not negatively affect government finances. FiTs have proven their ability to develop a sustainable PV industry (where introduced as reliable and predictable market mechanisms) that in return has progressively reduced costs towards grid parity. To be sustainable, it is critical that FiTs are guaranteed for a significant period of time (at least 20 years), without retroactivityFeed-in Premium (FiP) is a new support mechanism that may prove to be a viable alternative to FiTs. However, the FiP concept is new and is yet to be proved. It should carefully be considered and worked out in more detail before it is tested on the market. Under the FiP, utilities pay a premium on top of the price of electricity while the invoice of the consumer is reduced by the amount of PV electricity produced. If electricity produced by PV exceeds consumption, the difference should be eligible for a Feed-in Tariff. With the growing penetration of PV in many countries, support policies can be fine-tuned in order to drive the development of a specific market segment where this is relevant. Direct consumption premiums, additional incentives for Building Integrated PV (BIPV), compensation for regional irradiation variations, orientation premiums such as East or West-oriented PV systems as well as storage premiums are all examples of possible additional provisions.Key Recommendation 2: Ensure transparent electricity costs for consumersAs the cost of renewable energy sources such as PV is very transparent to the consumer through the FiT component on the electricity bill, the same transparency should exist for the cost of electricity from other conventional sources. These typically benefit from significant government support schemes that are not always reflected in the electricity price but are financed through other public means; in particular taxes paid by the same consumers but not accounted for on their electricity bill. On average, estimates suggest that conventional sources of electricity generation benefit from seven-times as much support as renewable energy sources. In addition the lack of transparent carbon costs indirectly supports non renewable energies.The increased mix of energy from renewable sources such as PV has raised a greater awareness among consumers about the need to increase the efficiency of their electricity consumption. So while the FiT has a visible impact on the electricity bill, it is at least partially compensated by the decrease of electricity demand. In addition, marginal cost of electricity produced from PV systems after the expiration of the FiT period is close to zero; therefore electricity prices will benefit in the long term. Most importantly, and in view of continued foreseeable reduction of FiTs over time, the PV industry is committed to significantly reducing the cost of PV systems to make it an affordable, mainstream source of power. Key Recommendation 3: Encourage the development of a sustainable market by assessing profitability on a regular basis and adapting support levels accordinglySustainable market growth allows the industry to develop and creates added value for the society and the economy as a whole. A critical aspect of sustainable development is ensuring adequate levels of profitability that in turn ensures the availability of capital for investments while avoiding speculative markets. Consequently, investments in PV projects need to be at par with other investments of equivalent risk levels. The figure 1 illustrates market developments under different support strategies. The green line represents a sustainable market growth. The red line shows a rapid and uncontrolled market peak, followed by a collapse due to sudden policy adjustment, while the blue line illustrates a stagnating market due to an incentive deemed insufficient.Assessing the profitability through IRR calculationsAll available support scheme components (including FiT, tax rebates and investment subsidies) must be taken into account when calculating the Internal Rate of Return (IRR) of a PV investment. Its sustainability must be assessed by considering all local factors that impact the relative profitability of a PV investment. Table 1 presents an estimate of average sustainable IRR levels in a standard European country. Those percentages need to be adapted depending on local market conditions. Key Recommendation 4: Guarantee a gradual market development with the corridor conceptAn uncontrolled market evolution tends to create “stop-and-go” policies that risk undermining stakeholders’ confidence and investor appetite for PV. In that respect, there is a need for a flexible market mechanism that is able to take more rapid cost digressions in the market into account and to adapt support schemes in order to ensure a sustainable growth path. The market corridor – as introduced in Germany for example - regulates the FiT based on market development over the preceding period (i.e. quarter, semester or year), thus allowing FiTs to be adapted so as to maintain growth within predefined boundaries. The FiT level is decreased on a regular basis in relation to the cumulated market level over a period passing below or above a set of predefined thresholds (quarterly or semi-annual revisions). The review periods should typically be set once a year to keep the administrative burden manageable for governments and to remain compatible with the visibility needed for investment cycles. Key Recommendation 5: Develop a national roadmap to PV competitivenessWith the ongoing decrease in installed PV system costs and the increase in conventional electricity prices, the use of financial incentives will progressively be phased out, as competitiveness is reached. A realistic roadmap to grid parity should be defined for every country along with concepts for market mechanisms that treat all electricity sources equally
