|
AltAssets is the private equity news and research service from Almeida Capital
|
FREE newsletter RSS
INTELLIGENCE
RECRUITMENT
KNOWLEDGE BANK
EVENTS
SECTOR ANALYSIS
HEDGE FUNDS
|
PRINT THIS PAGE Solar electricity brief: rays of hope?
10/04/2006. Source:Augusta & Co Merchant Bankers. James Sproule
As carbon energy prices climb ever higher, interest in renewables is gaining increasing momentum. Not only do higher carbon fuel prices make renewables more viable economically, they also address an increasing concern over energy security. This paper sets out the economics of solar electricity generation. We have taken a critical and analytical view on the economics and prospects for solar electricity generation.
Concentrated Solar Power (CSP) has run effectively for over 20 years in the western United States and new facilities are being built there and in Spain. These systems can be scaled to 200 MW and costs are already approaching €100/MWh: moreover they can effectively run through the night and intervals of cloud cover.
For solar photo voltaic electricity, the key to better economics will be the ability to lower manufacturing costs and increase the rate at which the next generation of solar cells convert sunshine into electricity. The first requirement requires greater economies of scale, the second requires further technical progress.
Financial modelling reveals that even under optimistic scenarios, solar PV will continue to require a significantly greater degree of subsidy than other forms of renewable energy to attract investors. Germany leads Europe in the deployment and development of solar PV. Popularity of green issues generally and the generosity of its feed in tariffs of €457 - €624/MWh have resulted in a significant investment in solar PV energy.
Click here to download the full article (pdf 142kb)You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
Augusta & Co. plc is an independent merchant bank providing corporate finance and capital markets advice and services to European middle market companies. For more information, visit www.augustaco.com.
|
 
|
|
|
