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semiconductors such as gallium arsenide, cadmium telluride and copper-indium- diselenide. 3. The intensity of sunlight falling on the surface of the earth when the sun is directly overhead can reach 900 watts per square metre but the average intensity is usually in the range 90 to 290 Wm2. Laboratory cell efficiencies can be up to 45%, but current commercial cells reach only 17% and the average system efficiency for terrestrial applications is only 10-13%. As a consequence, solar cells need to cover large areas if significant electrical powers are to be made. Fortunately, only a very thin layer of the often-expensive active material is needed for solar cells but thin PV junctions covering large areas need good physical support which can itself be costly. Using the roofs and the facades of the buildings in which the electricity will be used as support for the cells in so- called building integrated PV (BIPV) is consequently a favoured approach. 4. Individual solar cells make low -voltage direct-current electricity and most PV installations therefore need additional equipment to convert this to the medium-voltage alternating-current electricity that is easy to switch and transport and for which most modern electrical equipment is designed. Finally, PVs can make electricity only during daylight and, in most applications for bulk electricity; they must therefore be used in conjunction with storage devices or back-up sources. Stand-alone or ‘hybrid’ installations have their back-up sources or electricity storage co-located with the solar cells; grid- connected installations rely on the normal electricity grids but require appropriate connection equipment. The solar cells themselves are therefore only part of what is required for practical PV electricity. (B) Market situation and potential 5. Photovoltaic (PV) systems use semiconductor materials to convert sunlight directly into electricity. They have already proved their advantages over conventional energy sources in remote, off-grid applications and in mobile specialist devices such as watches and calculators. These applications have already created a successful PV manufacturing industry. 6. PV-systems drawbacks are that they cannot directly meet electricity demand at night; nor during bad weather nor in winter in the more northerly, more cloudy countries of the EU; that their take up is likely to be slow if it has to be linked with replacing or refurbishing buildings – but above all that their costs are currently too high. The costs for grid- connected PV systems have certainly decreased in the last decade, to the extent that resulting electricity costs are close to retail electricity prices in favourable situations. But these costs are currently some 5 – 20 times higher than generating costs for conventional sources and major further reductions are needed. A simple increase in the number of installations will certainly reduce the gap, through ‘learning-curve’ manufacturing cost reductions for PV modules and systems, improved reliability, longer life and higher efficiencies, but SWOG believes more needs to be done to close the cost gap. 7. The current PV scene is dominated by polycrystalline or single-crystal silicon. Improved silicon components and systems are certainly possible, especially through the development of thinner cells, the better application of PV in buildings and the built environment and the application of PV in large scale MW size plants. Improvements in large-scale systems, including higher efficiency contacting mechanisms, better integration with electricity grids will also be useful. SWOG sees little contribution which EU-wide R&D can make to this ‘conventional’ silicon technology now in volume production, though manufacturers will doubtless continue to improve PV cells and 94PDF Image | Economic Perspectives of Renewable Energy Systems
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