Key Recommendation 1: Use Feed-in Tariffs or similar mechanismsFeed-in Tariff (FiT) : obligation for utilities to conclude purchase agreements for the solar electricity generated by PV systems. Cost of solar electricity purchased is passed on through the electricity bill to the consumer does not negatively affect government finances. FiTs have proven their ability to develop a sustainable PV industry (where introduced as reliable and predictable market mechanisms) that in return has progressively reduced costs towards grid parity. To be sustainable, it is critical that FiTs are guaranteed for a significant period of time (at least 20 years), without retroactivityFeed-in Premium (FiP) is a new support mechanism that may prove to be a viable alternative to FiTs. However, the FiP concept is new and is yet to be proved. It should carefully be considered and worked out in more detail before it is tested on the market. Under the FiP, utilities pay a premium on top of the price of electricity while the invoice of the consumer is reduced by the amount of PV electricity produced. If electricity produced by PV exceeds consumption, the difference should be eligible for a Feed-in Tariff. With the growing penetration of PV in many countries, support policies can be fine-tuned in order to drive the development of a specific market segment where this is relevant. Direct consumption premiums, additional incentives for Building Integrated PV (BIPV), compensation for regional irradiation variations, orientation premiums such as East or West-oriented PV systems as well as storage premiums are all examples of possible additional provisions.Key Recommendation 2: Ensure transparent electricity costs for consumersAs the cost of renewable energy sources such as PV is very transparent to the consumer through the FiT component on the electricity bill, the same transparency should exist for the cost of electricity from other conventional sources. These typically benefit from significant government support schemes that are not always reflected in the electricity price but are financed through other public means; in particular taxes paid by the same consumers but not accounted for on their electricity bill. On average, estimates suggest that conventional sources of electricity generation benefit from seven-times as much support as renewable energy sources. In addition the lack of transparent carbon costs indirectly supports non renewable energies.The increased mix of energy from renewable sources such as PV has raised a greater awareness among consumers about the need to increase the efficiency of their electricity consumption. So while the FiT has a visible impact on the electricity bill, it is at least partially compensated by the decrease of electricity demand. In addition, marginal cost of electricity produced from PV systems after the expiration of the FiT period is close to zero; therefore electricity prices will benefit in the long term. Most importantly, and in view of continued foreseeable reduction of FiTs over time, the PV industry is committed to significantly reducing the cost of PV systems to make it an affordable, mainstream source of power. Key Recommendation 3: Encourage the development of a sustainable market by assessing profitability on a regular basis and adapting support levels accordinglySustainable market growth allows the industry to develop and creates added value for the society and the economy as a whole. A critical aspect of sustainable development is ensuring adequate levels of profitability that in turn ensures the availability of capital for investments while avoiding speculative markets. Consequently, investments in PV projects need to be at par with other investments of equivalent risk levels. The figure 1 illustrates market developments under different support strategies. The green line represents a sustainable market growth. The red line shows a rapid and uncontrolled market peak, followed by a collapse due to sudden policy adjustment, while the blue line illustrates a stagnating market due to an incentive deemed insufficient.Assessing the profitability through IRR calculationsAll available support scheme components (including FiT, tax rebates and investment subsidies) must be taken into account when calculating the Internal Rate of Return (IRR) of a PV investment. Its sustainability must be assessed by considering all local factors that impact the relative profitability of a PV investment. Table 1 presents an estimate of average sustainable IRR levels in a standard European country. Those percentages need to be adapted depending on local market conditions. Key Recommendation 4: Guarantee a gradual market development with the corridor conceptAn uncontrolled market evolution tends to create “stop-and-go” policies that risk undermining stakeholders’ confidence and investor appetite for PV. In that respect, there is a need for a flexible market mechanism that is able to take more rapid cost digressions in the market into account and to adapt support schemes in order to ensure a sustainable growth path. The market corridor – as introduced in Germany for example - regulates the FiT based on market development over the preceding period (i.e. quarter, semester or year), thus allowing FiTs to be adapted so as to maintain growth within predefined boundaries. The FiT level is decreased on a regular basis in relation to the cumulated market level over a period passing below or above a set of predefined thresholds (quarterly or semi-annual revisions). The review periods should typically be set once a year to keep the administrative burden manageable for governments and to remain compatible with the visibility needed for investment cycles. Key Recommendation 5: Develop a national roadmap to PV competitivenessWith the ongoing decrease in installed PV system costs and the increase in conventional electricity prices, the use of financial incentives will progressively be phased out, as competitiveness is reached. A realistic roadmap to grid parity should be defined for every country along with concepts for market mechanisms that treat all electricity sources equally
