Solar Opportunities in the Developing World
Almost all of the electricity currently produced and used in developing countries comes from burning coal and oil (including diesel). However, it is not inevitable that the marked growth in demand for energy to fuel economic growth leads to significantly increased rises in carbon emissions, according to David Eurin, Head of Energy Consulting at Analysys Mason.
SEOUL, SOUTH KOREA (February 22, 2010) – Many developing countries have abundant, geographically dispersed, renewable energy sources (sunshine, biomass, wind, geothermal, hydropower) that have the potential to supply local communities with affordable, sustainable, low-carbon energy.
By default, most rural technology systems are powered with diesel generators. The use of small-scale solar electricity plants, such as photovoltaic panels associated with adequate energy storage capacity, can trigger a step change in the way electricity is generated and enable other green growth solutions. David Eurin, Head of Energy Consulting at Analysys Mason, explains solar power offers an elegant solution: it has no need for extensive power transport networks, consumes no fuel and generates energy without increasing carbon emissions. Compared to other sources of power, sunshine in most geographies is relatively easy to predict and readily available. The unit cost of solar power has also declined significantly in recent years, making investments easier to recoup, and generally competitive with diesel generation.
Eurin points out a transformation of the electricity system from centrally-generated electricity towards a more decentralized use of distributed, sustainable, low-carbon energy generation would be economically and socially desirable on a local as well as global level. This transformation would be accompanied, in particular in rural areas, by a move towards small-scale electricity production, which will enable the use of advanced technologies. Other advantages include higher security of supply (through a lower reliance on oil and gas) and a disconnection from international energy market volatility.
A recent project sponsored by EBRD found that mobile telephony infrastructure can be rolled out in rural areas in conjunction with solar panels and energy storage capacity. It also found that the vast majority of the energy required to run a mobile base station can be sourced from the solar panels, even though contingency power supply remain indispensable for service continuity.
Distributed energy generation is key to deploying advanced, ‘green-growth’ technologies in developing countries. Eurin believes the abundance of sunshine in many developing countries and the progress made in storage capabilities and costs can lead to widespread deployment of solar panels and other renewable solutions, where the resource is strong, to support essential infrastructure. Significant social and economic development can stem from this shift as well as a significant reduction on carbon emission growth.
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