Download the PDF - Global Solar Technology
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Analyst Buzz<br />
However, <strong>the</strong> potential of solar energy<br />
is enormous and, on a practical basis<br />
is >600 TW. Photosyn<strong>the</strong>sis alone can<br />
provide 90 TW of energy resources.<br />
The sun delivers more energy to <strong>the</strong><br />
earth in one hour than civilization currently<br />
uses from fossil fuels, nuclear power and<br />
all renewable energy sources combined in<br />
a year. This solar energy can be captured<br />
and stored directly in <strong>the</strong> chemical bonds<br />
of a material, or fuel, and <strong>the</strong>n used when<br />
needed. These chemical fuels, in which<br />
energy from <strong>the</strong> sun has deliberately been<br />
stored, are called solar fuels.<br />
For more than 50 years, scientists have<br />
pursued <strong>the</strong> possibility of producing solar<br />
fuels in <strong>the</strong> laboratory. There are three<br />
approaches:<br />
• Artificial photosyn<strong>the</strong>sis in which<br />
systems made by human beings<br />
mimic <strong>the</strong> natural process;<br />
• Natural photosyn<strong>the</strong>sis; and<br />
• Thermochemical approaches.<br />
Significant progress has been made<br />
in producing two very important types of<br />
fuels:<br />
• Hydrogen, which can be used as a<br />
transport fuel, and is an important<br />
feedstock for industry. Hydrogen<br />
can be produced by splitting water<br />
using sunlight.<br />
• Carbon-based fuels such as<br />
methane or carbon monoxide<br />
(used with hydrogen as syn<strong>the</strong>sis<br />
gas). These are key feedstocks for<br />
making a wide range of industrial<br />
products including fertilizers.<br />
The goal is to a transition to a hydrogenbased<br />
economy based on renewable energy<br />
sources, mainly solar. The main barriers<br />
to a transition to hydrogen are <strong>the</strong> lack of<br />
development of technologies for hydrogen<br />
production, storage, transport, and distribution,<br />
and high costs compared with <strong>the</strong><br />
current system.<br />
Ra<strong>the</strong>r than seeing hydrogen as <strong>the</strong><br />
exclusive fuel for <strong>the</strong> future, <strong>the</strong> specific<br />
roles to which it is uniquely suited in each<br />
major sector within an overall sustainable<br />
energy strategy need to be identified.<br />
With this approach, it is expected that<br />
hydrogen would still play a substantive and<br />
crucial role, but a role in concert ra<strong>the</strong>r<br />
than competition with that of electricity<br />
and technologies such as battery electric<br />
vehicles and a variety of shorter-term<br />
energy storage options for grid power.<br />
The potential resource constraints in<br />
a hydrogen economy based on renewable<br />
energy sources have been investigated. It is<br />
estimated that <strong>the</strong> primary energy requirements<br />
of a global economy in 2050 that<br />
were 2.5 times those in 2005 could be met<br />
entirely from potentially collectable solar<br />
radiation (80% of <strong>the</strong> total supply), wind<br />
power (15%) and o<strong>the</strong>r renewables (5%).<br />
The result would be no need for nuclear<br />
power or coal-fired power.<br />
Hundreds of organizations are<br />
currently doing scientific research on<br />
solar fuels and artificial photosyn<strong>the</strong>sis.<br />
A dozen European research partners,<br />
for example, form <strong>the</strong> <strong>Solar</strong>-H network,<br />
supported by <strong>the</strong> European Union. The<br />
US Dept. of Energy (DOE) Joint Center<br />
for Artificial Photosyn<strong>the</strong>sis (JCAP), led<br />
by <strong>the</strong> California Institute of <strong>Technology</strong><br />
(Caltech) and Lawrence Berkeley National<br />
Laboratory, has $122 million over 5 years<br />
to build a solar fuel system. Caltech and<br />
<strong>the</strong> Massachusetts Institute of <strong>Technology</strong><br />
have a large National Science Foundation<br />
(NSF) grant to improve photon capture<br />
and catalyst efficiency, while several<br />
Energy Frontier Research Centers funded<br />
by <strong>the</strong> US DOE are focused on <strong>Global</strong><br />
Artificial Photosyn<strong>the</strong>sis (GAP)-related<br />
endeavors. Japan has established an<br />
Artificial Photosyn<strong>the</strong>sis Group, based on<br />
<strong>the</strong> Catalysis Research Centre, Hokkaido<br />
University.<br />