Key Recommendation 1: Use Feed-in Tariffs or similar mechanismsFeed-in Tariff (FiT) : obligation for utilities to conclude purchase agreements for the solar electricity generated by PV systems. Cost of solar electricity purchased is passed on through the electricity bill to the consumer does not negatively affect government finances. FiTs have proven their ability to develop a sustainable PV industry (where introduced as reliable and predictable market mechanisms) that in return has progressively reduced costs towards grid parity. To be sustainable, it is critical that FiTs are guaranteed for a significant period of time (at least 20 years), without retroactivityFeed-in Premium (FiP) is a new support mechanism that may prove to be a viable alternative to FiTs. However, the FiP concept is new and is yet to be proved. It should carefully be considered and worked out in more detail before it is tested on the market. Under the FiP, utilities pay a premium on top of the price of electricity while the invoice of the consumer is reduced by the amount of PV electricity produced. If electricity produced by PV exceeds consumption, the difference should be eligible for a Feed-in Tariff. With the growing penetration of PV in many countries, support policies can be fine-tuned in order to drive the development of a specific market segment where this is relevant. Direct consumption premiums, additional incentives for Building Integrated PV (BIPV), compensation for regional irradiation variations, orientation premiums such as East or West-oriented PV systems as well as storage premiums are all examples of possible additional provisions.Key Recommendation 2: Ensure transparent electricity costs for consumersAs the cost of renewable energy sources such as PV is very transparent to the consumer through the FiT component on the electricity bill, the same transparency should exist for the cost of electricity from other conventional sources. These typically benefit from significant government support schemes that are not always reflected in the electricity price but are financed through other public means; in particular taxes paid by the same consumers but not accounted for on their electricity bill. On average, estimates suggest that conventional sources of electricity generation benefit from seven-times as much support as renewable energy sources. In addition the lack of transparent carbon costs indirectly supports non renewable energies.The increased mix of energy from renewable sources such as PV has raised a greater awareness among consumers about the need to increase the efficiency of their electricity consumption. So while the FiT has a visible impact on the electricity bill, it is at least partially compensated by the decrease of electricity demand. In addition, marginal cost of electricity produced from PV systems after the expiration of the FiT period is close to zero; therefore electricity prices will benefit in the long term. Most importantly, and in view of continued foreseeable reduction of FiTs over time, the PV industry is committed to significantly reducing the cost of PV systems to make it an affordable, mainstream source of power. Key Recommendation 3: Encourage the development of a sustainable market by assessing profitability on a regular basis and adapting support levels accordinglySustainable market growth allows the industry to develop and creates added value for the society and the economy as a whole. A critical aspect of sustainable development is ensuring adequate levels of profitability that in turn ensures the availability of capital for investments while avoiding speculative markets. Consequently, investments in PV projects need to be at par with other investments of equivalent risk levels. The figure 1 illustrates market developments under different support strategies. The green line represents a sustainable market growth. The red line shows a rapid and uncontrolled market peak, followed by a collapse due to sudden policy adjustment, while the blue line illustrates a stagnating market due to an incentive deemed insufficient.Assessing the profitability through IRR calculationsAll available support scheme components (including FiT, tax rebates and investment subsidies) must be taken into account when calculating the Internal Rate of Return (IRR) of a PV investment. Its sustainability must be assessed by considering all local factors that impact the relative profitability of a PV investment. Table 1 presents an estimate of average sustainable IRR levels in a standard European country. Those percentages need to be adapted depending on local market conditions. Key Recommendation 4: Guarantee a gradual market development with the corridor conceptAn uncontrolled market evolution tends to create “stop-and-go” policies that risk undermining stakeholders’ confidence and investor appetite for PV. In that respect, there is a need for a flexible market mechanism that is able to take more rapid cost digressions in the market into account and to adapt support schemes in order to ensure a sustainable growth path. The market corridor – as introduced in Germany for example - regulates the FiT based on market development over the preceding period (i.e. quarter, semester or year), thus allowing FiTs to be adapted so as to maintain growth within predefined boundaries. The FiT level is decreased on a regular basis in relation to the cumulated market level over a period passing below or above a set of predefined thresholds (quarterly or semi-annual revisions). The review periods should typically be set once a year to keep the administrative burden manageable for governments and to remain compatible with the visibility needed for investment cycles. Key Recommendation 5: Develop a national roadmap to PV competitivenessWith the ongoing decrease in installed PV system costs and the increase in conventional electricity prices, the use of financial incentives will progressively be phased out, as competitiveness is reached. A realistic roadmap to grid parity should be defined for every country along with concepts for market mechanisms that treat all electricity sources equally
