05 Sep '13, 1pm

The economic and political consequences of the last 10 years of renewable energy development

The economic and political consequences of the last 10 years of renewable energy development

one of the true arguments is that the cost of supporting solar PV has become larger than expected and faster than expected. Just 5 years ago, a number of countries had tariffs in the 500-600 EUR/MWh range, and regulators were surprised by the volumes that managed to be installed - and capture the advantageous prices levels. when they dropped the price support for new projects, they were again surprised by how fast the industry was able to match the lower prices through new technology (and a brutal price war). The result has been an amazing drop in the price of solar panels (-80% in just a few years, as shown above), bringing them close to grid parity, and a rather large (multiple GWs in Germany, Italy, Spain) stock of solar PV capacity which is entitled to very high tariffs for many years, at a visible cost to consumers; in some places, the regulatory regime allowed produc...

Full article: http://www.theoildrum.com/node/10227

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