Technology Status - NET Nowak Energie & Technologie AG
Technology Status - NET Nowak Energie & Technologie AG
Technology Status - NET Nowak Energie & Technologie AG
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then at its best, and renewable power – even without adding environmental<br />
or other values that could be attributed to certain kinds of renewable<br />
electricity generation – can compete on the wholesale electricity market.<br />
Figure 3<br />
Cost Competitiveness of Selected Renewable Power <strong>Technologie</strong>s.<br />
Small-hydro<br />
Solar<br />
photovoltaics<br />
Concentrating<br />
solar<br />
Biomass<br />
Geothermal<br />
Wind<br />
Wholesale<br />
power p<br />
price<br />
Retail<br />
consumer<br />
power p<br />
price<br />
10 20 30 40 50<br />
Power generation costs in USD cents/ s kWh<br />
Note: Cost calculation is based on system investment needed (capital cost is based on discount rate of 6% and<br />
amortisation period of 15 - 25 years) and power output. Lowest cost range refers to optimum conditions (proven<br />
technology, optimised plant size and design, and high availability of system and resources).<br />
Source: <strong>NET</strong> Ltd. Switzerland.<br />
Solar technologies are, for the time being, generally not competitive with<br />
wholesale electricity, but even they start to compete with retail electricity in<br />
certain circumstances where supportive policy frameworks have been<br />
established. For instance, photovoltaic solar power is competitive in areas<br />
where high solar irradiation coincides with daily (peak) power demand, and<br />
high retail electricity costs, in a supportive policy environment. California and<br />
other parts of the Southwest United States are examples of such conditions,<br />
and such areas have become strong commercial markets.<br />
● Market Prospects<br />
Based on current market levels and expected cost reductions, market growth<br />
for all six renewable technologies for 2010 is forecast to increase from 95.5<br />
GW to 257 GW, or 10.4% p.a. This forecast assumes continued government<br />
support and that no outside factors will significantly alter the competitive<br />
environment.<br />
EXECUTIVE SUMMARY X