Key Recommendation 1: Use Feed-in Tariffs or similar mechanismsFeed-in Tariff (FiT) : obligation for utilities to conclude purchase agreements for the solar electricity generated by PV systems. Cost of solar electricity purchased is passed on through the electricity bill to the consumer does not negatively affect government finances. FiTs have proven their ability to develop a sustainable PV industry (where introduced as reliable and predictable market mechanisms) that in return has progressively reduced costs towards grid parity. To be sustainable, it is critical that FiTs are guaranteed for a significant period of time (at least 20 years), without retroactivityFeed-in Premium (FiP) is a new support mechanism that may prove to be a viable alternative to FiTs. However, the FiP concept is new and is yet to be proved. It should carefully be considered and worked out in more detail before it is tested on the market. Under the FiP, utilities pay a premium on top of the price of electricity while the invoice of the consumer is reduced by the amount of PV electricity produced. If electricity produced by PV exceeds consumption, the difference should be eligible for a Feed-in Tariff. With the growing penetration of PV in many countries, support policies can be fine-tuned in order to drive the development of a specific market segment where this is relevant. Direct consumption premiums, additional incentives for Building Integrated PV (BIPV), compensation for regional irradiation variations, orientation premiums such as East or West-oriented PV systems as well as storage premiums are all examples of possible additional provisions.Key Recommendation 2: Ensure transparent electricity costs for consumersAs the cost of renewable energy sources such as PV is very transparent to the consumer through the FiT component on the electricity bill, the same transparency should exist for the cost of electricity from other conventional sources. These typically benefit from significant government support schemes that are not always reflected in the electricity price but are financed through other public means; in particular taxes paid by the same consumers but not accounted for on their electricity bill. On average, estimates suggest that conventional sources of electricity generation benefit from seven-times as much support as renewable energy sources. In addition the lack of transparent carbon costs indirectly supports non renewable energies.The increased mix of energy from renewable sources such as PV has raised a greater awareness among consumers about the need to increase the efficiency of their electricity consumption. So while the FiT has a visible impact on the electricity bill, it is at least partially compensated by the decrease of electricity demand. In addition, marginal cost of electricity produced from PV systems after the expiration of the FiT period is close to zero; therefore electricity prices will benefit in the long term. Most importantly, and in view of continued foreseeable reduction of FiTs over time, the PV industry is committed to significantly reducing the cost of PV systems to make it an affordable, mainstream source of power. Key Recommendation 3: Encourage the development of a sustainable market by assessing profitability on a regular basis and adapting support levels accordinglySustainable market growth allows the industry to develop and creates added value for the society and the economy as a whole. A critical aspect of sustainable development is ensuring adequate levels of profitability that in turn ensures the availability of capital for investments while avoiding speculative markets. Consequently, investments in PV projects need to be at par with other investments of equivalent risk levels. The figure 1 illustrates market developments under different support strategies. The green line represents a sustainable market growth. The red line shows a rapid and uncontrolled market peak, followed by a collapse due to sudden policy adjustment, while the blue line illustrates a stagnating market due to an incentive deemed insufficient.Assessing the profitability through IRR calculationsAll available support scheme components (including FiT, tax rebates and investment subsidies) must be taken into account when calculating the Internal Rate of Return (IRR) of a PV investment. Its sustainability must be assessed by considering all local factors that impact the relative profitability of a PV investment. Table 1 presents an estimate of average sustainable IRR levels in a standard European country. Those percentages need to be adapted depending on local market conditions. Key Recommendation 4: Guarantee a gradual market development with the corridor conceptAn uncontrolled market evolution tends to create “stop-and-go” policies that risk undermining stakeholders’ confidence and investor appetite for PV. In that respect, there is a need for a flexible market mechanism that is able to take more rapid cost digressions in the market into account and to adapt support schemes in order to ensure a sustainable growth path. The market corridor – as introduced in Germany for example - regulates the FiT based on market development over the preceding period (i.e. quarter, semester or year), thus allowing FiTs to be adapted so as to maintain growth within predefined boundaries. The FiT level is decreased on a regular basis in relation to the cumulated market level over a period passing below or above a set of predefined thresholds (quarterly or semi-annual revisions). The review periods should typically be set once a year to keep the administrative burden manageable for governments and to remain compatible with the visibility needed for investment cycles. Key Recommendation 5: Develop a national roadmap to PV competitivenessWith the ongoing decrease in installed PV system costs and the increase in conventional electricity prices, the use of financial incentives will progressively be phased out, as competitiveness is reached. A realistic roadmap to grid parity should be defined for every country along with concepts for market mechanisms that treat all electricity sources equally
