Eicke2022 Chapter Solar Power Generation
Eicke2022 Chapter Solar Power Generation
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1 Introduction
In less than two hours, enough sunlight strikes the earth to satisfy the world
economies’ annual energy demand. Despite this abundance of solar energy, the
conversion of sunlight into usable energy forms only represents a tiny fraction
of today’s global energy supply. Yet, the share of solar energy in global energy
supply, especially in the electricity sector, is rising rapidly. Unprecedented
deployment has taken place in the last decade, stimulated by efforts to improve
energy access, security of supply and mitigate climate change. Between 2010
and 2017, the global installed capacity of solar generation increased more than
L. Eicke (*)
Harvard Kennedy School, Harvard University, Boston, MA, USA
Institute for Advanced Sustainability Studies (IASS), Potsdam, Germany
Universität Erfurt, Erfurt, Germany
e-mail: [email protected]
A. Eicke
Hertie School, Berlin, Germany
e-mail: [email protected]
M. Hafner
SciencesPo—Paris School of International Affairs, Paris, France
Johns Hopkins University SAIS Europe, Bologna, Italy
Fondazione Eni Enrico Mattei (FEEM), Milan, Italy
e-mail: [email protected]
250
200
Solar generation in TWh
Asia
Europe
150
North America
Oceania
100
Latin America
50 Africa
Middle East
0
2004
2000
2001
2002
2003
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Fig. 9.1 Power generation from solar energy by region (in TWh). (Authors’ own
elaboration, data from IRENA 2020)
tenfold from 34 GW to 437 GW (IRENA 2020). Steep learning curves and the
economies of scale enabled technological improvements and, in consequence,
have led to massive cost reductions.
Solar photovoltaics (PV), the conversion of light into electricity using semi-
conducting materials, were one of the most expensive electricity-generating
technologies when first employed in astronautics in the late 1950s. By 2020, it
has become an economically viable energy source for many applications. An
alternative technical process to generate electricity from solar radiation is con-
centrated solar power (CSP). Yet, the latter, accounted for less than 3% of all
solar power in global electricity generation in 2017 (IRENA 2020).
PV is the third most important renewable energy source in terms of global
capacity after hydro and wind power. Globally, solar energy is mostly used in Asia,
Europe and North America with the strongest rise in Asia, mostly driven by
China and India (Fig. 9.1). According the World Energy Outlook of the
International Energy Agency, solar PV may become the largest technology in
terms of global installed capacity in the Stated Policies Scenario by 2035 (IEA 2019).
2.1 Solar PV
The main components of photovoltaic cells are semiconducting materials such
as silicon and germanium. In these materials, sunlight releases charge carriers
(electrons), which create an electrical field. As source of electricity generation,
9 SOLAR POWER GENERATION 159
this field induces a direct electrical current. This process is known as the pho-
tovoltaic effect. Electricity generation exploiting this effect is not only possible
from direct sunlight, but also from its diffuse components, implying that PV
cells also generate electricity with cloudy skies.
Photovoltaic cells are integrated in solar arrays. Inverters (to invert DC cur-
rent from solar panels into AC), transformers, electrical protection devices,
wiring and monitoring equipment are summarized as balance of system (BOS).
In some cases, BOS also includes sun-tracking systems, which increase the yield
by positioning the panels towards the sun.
The three major types of solar PV technology are monocrystalline cells,
polycrystalline cells and thin firm cells, of which the first two make up more
than 95% of global module production (Fraunhofer ISE 2019).
Monocrystalline solar cells have the highest efficiency rates, typically 15–20%
but the highest quality panels can reach up to 23% efficiency. As for all solar
panels, the efficiency of monocrystalline panels depends on ambient tempera-
ture. On average, efficiency declines by about 10% when the ambient tempera-
ture rises by 25 °C (Quaschning 2019). Featuring high efficiencies,
monocrystalline solar panels are space efficient, i.e. they require smaller ground
areas to generate the same amount of electricity compared to other technolo-
gies. They also live the longest with most manufacturers putting a 25-year war-
ranty on monocrystalline solar panels. Their main disadvantage is the high cost,
because manufacturing requires the highest-grade silicon.
Polycrystalline silicon cells are cheaper because of a simpler production pro-
cess and the amount of waste silicon is less compared to monocrystalline cells.
The efficiency of these panels is typically lower (13–16%). They also have a
slightly lower heat tolerance, which means that polycrystalline perform slightly
worse in high temperatures than monocrystalline panels.
Thin film solar cells deposit one or several thin layers of photovoltaic mate-
rial onto a substrate. Most thin-film modules have efficiencies of around 9–11%.
Their mass production makes them cheaper than crystalline based solar cells.
Thin film solar panels are mostly used in applications where panel sizes are not
an issue. Another advantage is that they can be more easily integrated into
facades and roofs.
When comparing efficiencies, it is important to differentiate between effi-
ciencies of single cells, of panels and of the entire installation including con-
verter and transformer. In the last 10 years, the efficiency of average commercial
silicon modules increased from about 12% to 17% (Fraunhofer ISE 2019). Lab
cell efficiencies of close to 50% when concentrating light rays and applying new
materials demonstrate the potential for further efficiency increases at the pro-
duction level (Geisz et al. 2020).
Fig. 9.2 Concentrated solar power technologies. (Source: Qader and Stückrad 2016)
conventional power plants, the thermal energy then drives a turbine to gener-
ate electricity. A downside of the CSP technology is that direct radiation is
required for the process, because diffuse radiation cannot be focused. CSP
plans are therefore mostly sited in countries with high direct radiation and a
dry climate (see section on solar potential), for example, in northern Africa and
the Middle East.
