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Technology Status - NET Nowak Energie & Technologie AG

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20<br />

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

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