Hydrogen currently is produced via<br />
steam methane reforming (SMR), which<br />
is <strong>the</strong> commercial process of choice, since<br />
it has <strong>the</strong> lowest production costs of<br />
around $1.00/kg H2. The ultimate goal is to<br />
produce hydrogen without SMR.<br />
The hydrogen market today is estimated<br />
at approximately USD35.9 billion.<br />
By 2023, it will be worth over USD55.2<br />
billion. Making cleaner petroleum fuels in<br />
refineries is currently <strong>the</strong> biggest application<br />
for hydrogen, followed by steel and<br />
chemicals.<br />
However, large-scale production of<br />
hydrogen via solar fuels would increase <strong>the</strong><br />
available market into <strong>the</strong> trillions of dollars<br />
and could result in a large-scale reduction<br />
in <strong>the</strong> use of petroleum fuels. <strong>Global</strong><br />
petroleum production in 2012 is estimated<br />
at approximately 4.5 billion tonnes, worth<br />
USD3.5 trillion.<br />
The world vehicle fleet in 2000 was<br />
700 million and may possibly reach 1500<br />
million by 2050. Replacement of fossil fuels<br />
by hydrogen would require production of<br />
about 260 billion kg/year.<br />
Four companies now control <strong>the</strong> global,<br />
outsourced hydrogen market. Air Liquide is<br />
estimated to be <strong>the</strong> leading supplier in 2012<br />
with a 37% market share. It was followed<br />
by Air Products (23%), Linde (19%) and<br />
Praxair (16%). Ano<strong>the</strong>r 190 companies<br />
have been identified as participants in <strong>the</strong><br />
hydrogen industry.<br />
220 GW of new distributed<br />
solar generation will be<br />
added by 2018, forecasts<br />
Navigant Research<br />
The global electric power industry is<br />
evolving from a financial and engineering<br />
model that relies on large centralized<br />
power plants owned by utilities to one<br />
that is more diverse, in terms of both <strong>the</strong><br />
sources of generation and <strong>the</strong> ownership<br />
of <strong>the</strong> generation assets. Distributed solar<br />
photovoltaic (PV) systems offer <strong>the</strong> benefit<br />
of producing electricity onsite, <strong>the</strong>reby<br />
reducing <strong>the</strong> need to build new transmission<br />
capacity and avoiding line losses.<br />
According to a new report from Navigant<br />
Research, 220 gigawatts of distributed solar<br />
PV capacity will be installed between 2013<br />
and 2018, representing $540 billion in<br />
revenue during this time.<br />
“Used in applications ranging from<br />
residential to small commercial to industrial<br />
settings, distributed solar generation<br />
offers significant benefits to consumers<br />
while adding resiliency to an electric grid<br />
evolving beyond <strong>the</strong> traditional centralized<br />
model,” said Dexter Gauntlett, research<br />
analyst with Navigant Research. “Though<br />
this market is still primarily driven by<br />
government incentives, distributed solar<br />
PV will continue its steady march toward<br />
grid parity in major markets over <strong>the</strong> next<br />
few years.”<br />
Even as distributed solar technologies<br />
have become more cost-effective, many<br />
governments are reining in popular feed-in<br />
tariffs in leading markets. The industry is<br />
fully aware that lucrative financial incentives<br />
will not be around forever. As a result,<br />
many companies are looking at 2017 (<strong>the</strong><br />
year after solar PV investment tax credits<br />
expire in <strong>the</strong> United States) as <strong>the</strong> year that<br />
solar PV will be able to stand on its own,<br />
without government support.<br />
The report, “Distributed <strong>Solar</strong> Energy<br />
Generation”, analyzes <strong>the</strong> global market<br />
for distributed solar PV systems less than<br />
1 megawatt in capacity and provides an<br />
assessment of <strong>the</strong> most important market<br />
drivers, technology trends, and challenges<br />
faced by <strong>the</strong> growing distributed solar PV<br />
industry. Forecasts for average installed<br />
prices and annual installations, segmented<br />
by region, extend through 2018. An<br />
Executive Summary of <strong>the</strong> report is available<br />
for free download on <strong>the</strong> Navigant<br />
Research website: navigantresearch.com.<br />
www.globalsolartechnology.com<br />
<strong>Global</strong> <strong>Solar</strong> & Alternative Energies – May/June 2013 – 33