ArabianBusiness.com - Middle East Business News
Friday, 27 November 2009 07:17 UAE time

YOUR DIRECTORY /

| Share |

Solar solution

by Wissam Yaacoub on Sunday, 05 August 2007
AFP/Getty Images.

The demand for electricity is dramatically increasing in many parts of the world. The estimated global growth of electricity consumption is 2.7% per year; in the Middle East, annual increases are expected to average about 3% until 2030.

As environmental issues squeeze the conventional development of electricity supply systems based on hydrocarbon fuels, alternative sources of energy are becoming mature enough to acquire high shares of the market. In recent years there have been important advancements in both the research and use of renewable energy. Solar energy is currently a US $11 billion (AED40 billion) worldwide market and interest in this sector is increasing in many areas of the world, especially those where sunshine is abundant, such as the Gulf region.

Methods to convert solar energy to electricity have been developing over many decades and the research of Lebanese inventor Hassan Kamel Al-Sabbah who died in New York in 1935 is proof of how old this dream is. Today things are starting to look much brighter for the solar power sector and the list of projects being undertaken throughout the world is growing.

Story continues below
advertisement

Huge solar power plants are now being developed in Europe and the United States of America (USA). The European Commission (EC) foresees at least 1GWe implemented in Europe by the year 2010 and after this year, the World Bank (WB) predicts a cost reduction in the production of solar power to below 6 US cents/kWh, which is very promising for its future use.

The difference between projects supported by the EC and those supported by the WB is that the EC only sponsors pure solar plants, whereas the WB focuses on the integration of solar into combined-cycle plants in sunny, developing countries. In addition to governments and international development agencies, private investors and commercial lenders are slowly beginning to see the opportunities of solar power.

There are three major factors currently stimulating investments in solar power:

Rising fuel costs - with over 80% of today's energy produced from fossil fuels, high oil and gas prices are making renewable energy more competitive in the power market;

Environmental concerns - a byproduct of burning fossil fuels is carbon dioxide, perhaps the greatest contributor to global warming. Fears about this phenomenon have triggered public and political demands for renewable energy;

Engineering advances - in 1980 the cost of generating solar power with silicon cells was around US $30/W (AED110/W), today it averages $3-4/W. New technology currently being applied is expected to bring the cost down to below $1/W.

Solar technologies

Several different technologies are now available for the harnessing of solar power. The most developed of these are:

• Parabolic trough solar electric generating system (SEGS);

• Central receivers power plant;

• Solar pond power plant;

• Photovoltaic technology;

The first three of these come under the banner of solar thermal (ST) technology. In general, they use a collector to convert sunlight into heat energy. Photovoltaic (PV) technology turns sunlight directly into electricity by means of absorbent semiconductors. In both cases, solar energy has been confirmed as a reliable and proven technology for producing clean energy.


| Share |


READERS' COMMENTS

Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.

Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

From  Current Issue

SHARE PRICE CHECK

RELATED LINKS

  1. Abu Dhabi Future Energy Company (ADFEC)»
  2. World Bank»

 EMAIL ALERTS

  1. Abu Dhabi Future Energy Company (ADFEC)

  2. Thermo LLC - Dubai

  3. World Bank

  4. Construction & Industry


CURRENCY CONVERTOR

Tell us your story

READER COMMENTS

  1. Deal sought on Dubai World, Nakheel debts 19
    26 Nov ' 09 at 20:13
    Red Devil/Sandjocky, I have also had several posts blocked over the past couple of days, posts that speak of the facts only as they...   More  »
  2. UAE real estate market has now hit bottom - analysts 05
    26 Nov ' 09 at 21:36
    Comn' AB is a yo-yo when it comes to news.People forecasting good and then bad. Good and bad and then some more "experts" saying...   More  »
  3. Moody's cuts Dubai GRI ratings amid debt delay 02
    26 Nov ' 09 at 19:51
    Dubai World better change its slogan & reposition itself - Dubai LTD.   More  »

Read all user comments >

Gitex 2009

MORE FROM ARABIANBUSINESS.COM