Key Recommendation 1: Use Feed-in Tariffs or similar mechanismsFeed-in Tariff (FiT) : obligation for utilities to conclude purchase agreements for the solar electricity generated by PV systems. Cost of solar electricity purchased is passed on through the electricity bill to the consumer does not negatively affect government finances. FiTs have proven their ability to develop a sustainable PV industry (where introduced as reliable and predictable market mechanisms) that in return has progressively reduced costs towards grid parity. To be sustainable, it is critical that FiTs are guaranteed for a significant period of time (at least 20 years), without retroactivityFeed-in Premium (FiP) is a new support mechanism that may prove to be a viable alternative to FiTs. However, the FiP concept is new and is yet to be proved. It should carefully be considered and worked out in more detail before it is tested on the market. Under the FiP, utilities pay a premium on top of the price of electricity while the invoice of the consumer is reduced by the amount of PV electricity produced. If electricity produced by PV exceeds consumption, the difference should be eligible for a Feed-in Tariff. With the growing penetration of PV in many countries, support policies can be fine-tuned in order to drive the development of a specific market segment where this is relevant. Direct consumption premiums, additional incentives for Building Integrated PV (BIPV), compensation for regional irradiation variations, orientation premiums such as East or West-oriented PV systems as well as storage premiums are all examples of possible additional provisions.Key Recommendation 2: Ensure transparent electricity costs for consumersAs the cost of renewable energy sources such as PV is very transparent to the consumer through the FiT component on the electricity bill, the same transparency should exist for the cost of electricity from other conventional sources. These typically benefit from significant government support schemes that are not always reflected in the electricity price but are financed through other public means; in particular taxes paid by the same consumers but not accounted for on their electricity bill. On average, estimates suggest that conventional sources of electricity generation benefit from seven-times as much support as renewable energy sources. In addition the lack of transparent carbon costs indirectly supports non renewable energies.The increased mix of energy from renewable sources such as PV has raised a greater awareness among consumers about the need to increase the efficiency of their electricity consumption. So while the FiT has a visible impact on the electricity bill, it is at least partially compensated by the decrease of electricity demand. In addition, marginal cost of electricity produced from PV systems after the expiration of the FiT period is close to zero; therefore electricity prices will benefit in the long term. Most importantly, and in view of continued foreseeable reduction of FiTs over time, the PV industry is committed to significantly reducing the cost of PV systems to make it an affordable, mainstream source of power. Key Recommendation 3: Encourage the development of a sustainable market by assessing profitability on a regular basis and adapting support levels accordinglySustainable market growth allows the industry to develop and creates added value for the society and the economy as a whole. A critical aspect of sustainable development is ensuring adequate levels of profitability that in turn ensures the availability of capital for investments while avoiding speculative markets. Consequently, investments in PV projects need to be at par with other investments of equivalent risk levels. The figure 1 illustrates market developments under different support strategies. The green line represents a sustainable market growth. The red line shows a rapid and uncontrolled market peak, followed by a collapse due to sudden policy adjustment, while the blue line illustrates a stagnating market due to an incentive deemed insufficient.Assessing the profitability through IRR calculationsAll available support scheme components (including FiT, tax rebates and investment subsidies) must be taken into account when calculating the Internal Rate of Return (IRR) of a PV investment. Its sustainability must be assessed by considering all local factors that impact the relative profitability of a PV investment. Table 1 presents an estimate of average sustainable IRR levels in a standard European country. Those percentages need to be adapted depending on local market conditions. Key Recommendation 4: Guarantee a gradual market development with the corridor conceptAn uncontrolled market evolution tends to create “stop-and-go” policies that risk undermining stakeholders’ confidence and investor appetite for PV. In that respect, there is a need for a flexible market mechanism that is able to take more rapid cost digressions in the market into account and to adapt support schemes in order to ensure a sustainable growth path. The market corridor – as introduced in Germany for example - regulates the FiT based on market development over the preceding period (i.e. quarter, semester or year), thus allowing FiTs to be adapted so as to maintain growth within predefined boundaries. The FiT level is decreased on a regular basis in relation to the cumulated market level over a period passing below or above a set of predefined thresholds (quarterly or semi-annual revisions). The review periods should typically be set once a year to keep the administrative burden manageable for governments and to remain compatible with the visibility needed for investment cycles. Key Recommendation 5: Develop a national roadmap to PV competitivenessWith the ongoing decrease in installed PV system costs and the increase in conventional electricity prices, the use of financial incentives will progressively be phased out, as competitiveness is reached. A realistic roadmap to grid parity should be defined for every country along with concepts for market mechanisms that treat all electricity sources equally
The module price reflected around 45-60% of the total installed system price in 2010,depending on the segment and the technology. Therefore, it is still the most important cost driver.
