A Review of Solar Energy: Markets, Economics and Policies
Govinda R. Timilsina
World Bank - Development Research Group
affiliation not provided to SSRN
Patrick A. Narbel
Norwegian School of Economics (NHH)
October 1, 2011
World Bank Policy Research Working Paper No. 5845
Solar energy has experienced phenomenal growth in recent years due to both technological improvements resulting in cost reductions and government policies supportive of renewable energy development and utilization. This study analyzes the technical, economic and policy aspects of solar energy developmentand deployment. While the cost of solar energy has declined rapidly in the recent past, it still remains much higher than the cost of conventional energy technologies. Like other renewable energy technologies, solar energy benefits from fiscal and regulatory incentives and mandates, including tax credits and exemptions, feed-in-tariff, preferential interest rates, renewable portfolio standards and voluntary green power programs in many countries. Potential expansion of carbon credit markets also would provide additional incentives to solar energy deployment; however, the scale of incentives provided by the existing carbon market instruments, such as the Clean Development Mechanism of the Kyoto Protocol, is limited. Despite the huge technical potential, development and large-scale, market-driven deployment of solar energy technologies world-wide still has to overcome a number of technical and financial barriers. Unless these barriers are overcome, maintaining and increasing electricity supplies from solar energy will require continuation of potentially costly policy supports.
Number of Pages in PDF File: 51
Keywords: Energy Production and Transportation, Climate Change Mitigation and Green House Gases, Environment and Energy Efficiency, Energy and Environment, Renewable Energyworking papers series
Date posted: October 18, 2011
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