Executive Summary
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Europe has focused on the development of
renewable energy sources so as to decrease fossil fuel
consumption and the dependence on fossil fuel imports. This
is also in line with Europe’s greenhouse gas emission
reduction targets as specified in the Kyoto Protocol, to
which Europe is a signatory. In Europe, the demand for solar
energy for power generation and heating has been on the rise
as capacity additions in the solar energy industry have
continuously increased from 2002 to 2005. Some of the major
factors that have influenced the demand for solar energy
include rising oil consumption in Europe, increased share of
imports in total oil consumed in Europe, and growing power
consumption in Europe. |
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If fossil fuel is to be replaced with
renewable energy sources, the cost of generating renewable
energy should be comparable with that of generating conventional
power. Hence, Europe is developing technologies for producing
low cost solar cells. Renewable energy can also be used as a
decentralized source for providing power in remote locations.
To increase solar energy consumption in domestic electricity and
heating applications, Europe is promoting integration of solar
energy systems in constructions. This will help to decrease the
pollution resulting from conventional power generated for
domestic applications. To support the generation of solar
energy, Europe has introduced feed-in tariff and the green
energy certificate system, and is conducting the sustainable
energy campaign.
A number of financing schemes for the development of renewable
energy projects have also been introduced. In addition, at the
country level, a number of regulations providing subsidies and
tax rebates have been introduced. However, inconsistent federal
support remains an issue that can hamper investment in the
sector.
In Europe, a major source of solar energy is from the solar
cells installed in buildings for grid connected and off-grid
power supply and the development of solar energy parks. Europe
can also effectively utilize the desert areas for large-scale
generation of solar power.
Research and development is also being conducted to develop
various methods to generate electricity and fuel from solar
power. Power generation companies like BP Solar and leading
financing companies such as GE Energy Financial Services have
invested in the development of some of the world’s largest solar
parks in Europe.
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