The cost of an investment in a PV system is driven mostly by the initial up-front investment orcapital expenditure. Additional costs encountered during a system’s lifetime are comparativelylow. System prices have declined rapidly; during the last 5 years a price decrease of 50% has beenrealised in Europe. - Until the end of 2003: Prices were high because the technology was less advanced and the market was smaller. - Since 2004 the price started to increase until its reached its highest point in 2005 during the polysilicon shortage. - During 2009, the price dropped rapidly indeed because of a number of reasons:- Increased production capacity- Decreased subsidy or equivalent financial support- Slow market growth in comparison with 2008 (only 17.5% year on year growth)- During 2010, the price decrease was much smaller because of the following reasons:- Higher demand than expected- Bottleneck in the inverter supply (because of a shortage in a specific micro-electronic component needed for inverter production)- During the first half of 2011, the price has dropped tremendously because of:- Subsidy cuts- Slow market because of uncertainty on certain large markets- OvercapacitySo it is clear that prices do not decrease in a continuous way, but are subject to shocks in supply, demand, policies, technology evolution, exchange rate evolution, etc.However, for the period 2010-2020, the graph shows a continuous decrease. This must be considered as a trend more than a clear roadmap. Over the next 10 years, system prices could decline by about 0.83-1.59 €/Wp – a price decrease of 36-51%, depending on the segment. The study assumes competitive cross-European hardware prices (modules, inverters, structural components) as well as competitive development prices (including the marginsfor installers). The ranges in the following figures therefore reflects the system price under these mature market prices. Mature market conditions are the following:• Reduced margins• Experienced network of installers, developers and retailers• Fair competition between players• Transparent and efficient administrative rules and grid connection processesThe observed market prices in several countries contrast with the lowest prices in Germany, where the market is more mature. The lack of maturity of several PV markets in Europe has kept prices in most EU countrieshigher than in Germany. There is no single, easily remediable reason why PV system pricesare higher in some countries than in others; rather, there are many factors to explain thecurrent price variance. Labour cost is not sufficient to account for any major difference.However, smaller markets with a lack of competition, political choices that only favour themost expensive PV systems, as well as administrative rules and grid connection proceduresthat increase the time to market could impact the price level significantly. Moreover,unsustainable support schemes could also artificially slow down the price decrease.
The graph shows that there is a huge potential for cost decline: around 50% until 2020. The graph indicates a wide range for PV’s generation cost in Europe. This widerange is due to the large set of differing parameters taken into account: • 2 different sets of technologies• National differences among the 5 countries studied with respect to irradiance levels, financial conditions (including VAT for the residential segment), total installed PV system prices and operation and maintenance costs• 4 different market segments: residential (3kWp rooftop), commercial (100kWp rooftop), industrial (500kWp rooftop) and ground-mounted (2.5MWp)However, the range in 2020 narrows to almost half of the range in 2010. The range below therefore reflects the generation cost assuming maturemarket prices. Accordingly, the average European LCOE for 2010 (0.239 €/kWh) andfor the first half of 2011 (0.203 €/kWh) is shown in the figure below. This calculationconsiders the real market volumes and market segmentation in Europe.
