Renewable energy variability is a problem for corporate buyers. But what is undesirable to buyers is attractive for insurance companies, whose core business revolves around managing weather-related risks. VFAs sit on top of a new or existing PPA and are effectively designed to pay the corporate buyer when they’re getting less renewable power than they contracted for, and give money to the insurer when there’s more.
From the end of 2004, worldwide renewable energy capacity grew at rates of 10–60% annually for many technologies. In 2015 global investment in renewables rose 5% to $285.9 billion, breaking the previous record of $278.5 billion in 2011. 2015 was also the first year that saw renewables, excluding large hydro, account for the majority of all new power capacity (134 GW, making up 53.6% of the total). Of the renewables total, wind accounted for 72 GW and solar photovoltaics 56 GW; both record-breaking numbers and sharply up from 2014 figures (49 GW and 45 GW respectively). In financial terms, solar made up 56% of total new investment and wind accounted for 38%.
Solar thermal power stations have been successfully operating in California commercially since the late 1980s, including the largest solar power plant of any kind, the 350 MW Solar Energy Generating Systems. Nevada Solar One is another 64MW plant which has recently opened. Other parabolic trough power plants being proposed are two 50MW plants in Spain, and a 100MW plant in Israel.
Renewable energy projects in many developing countries have demonstrated that renewable energy can directly contribute to poverty reduction by providing the energy needed for creating businesses and employment. Renewable energy technologies can also make indirect contributions to alleviating poverty by providing energy for cooking, space heating, and lighting. Renewable energy can also contribute to education, by providing electricity to schools.
“If the U.S. continues this kind of thing, I’m afraid the credibility of the number one leader country of the world may be in serious question,” Mr. Ban said. “We must have a global vision. It’s not the American economy. If the world economy is shaken by climate consequences do you think the American economy will be able to survive? We all sink together.”
The most common type of residential solar is called solar PV. The PV stands for “photovoltaic,” and a solar PV system is a electrical system that consists of solar panels, an inverter, a meter, and a few other components (mounting, cabling, etc.). A solar PV system requires little to no maintenance for years, and if you’re in a place with the right amount of sunlight, you can end up saving money, while also going green.
Solar power is produced by collecting sunlight and converting it into electricity. This is done by using solar panels, which are large flat panels made up of many individual solar cells. It is most often used in remote locations, although it is becoming more popular in urban areas as well. This page contains articles that explore advances in solar energy technology.
Geothermal energy is produced by tapping into the thermal energy created and stored within the earth. It arises from the radioactive decay of an isotope of potassium and other elements found in the Earth's crust. Geothermal energy can be obtained by drilling into the ground, very similar to oil exploration, and then it is carried by a heat-transfer fluid (e.g. water, brine or steam). Geothermal systems that are mainly dominated by water have the potential to provide greater benefits to the system and will generate more power. Within these liquid-dominated systems, there are possible concerns of subsidence and contamination of ground-water resources. Therefore, protection of ground-water resources is necessary in these systems. This means that careful reservoir production and engineering is necessary in liquid-dominated geothermal reservoir systems. Geothermal energy is considered sustainable because that thermal energy is constantly replenished. However, the science of geothermal energy generation is still young and developing economic viability. Several entities, such as the National Renewable Energy Laboratory and Sandia National Laboratories are conducting research toward the goal of establishing a proven science around geothermal energy. The International Centre for Geothermal Research (IGC), a German geosciences research organization, is largely focused on geothermal energy development research.
Although many older thermoelectric power plants with once-through cooling or cooling ponds use more water than CSP, meaning that more water passes through their systems, most of the cooling water returns to the water body available for other uses, and they consume less water by evaporation. For instance, the median coal power plant in the US with once-through cooling uses 36,350 gal/MWhr, but only 250 gal/MWhr (less than one percent) is lost through evaporation. Since the 1970s, the majority of US power plants have used recirculating systems such as cooling towers rather than once-through systems.
The political purpose of incentive policies for PV is to facilitate an initial small-scale deployment to begin to grow the industry, even where the cost of PV is significantly above grid parity, to allow the industry to achieve the economies of scale necessary to reach grid parity. The policies are implemented to promote national energy independence, high tech job creation and reduction of CO2 emissions. Three incentive mechanisms are often used in combination as investment subsidies: the authorities refund part of the cost of installation of the system, the electricity utility buys PV electricity from the producer under a multiyear contract at a guaranteed rate, and Solar Renewable Energy Certificates (SRECs)
The array of a photovoltaic power system, or PV system, produces direct current (DC) power which fluctuates with the sunlight's intensity. For practical use this usually requires conversion to certain desired voltages or alternating current (AC), through the use of inverters. Multiple solar cells are connected inside modules. Modules are wired together to form arrays, then tied to an inverter, which produces power at the desired voltage, and for AC, the desired frequency/phase.