Technology Status - NET Nowak Energie & Technologie AG

Technology and Technological Developments
Some renewable electricity technologies have already gained a significant
market share and their industry is relatively mature, although they may be far
from having fully developed their world-wide potential. For example, small
hydropower (SHP) is well-established, as are some segments of the biomass
industry. According to the most common definitions, global installed
capacity in 2000 was 32 GW and 37 GW, respectively. Geothermal,
accounting for 8 GW installed capacity in 2000, has been successfully
producing electricity in favoured locations for almost a century and is
regaining more attention including in developing countries. Wind energy has
been going through vigorous technological and market development and has
reached installed capacity of 30 GW in 2002, mostly in Germany (12 GW), US
(4.7 GW), Spain (4.1 GW), Denmark (2.9 GW) and India (1.7 GW). The solar
photovoltaic market, with 1.1 GW installed capacity in 2000, is still
comparatively small, but tripled its volume in the last four years.
Concentrating solar power (CSP) technology, despite the technological
success of the first commercial experience in the late 1980s, was not able to
sustain its market, due to the withdrawal of policy supports. Recent
technological development, along with re-kindled government interest,
offers the promise of a new start.
Technology development brings major innovative progress in materials,
processes, designs and products. In Figure 2, the top illustration shows the
increase of rotor diameter size and capacity of wind turbines, graphically
demonstrating that technology’s progress. The lower illustration shows
different solar cell technologies with various technology development
improvements including efficiency and costs. Technological developments are
key to the prospects for each renewable technology discussed in this study.
● Cost Reduction Opportunities
Reducing costs through technology development focuses on the unique
situations of each renewable energy technology and application. By
specifically targeting areas of cost reduction opportunities (see Table 1) and
by keeping the larger “virtuous cycle” in mind, policy makers can keep the
costs of facilitating market and technology learning to a minimum.
The technology “learning curves” presented in this book translate the
complex relationships among technology, industry and market into a curve
of declining costs. However, these curves only interpret the input and output
of the learning system; they do not explain the process going on within it.
EXECUTIVE SUMMARY
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