Competitiveness is analysed by comparing PV’s generation cost with the PVrevenues (dynamic grid parity) and/or directly with the generation cost of otherelectricity sources (generation value competitiveness).Two specific situations should be considered:• DYNAMIC GRID PARITY refers to situation where at least part of the PV electricity is used for local consumption. When an electricity consumer invests in a PV system that will provide apart of his electricity needs at a competitive price, he goes from being a consumer to a “prosumer”. PV will reach dynamic grid parity when the electricity produced by the PV system throughout its lifetime is at least ascompetitive as the electricity bought from the grid – now and in the future.• GENERATION VALUE COMPETITIVENESS refers to PV electricity generation with the purpose to inject the electricity onto the grid.PV is increasingly being integrated into power generation portfolios of power utilities and independent power producers as a new source of electricityproduction.
Fordynamicgridparity, we have to look through the eyes of an electricity consumer. Everyelectricity consumer has the choicebetweeneitherinvesting in a PV system or not. You canbe a pure consumer or a consumer and producerat the same time (prosumer). Dynamicgridparityisthenreachedwhenitbecomes more interesting to supply part of the electricityyourself and thus to become a prosumerratherthan a pure consumer. A normal consumer (one that has not invested in a PV system) pays his normal electricity bill. This bill consists of the followingelements: the cost of gridelectricity, the gridcosts and taxes. The gridcostsare meant to finance the operation, maintenance and development of the grid at both distribution and transmission levels. They consist of a variable and a fixed part. You pay a fixedamountjust for the convenience of beingconnected to the grid and a variable amount for using the network thatdepends on how muchelectricityyou consume. For an electricity consumer whoisat the same time the owner of a PV system, the electricity bill issignificantlylower. Part of the electricityyouneedwillbesupplied by the PV system and youwill not have to buyitfromyourelectricity provider; you have becomeyouown provider!Assumptions on self-consumption- A 30% self-consumption rate was chosen for residential applications (meaning30% of PV electricity production is immediately consumed locally while the remaining70% is injected on the network; the additional demand for electricity is of coursebought from the grid). Higher shares could be reached with phased consumption forinstance by using electric vehicles. - For commercial and industrial applications, a higher level of 75% of self-consumptionis considered. Commercial and industrial applications can deliver electricity during weekdays when there is increased consumption, which is less often the case with residential applications as homeowners are usually out of their houses during weekdays.Theelectricityfromyour PV system canthusbeused for yourownelectricityconsumption (up to a certain amount). The remainingelectricitythenwillbesold on the electricitymarket. The profit youcanmakefrom a PV system isthus a combination of:The savings on the electricity bill becauseyouproduce part of yourelectricityyourself.The money youearn by selling the excesselectricity on the market.Dynamicgridparityis possible because of the trends towardshigherelectricityprices and lower PV generationcosts.The study assumes that, in the case of self-consumption, the compensation of theelectricity bill will not include fixed grid costs. While the share of fixed grid costs remains quite low with regard to the total grid costs (5-10% nowadays), EPIA estimates this situation will change inthe future to compensate for the bi-directional use of the grid (when excess electricity is injected on the network) and the decrease of electricity consumption (due to self-consumption). This has not been considered here,since competitiveness could be reached in most major EU countries before this will havea significant financial impact on grid operators.A part of additionalgridcostswillbemutualisedsincetheyoriginate not onlyfrom PV systems but from all decentralisedenergy sources and from new load applications, such as electricvehicles, etc.
The following table shows the results for whendynamicgridparitycanbereached in the different segments in the different countries. The dates are determinedusing the averageirradiance in each of the countries. Therefore, in some areas in each country, dynamicgridparitycanoccurearlier, whereas in other areas itwilloccurlater. Dynamic grid parity could occur at the earliest in Italy in 2013 in the commercial segment and then spread all across the continent in the different market segments by 2020. In the industrial segment, 2014 will be the starting year and for the smaller residential applications, dynamic grid parity can be reached from 2015 onwards. Moreover, the graph shows two specific points for 2010 and 2011. This is the average European generation cost for 2010 and for the first half of 2011 are shown for each of the segments in these figures.
It wasclearfrom the previous graph thatdynamicgridparity in the residential segment couldbereachedas early as 2015 in Italyand before 2020 itcanbereached in all countries considered. However, this is based on the average irradiation values for each of the countries. This does not mean that the entire population is already affected by dynamic grid parity in that particular year.In most countries, the entire population will be able to benefit from PV electricity at a competitive price in a couple of years. The following graphs show the diffusion of dynamic grid parity for the residential segment. The percentages express the relative number of households affected by dynamic grid parity until that year (for residential systems).
