Wednesday, June 15, 2016

The Race to Solar Dominance

By Sage Ertman, Policy Intern
Source: NREL.gov

A Charged Debate post by Tyler Johnson in March addressed an issue the United States has with India’s 2010 resolution to reach 20 GW (20,000 MW) of total solar energy generation capacity by 2022. Under this resolution, India explicitly plans to use specific domestically made parts in certain situations, which the U.S. argues discriminates against foreign producers in violation of the General Agreement on Tariffs and Trade (the GATT) and Article 2.1 of the Agreement on Trade-Related Investment Measures (TRIMs). This post will instead touch on the world’s race to solar dominance and how more countries are beginning to reach for increasingly ambitious solar energy goals.

Though India is likely to surpass its initial goal (13 GW of capacity are currently under construction with another 9 GW proposed and awaiting approval), in June of 2015, India’s Prime Minister, Narendra Modi, gave approval to increase its solar target five-fold from 20 GW to 100 GW (or 100,000 MW) by 2022. However, this goal might prove to be a little too ambitious, according to Bridge to India, the leading consultancy and knowledge services provider in the Indian renewable market. In its 2015 release of the India Solar Handbook, an annual market report providing a reliable and comprehensive source of data on India’s solar market, industry analysts estimated that India may only achieve 35-38 GW in solar capacity by 2022. Regardless of the program’s success, India is clearly taking steps in the right direction and is even the proud home of the world’s first fully solar powered airport. These strides toward a sustainable future will hopefully inspire and motivate others to join the renewable energy movement.

Luckily, India is not the only country with its sight set on the sun. Chile’s central power grid has more than quadrupled its solar capacity to 770 MW since 2013. Although this pales in comparison to India’s proposed plans even with another 1.4 GW expected to be installed in Chile this year, that does not change the fact that Chile is producing solar energy so far beyond its demand in certain areas that they are giving it away for free. That’s right. Spot prices in parts of the country reached absolute zero for parts of both this year and last. Chile has 29 solar farms online with 15 more on the way. Unfortunately, increased investment in solar energy alongside a reduction in Chile’s economic growth has led to regions being oversupplied with power.

Chile faces two big problems in the wake of this expansion. First, it operates on two main power networks, a central grid and a northern grid. Not only are the grids not connected, such that a surplus of power in one region cannot be used to supply the other, but there are numerous areas where congestion in the grids has caused power transmission lines to collapse. Chile is working to address this issue and has plans to build a link between the two grids as well as additional transmission lines to mitigate the congestion points. The second problem it faces is that while this expansion is ideal for consumers and the environment, companies that operate power plants are struggling to generate revenue since their product is selling for free. This means investors are losing money. According to Rodrigo Violic, head of project finance at Banco Bice, a Chilean lender, this issue will likely limit future development since uncertain revenue means banks will be reluctant to finance new power plants.

Shifting gears, in the middle east the Dubai Water and Electricity Authority (DEWA) recently launched the world’s largest concentrated solar power project. Morocco was hoping to hold the world record; however, currently its $9 billion three-phase concentrated solar power project will ultimately only yield an estimated 580 MW of solar capacity. While this capacity is staggering on its own and is estimated to be able to provide electricity for over a million people, Dubai has even more ambitious goals. Under Dubai’s clean energy strategy, the country hopes to obtain 7% of its total power output from clean energy by 2020, 25% by 2030, and 75% by 2050. This new concentrated solar plant should help immensely given its goal of reaching 1,000 MW (1 GW) of solar capacity by 2020 and 5,000 MW (5 GW) by 2030. Whether or not this endeavor meets its mark, these levels are unprecedented and should have everyone in the
clean energy community excited for what the next big project holds.