One major advantage of the CSP technology compared to solar PV is that
heat can be stored at comparatively low cost. Equipped with molten salt vessels
as thermal energy storage, most CSP plants have a steadier generation profile
during the day and extend electricity generation long beyond sunset.
The four main construction types of CSP plants are solar towers, parabolic
troughs, linear Fresnel reflectors and small-scale dish engines (Fig. 9.2).
Parabolic trough and solar tower CSP plants are the most mature CSP tech-
nologies and lead new installations by far (REN21 2019).
CSP technologies can be grouped into point concentration systems (solar
towers and dish engines), and linear concentration systems (parabolic troughs
and linear Fresnel reflectors). Technologies based on point concentration sys-
tems achieve higher temperatures (up to 1200 °C) than linear concentration
technologies (300–550 °C), and thus yield higher thermal efficiencies.
However, focusing a large number of mirrors on a single point is highly com-
plex and leads to high construction and maintenance costs. By contrast, linear
concentration technologies require less land than point concentration systems.
Parabolic troughs and tower systems have first been built commercially in
the 1980s. Whereas learning potentials in well-developed, mature steam
9 SOLAR POWER GENERATION 161
14000
12000
Total installation costs (USD/kW)
10000
8000
6000
4000
2000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Fig. 9.3 Development of installation costs for solar PV and CSP. (Authors’ own elab-
oration, data from IRENA 2020)
9 SOLAR POWER GENERATION 163
account for the highest cost shares. The three main factors driving the cost
reductions of PV cells were (i) increasing sizes of manufacturing plants (econo-
mies of scale), (ii) improved module efficiency (technological advances), and
(iii) a decline in costs of purified silicon. A high share of the recent cost reduc-
tions can be traced back to the rapid expansion of cell manufacturing in China,
where about 70% of all PV modules are produced (Fraunhofer ISE 2019). Due
to the modularity of PV panels, long distance transportation of the panels is
easier than for most other generation technologies, such as, for example, blades
and towers of wind turbines, which are usually manufactured locally. The mar-
ket for solar panels is therefore a global market, characterized by large-scale
manufacturing sites and high competition with cost-cutting effects.
The decline in balancing of system costs was led by inverter cost reductions.
While PV modules historically had the largest share in total cost, in 2020 the
overall BOS costs account for up to 40–60% of total PV investment costs
(IEA 2020b).
Similar to solar PV, high upfront capital investment costs are also a major
barrier for CSP technologies. They account for almost four fifth of the total
costs. Throughout the past decade, average installation costs of CSP plants
have been falling from 8800 USD/kWh in 2010 to 5,200 USD/kWh in 2018
(Fig. 9.3), albeit less constantly than they have been for solar PV. The uneven
trajectory can be explained by a much lower number of new installations and
an uneven buildout among countries. Until 2013, most capacity additions
occurred in Spain and the United States, incentivized by generous past incen-
tive schemes. But no new capacity has entered commercial operation in Spain
since 2013 and in the United States since 2015. Current capacity extensions
are led by China and Morocco (REN21 2019).
60%
50%
Capacity factor in %
40%
30%
20%
10%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Fig. 9.4 Capacity factors of solar PV and CSP. (Authors’ own elaboration, data from
IRENA 2020)
high fluid temperatures of solar power CSP plants are best suited for storage.
This technology has therefore the highest realized capacity factors of up to 70%
(IRENA 2020). Due to the extension with thermal storage, generation pat-
terns of CSP plants differ from solar PV. This flexibility provides an additional
value compared to the non-dispatchable solar PV (Pfenninger et al. 2014).
Because of its comparatively low capacity factors, the share of solar energy in
the generation mix of a country is usually lower than its share in terms of total
installed capacity. A second relevant effect resulting from its generation pattern
is the high concentration of solar energy generation in few hours of the day. In
these hours, most PV plants of an area generate electricity. The high simultane-
ous electricity supply of solar generation has a depressing effect on electricity
wholesale prices. In countries with high shares of solar energy, solar market
values are significantly lower than for other technologies, implying that reve-
nues from selling electricity from solar generation are, on average, lower than
average wholesale electricity prices (Hirth 2013). This effect is known as merit
order effect and it applies in particular to solar PV because its generation is
most concentrated in time.
Fig. 9.5 The geographical potential of solar energy. (Source: Global Solar Energy
Atlas 2019)
energy lies in the Atacama Desert in South America, the Sahara region, in the
Middle East, the Gobi desert in western China, Australia and the western part
of the United States. Solar irradiation in these areas is more than twice as
strong as in eastern China and most northern European countries where large
parts of global solar energy installations are located. Consequently, the electric-
ity output, and with it the electricity generation costs, varies by a factor of up
to two depending on the location.
CSP technologies are even more dependent on direct solar radiation than
Solar PV plants and need direct normal irradiance values of at least 1800 kilowatt-
hours per square meter per year. Their applicability is thus much more limited.
However, well suited conditions can be found on all continents, including
regions in south-western United States, the Middle East and North Africa,
South Africa, Australia, Mexico, Chile and Southern Europe.
In addition to daily patterns, solar generation features seasonal patterns,
especially at higher degrees of latitude, i.e. towards the poles. Close to the
equator, solar irradiance increases but also cloud cover tends to be higher. In
these areas, solar energy output remains relatively stable throughout the year;
the position of the sun varies less and the time of sunrise and sundown remain
similar.
9 SOLAR POWER GENERATION 167
8 Outlook
Unleashing the huge potential of solar energy will be key to achieve global
climate targets and to limit global warming (IRENA 2019a). Continuous pol-
icy support is thus granted in many countries around the globe. In addition to
support schemes, further cost declines and innovations drive the rapid
168 L. EICKE ET AL.
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