The following table shows the results for whengeneration value competitivenesscanbereached in the different segments in the different countries. The dates are determinedusing the averageirradiance in each of the countries. Therefore, in some areas in each country, dynamicgridparitycanoccurearlier, whereas in other areas itwilloccurlater. Generation value competitivenesscouldbereachedas early as 2014 in the ground-mounted segment in Italyand thenspread out in Europe to manyadditional countries by 2020. In the industrial segment, 2015 is the startingyear in Italy, France and Spain. The graph shows again two specific points for 2010 and 2011. This is the average European generation cost for 2010 and for the first half of 2011 are shown for each of the segments in these figures.
The dynamic evolution of all parameters, from PV system prices to electricityprices, can vary greatly in the coming years, providing at the end some moving targetsfor competitiveness. This should not change the final conclusion but could providesurprises in some market segments. Moreover, there are a number of elementsthatcoulddelay or acceleratecompetitiveness.Market anomalies are deviations from the “mature market assumption” used in the study. Mature market conditions are the following:• Reduced margins• Experienced network of installers, developers and retailers• Fair competition between players• Transparent and efficient administrative rules and grid connection processes
The decreases in system prices and accordingly in generation costs are feasible from acombined technological and market deployment point of view. But in some countriesmarket distortions keep PV system prices artificially high. In order to remove thosedistorting factors and achieve full PV competitiveness, and also to boost investors’confidence in PV technology, political commitment to the following priorities is essential:• The market must continue to grow in a sustainable way. Any hindrance of marketgrowth, both in and outside Europe, will slow the price decrease and delaycompetitiveness.• Market development must occur in all countries and all market segments. Thiswill trigger the development of a dense network of trained and certified installers whichwill decrease the cost of installation and construction, create sustainable andcompetitive margins for all players in the PV industry and accelerate cost decreasebecause of scaling and learning effects.• Support schemes (including FiTs) need to be adapted on a regular basis to avoidmarket disturbance. Profitability can be assessed on a regular basis and supportschemes adapted accordingly.• Administrative barriers must be removed and procedures streamlined so thatadditional costs do not increase total PV system prices.• Grid connections must be simple and easily authorised, and priority access to thegrid for PV electricity should be ensured.• Political commitment to continuous research and development must be assured,so that PV technology continues to develop. Innovation will lead to increased efficiencyand accelerate competitiveness.• PV should be considered a low-risk investment; therefore reasonable profitsshould be taken in line with that risk level. Investors should look at the real riskassociated with the installation and exploitation of PV systems to ensure easy accessto inexpensive financing.
Smart deployment of support mechanisms, such as FiTs, has helped PV gain a marketfoothold in many countries of the world, compensating for the difference in costcompetitiveness between PV electricity and that of conventional sources. As thatcompetitiveness gap narrows for the PV sector, due to technology development andparallel decrease of generation cost, PV will be able to rely progressively less on dedicatedfinancial support, leading to the phasing out of such support schemes. But achieving competitiveness should not mean the end of all incentives; current support mechanismscould, depending on the segment considered, be replaced by more indirect and timelimitedincentives.This phasing out of support schemes will happen even quicker if internalisation of externaleffects is implemented for all technologies and subsidies to other energy sources are alsophased out, leading to a truly level playing field.Once such a framework is established, policymakers should consider the followingoptions in the residential, commercial and industrial segments (dynamic grid parity):• Put in place mechanisms that will help close the gap and cover the high up-frontinvestment: fiscal incentives such as tax rebates, reduced VAT and zero/low interestlong-term guaranteed loans might be relevant if tailored to national specificities. • Allow final customers to sell the electricity produced on the market: finalcustomers should have access to real-time production and consumption data. Thisinformation should be made available to a third party acting on their behalf in order todevelop the role of energy aggregators.• Maximise savings on the electricity bill: these will be directly linked to the avoidedcost of electricity by using the PV power produced on-site. Regulatory frameworksshould therefore promote net-metering and self-consumption schemes. In addition,electricity tariffs designed for time-dependent charges will play an important role,together with new technologies enabling more on-site consumption.In the utility-scale segment (generation value competitiveness), the framework market conditions will play a key role in drivinginvestments in PV. The goals should be to:• Facilitate access to capital by lowering the perceived risk.• Emphasise the long-term stability of policies and the availability of sizeableunconstrained volume for deployment combined with access to financial instrumentsand financing funds.