Technology Status - NET Nowak Energie & Technologie AG

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low as 3 USD cents per kWh. Once the high up-front capital costs are
written off (usually over 15 or 20 years), the plant can provide power at
even lower cost levels as such systems commonly run, without major
replacement costs, for 50 years or more. SHP plants have a particularly
long life time and relatively low operation and maintenance costs, though
many plants constructed in the last century can now benefit from
refurbishment. Support to exploit SHP should be given to developing
countries where it can be a very low cost option.
● Solar photovoltaic power is in the early stages of its development, but
can still be competitive in isolated off-grid markets and limited areas
where high levels of sunshine coincide with daily (peak) power demand.
For the latter market, solar PV power costs are in the range of retail utility
rates of about 20 USD cents per kWh. In such circumstances, e.g.,
California, photovoltaics has become competitive with retail electricity, at
least as stand-by power and in “building-integrated applications” (BIPV).
In the sunnier locations of Europe, the attractiveness of solar PV in the
short to medium term continues to depend on incentives. In Japan, a
system cost level of USD 3,000 could be reached in the next four to six
years, a “docking point” (competitive with retail electricity) to selfsustained
markets. Of particular interest in Japan are building-integrated
solar systems – installed at the point of electricity consumption with
panels that are easy to install. The other key market for solar PV is the offgrid
market for rural areas, including industrial and agricultural uses in
developed countries, and rural systems in developing countries. The
challenge of delivering affordable energy in developing countries is
immense. In these circumstances the primary focus should be on
“productive uses” for such income-generating activities as water
pumping, refrigeration, lighting and other uses that improve the
economic welfare of rural communities.
● Concentrating solar power is limited in its competitive market potential
to arid and semi-arid areas with strong “direct gain” solar radiation. The
cost of concentrating solar power generated with up-to-date technology
is estimated to be between 10 to 15 USD cents per kWh, with good longterm
cost reduction potential. CSP plants can also be “hybridised” in
combination with a thermal generator to improve marketability (solar
share of power plant) and dispatch-ability (power production on
demand).
● Where bio-feedstocks are abundant and their pre-treatment
requirements are modest, biopower costs can be as low as 3 USD cents
EXECUTIVE SUMMARY X