The population of the world continues to grow, as does the average
standard of living, increasing demand for food, water and energy and placing
increasing pressure on the environment. The population of the world doubled
from 3.2 billion in 1962 to 6.4 billion in 2005 and is forecast to grow to 9.2
billion in 2050.
Supplies of oil, gas, coal and uranium are forecast to peak as reserves
are depleted. At the same time, fear of climate change is putting pressure on
the energy sector to move away from carbon burning to nuclear, solar and other
environmentally friendly energy sources.
Solar energy involves tapping the energy of the sun to produce heat,
usually hot water, or electricity, either via photovoltaic devices or
generators powered by solar collection systems. To give an idea of the
potential of solar energy, South Africa, with one of the highest levels of
solar radiation in the world, receives between 1450 and 1950 KWh/m2 per year,
compared to Europe with 910 KWh/m2.
In 2005, global solar markets reached US$ 11.8 billion, up 55% on 2004.
Solar installations are expected to provide 15 GW in 2010 versus 2.7 GW in
2006. In April 2007, Photon Consulting forecast 2010 revenues from sales of
solar energy equipment of US$ 90 billion, up from US$ 20 billion in 2006.
Demand for silicon for solar cells is expected to increase from 41,000 tonnes
in 2006 to 120,000 tonnes in 2010 and 400,000 tonnes in 2015.
The EC estimates the cost per MWh for solar (Euro 150 to 450) versus
coal (45 to 55). The kg CO2 equivalent per MWh is solar (100) versus coal (750
to 800).
In January 2006, the California Public Utilities Commission (CPUC)
approved the largest funding initiative in the US solar energy's history: the
California Solar Initiative (CSI). The initiative creates a $US 3.3 billion,
ten-year program to put solar on a million roofs in the state. California has
set a goal to create 3000 MW of new, solar-produced electricity by 2017.
The installed capacity of Spanish solar panels is expected to reach 500
MW by end 2008 and twice that by end 2010, providing 1% of capacity.
Abengoa Solar operates the world's first Concentrating Solar Power (CSP)
plant in Spain. The company is building a 280 MW solar plant, the world's
largest, at Gila Bend, Arizona, to be operational in 2011. The company is also
building three more CSP plants, joint capacity 120 MW, two 50 MW trough plants
and one 20 MW tower plant, all in Spain, as well as hybrid gas-solar plants in
Algeria and Morocco.
In April 2007, Photon Consulting forecast 2010 revenues from sales of
solar energy equipment of US$ 90 billion, up from US$ 20 billion in 2006.
Demand for silicon for solar cells is expected to increase from 41,000 tonnes
in 2006 to 120,000 tonnes in 2010 and 400,000 tonnes in 2015.
Shortages of poly-crystalline silicon are hampering the development of
solar energy facilities. In September 2007, UBS analysts predicted Asian and
European production of polysilicon for making solar cells could quadruple.
China is expected to raise its share of production from 1.6% in 2006 to 25% in
2010.
