Getting closer
Solar – the most elegant method of producing electricity – has not been viable in comparison to other alternatives. Comparing the total cost – considering construction, operation and decommissioning, it has been twice as expensive as the nearest alternative – natural gas and three times as much as hydro and nuclear. However, hydro is location specific and nuclear has significant tail risk in the storage of spent fuel that is not fully considered.
Ref: Comparing Energy Costs of Nuclear, Coal, Gas, Wind and Solar, By Jason Morgan | Published April 2, 2010
Solar, albeit being the cleanest production method, has been priced out of the market, thus far. The only reason, solar plants are seen around the world is subsidy – both for the manufacturing of solar panels in countries such as China and for the construction of solar plants in countries such as Germany and the US. Developing countries have recently initiated subsidy schemes similar to what exist elsewhere.
Subsidies, for the manufacture of solar panels using traditional methods and for the construction of plants that destroy economic value, are not a way to solve this problem. More R&D is needed for process innovation that will reduce the cost of manufacturing and improve efficiency of plants. Recent research (1) has made the prevailing idea of embedding quantum dots into the solar panel more practical, extracting an additional 50% efficiency in production. Another 50% in manufacturing process efficiency, will bring solar to be in direct contention with natural gas. With societal costs fully considered, solar will then become the natural and uncontested option.
Energy policy is complex and it requires the consideration of available resources, portfolio of production assets and consumption patterns and emerging trends in technology. Policies that dole out blind subsidies are never good. Production and manufacturing subsidies are tactical band aids. What is needed are policies that strategically and holistically solve the energy problem by R&D, making solar an economically viable option.
(1) In solar cells, tweaking the tiniest of parts yields big jump in efficiency. Published: Saturday, January 21, 2012 – 00:35 in Physics & Chemistry. Source: University at Buffalo
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