Solar Global
With the rising cost of fossil fuels and recent political problems, highlighting the precarious nature of Europe’s gas supplies, governments worldwide have made a concerted effort to encourage the move towards renewable, and in particular, solar energy. Also, the need to combat climate change and adhere to international climate targets has prompted a number of countries to establish coherent legislation designed to encourage investment in solar energy by making it financially viable compared to the cheaper option of fossil fuel electricity production.
Spain
In Spain, the Royal Decree of 2004 set out provisions for a feed-in tariff whereby the government guarantees a fixed rate for energy fed back into the grid by solar producers. In Spain the government also provides premium rates for kilowatts fed into the wholesale electricity market. This incentivisation protects investors over the long term and has been fundamental in the dramatic growth of solar energy in Spain. With its abundance of sunshine, Spain is now an extremely attractive country for solar investors and is now the fourth largest manufacturer of photovoltaic (PV) technology, the majority of which is exported to Germany.
In order to meets its target of producing 12 per cent of its energy from renewable sources by 2010, the Spanish government has overseen the construction of a number of large power stations, each capable of supplying electricity to large areas. These new plants now make Spain the world leader in terms of large scale electricity generation and have contributed to a wholesale change in the concept of energy generation in this part of the world. This new concept has often manifested itself in ingenious installations such as the 11MW PS10 solar power tower near Seville which will be capable of supplying electricity to large urban areas in and around Seville.
Germany
Germany, recently ranked by Ernst & Jones as the world’s most attractive prospect for solar investors has become the leading light of green energy. At a recent energy convention in Sydney, German delegates highlighted the growth and success of solar energy in that country in relation to their feed-in tariff legislation which jump-started investment in that sector. On a national level Germans have invested almost US$5 billion in solar energy and now have a photovoltaic electricity output of half a percent of all German electricity consumption.
Similarly to Spain, Germany are now operating a number of large scale solar energy power plants across the country. The Waldpolenz Solar Plant in Muldentalkreis has a peak capacity of 40MW, covering agricultural land and harnesses the sun’s rays using thin-film modules over a large area. It is believed that as other countries adopt government legislation based on the German feed-in tariff model, installations such as Waldpolenz will become as increasingly familiar sight around the world.
Australia
Australia, despite its obvious abundance of sunlight, until now has lagged behind Germany in terms of electricity output by means of photovoltaic energy. Less than 2% of energy in Australia is produced from solar power something which has generally been attributed to the economic unfeasibility of photovoltaic as a power source in that country. This inevitable disparity in the cost of fossil fuel kilowatts compared to renewable kilowatts has been offset in countries such as Spain and Germany by feed-in tariffs, designed to protect investors and help recover the initial expenses involved in photovoltaic technology.
Although a number of states have now introduced feed-in tariffs to attract investment, some have criticised them for not going far enough with the legislation. Despite certain legislative grey areas, there has been a remarkable change over the last ten years in public awareness of solar and indeed, the Australian government is acting. The proposed Victoria solar power plant will make it the worlds largest with a capacity of 154,000 kW and will harness concentrated solar energy.
