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in combination with other energy reduction measures can take up to 15% or roughly € 100 billion out of the EU energy bill in a few decades time. 5. The worldwide and the European solar thermal markets have grown significantly over the recent years. The most dynamic markets for flat-plate and evacuated tube collectors worldwide are in China and in Europe. The average annual growth rate between 1999 and 2003 was 27% in China and 12% in Europe. At the beginning of 2005, the installed capacity of flat-plate and evacuated tube collectors in Europe was 10 GWth (14 million square meters of collector area). 6. Europe is leading in technological terms but in terms of manufacturing, 75% of the solar thermal collectors produced worldwide in 2003 were produced in China. Europe comes in at second place, with just 10% of the worldwide production. In order to improve European competitiveness and to open new markets, the European solar thermal sector needs to increase its research efforts and levels of market support. Therefore a strong common European strategy for solar thermal technologies is needed. 7. Markets for solar thermal systems are domestic hot water preparation, solar heating and cooling of buildings, process heating below 250 °C, drying processes e.g. crop drying, sea water desalination and other special applications like “Floating Solar Chimney Technology”. New approaches for solar thermal applications are solar-combined heating systems, solar-supported district heating for housing estates and solar-supported process heat up to temperatures of 250 °C. (B) Market situation and potential 8. A large variety of solar-thermal components and systems, mostly for residential applications, are available on the market. The products are reliable and show a high technical standard in the low temperature regime. However, there are technical and economic barriers and obstacles preventing the wider use of solar thermal components and systems. The market growth is not yet stable and still is very much dependent on public support (subsidies), not unlike the other renewable energy technologies. 9. Solar heating and cooling applications have a low penetration in most countries where business is carried out mainly by small and medium enterprises with partly manual fabrication and no established technical-scientific R&D divisions. There has been, however, a rapid market growth in recent years for small solar hot water systems (SDHW) in countries moving towards partly automatic or semi-automatic fabrication of solar-thermal components. Over the past 20 years the specific costs of SDHW systems have decreased by a factor of two. Nevertheless “solar heat” is not yet seen as fully competitive with fossil alternatives. 10. The worldwide contribution of solar thermal heat to the overall energy supply has been strongly underestimated in the past. The IEA-SHC-report “Solar Heating Worldwide: Markets and contribution to the energy supply 2003” was prepared within the framework of the Solar Heating and Cooling Programme (SHC) of the International Energy Agency (IEA). The 35 countries included in this report (IEA-Member States, Barbados, Brazil, China, Cyprus, and India) represent 3.7 billion people which is about 57% of the world’s population. The collector area installed in these countries is estimated to represent 85- 90% of the solar thermal market worldwide. 11. The world-wide installed capacity of solar thermal systems is estimated to 92.7 GWth corresponding to 132 million square meters of collector area at the end of year 2003. Of this, 69.5 GWth were counted by flat-plate and evacuated tube collectors, which are used to prepare hot water and for space heating and 22 GWth by unglazed plastic collectors, 100PDF Image | Economic Perspectives of Renewable Energy Systems
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