29 comments:

  1. Hi admin,
    I read your blog, its really awesome,
    I am watching your web. I have also a site related to you.
    Finding the right cleaning service can be a blessing for you and your family. Unfortunately there are so many that it can become a daunting task. These tips should help in assuring you make the right choice,

    cleaning services company


    Your regards
    Carla Pratt

    ReplyDelete
  2. Nice stuff dear. I found something related to solar. Check it Residential solar power system & Australian solar panels

    ReplyDelete
  3. We studied your blog and it is very nice. We found it really interesting. We like your blog and would like to visit it again. The Renewable Energy Hub provides Solar Panels at Reasonable prices. Visit our page for more information.

    ReplyDelete
  4. Solar Energy consumption is costlier these days but government has announced subsides and tax deduction schemes.

    ReplyDelete
  5. Im no expert, but I believe you just made an excellent point. You certainly fully understand what youre speaking about, and I can truly get behind that. contractor los angeles

    ReplyDelete
  6. I totally agree with this article.But I think it's always better to go with green.Anyways am planning to install a solar panel in my home.

    Solar energy providers

    ReplyDelete
  7. This is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work. Zonnepanelen

    ReplyDelete
  8. I would like to say that this blog really convinced me to do it! Thanks, very good post. Installateur zonnepanelen

    ReplyDelete
  9. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work!. Zonnepanelen

    ReplyDelete
  10. I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon… Zonnepanelen

    ReplyDelete
  11. Really appreciate this wonderful post that you have provided for us.Great site and a great topic as well i really get amazed to read this. Its really good. Zonnepanelen

    ReplyDelete
  12. I am impressed. I don't think Ive met anyone who knows as much about this subject as you do. You are truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog you have got here. Zonnepanelen

    ReplyDelete
  13. I have been searching to find a comfort or effective procedure to complete this process and I think this is the most suitable way to do it effectively. Zonnepanelen installateur

    ReplyDelete
  14. I was just browsing through the internet looking for some information and came across your blog. I am impressed by the information that you have on this blog. It shows how well you understand this subject. Bookmarked this page, will come back for more. Zonnepanelen installateur
    I was just browsing through the internet looking for some information and came across your blog. I am impressed by the information that you have on this blog. It shows how well you understand this subject. Bookmarked this page, will come back for more. Zonnepanelen installateur

    ReplyDelete
  15. Those utilizing elective wellsprings of vitality, for example, solar boards had the capacity to profit by their autonomy from the framework. Zonnepanelen

    ReplyDelete
  16. I want to say thanks to you. I have bookmark your site for future updates. Zonnepanelen

    ReplyDelete
  17. Really impressed! Everything is very open and very clear clarification of issues. It contains truly facts. Your website is very valuable. Thanks for sharing. Zonnepanelen

    ReplyDelete
  18. Thanks for the best blog. it was very useful for me.keep sharing such ideas in the future as well. Zonnepanelen

    ReplyDelete
  19. I will really appreciate the writer's choice for choosing this excellent article appropriate to my matter.Here is deep description about the article matter which helped me more. Zonnepanelen kopen

    ReplyDelete
  20. I have a mission that I’m just now working on, and I have been at the look out for such information Installateur zonnepanelen

    ReplyDelete
  21. The material and aggregation is excellent and telltale as comfortably. SEO

    ReplyDelete
  22. This is highly informatics, crisp and clear. I think that everything has been described in systematic manner so that reader could get maximum information and learn many things. Zonnepanelen kopen

    ReplyDelete
  23. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. ถุงผาดิบ

    ReplyDelete
  24. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. ติดตั้งโซล่าเซลล์

    ReplyDelete
  25. What an informative post on solar energy! It's cool and remarkable presentation. I got surprised for the way the author has dropped all the data gradually. It's amazing. I am sure I have to get back here very often to collect some qualitative reads. Solar roof

    ReplyDelete
  26. Nice stuff dear. Thanks for sharing it. If you are looking for solar panel please Compare Solar Quote from here for best price.

    ReplyDelete
  27. I’m glad to read your blog! I would like to thank you for sharing this amazing piece of content with us. Here I’m sharing you the best solar quotation , for highly efficient & durable solar panels in Australia.

    ReplyDelete