Smart Innovation

Advancements in Solar Technology - A Ray of Innovation

In this dialogue, Marie Eckstein, vice president and general manager of Advanced Technologies and Ventures, Dow Corning, discusses advancements in solar energy technologies with Murray Cameron, vice-president of the European Photovoltaics Industry Association (EPIA) and chief operating officer at Phönix SonnenStrom AG.

What factors have made solar energy more economically viable?

Marie Eckstein Dow Corning Corporation	ME: Fundamentally, the solar industry as a whole has advanced and grown to the point where solar solutions are not only an environmentally friendly option, but also a cost effective one. Obviously, the increasing cost of traditional energy sources has contributed, but the solar industry is quickly evolving into an economically attractive energy source. The cost to produce one watt of solar power decreases 20 percent every time the solar industry capacity doubles – and at current growth rates, capacity doubles every few years. To continue this growth, it’s important to assure a reliable supply of solar’s most important raw material – polycrystalline silicon. Dow Corning has a leading role in this effort, through our joint venture, Hemlock Semiconductor, the world’s leading producer of polycrystalline silicon and our own photovoltaic industry expertise.
Murray Cameron Phönix SonnenStrom AG	MC: Crucial to the dramatic growth of the global solar electricity sector over the past few years has been the emergence of promotion mechanisms in various parts of Europe, Asia, and North America which has enabled producers of photovoltaic technologies to expand their manufacturing capabilities and, hence, has provided significant economy of scale benefits. In addition, massive investment in new innovative thin film technologies and more efficient crystalline manufacturing processes have helped to lower the costs of photovoltaic modules to the point where our sector is already challenging conventional technologies as the most competitive provider of peak power in many countries. This cost reduction process is expected to continue aggressively over the next few years.

 

Q1:	What challenges still exist in implementing solar energy more broadly?
Q2:	In terms of economic and environmental viability, how does solar energy compare with other alternative energy sources?
Q3:	What are your predictions about solar technology looking five to ten years down the road?

Q. What challenges still exist in implementing solar energy more broadly?

ME: As with any cutting edge technology and high growth emerging market, high costs and reliability of supply are a challenge in this immature industry. It is critical that the entire solar energy global supply chain continues to focus on bringing cost efficient solutions to the table. Today’s energy challenges require multiple solutions, and the diverse capabilities and extraordinary potential of solar energy will play a significant role in solving these challenges. At Dow Corning, we realize that cost efficiency throughout the supply chain is essential to the solar industry, and we are working with our customers to develop more cost effective solutions. By leveraging our 60 plus years of expertise in silicon chemistry and our experience in the semiconductor, electronics, and construction industries, we think that we can make a difference in the solar industry with creative solutions at multiple steps of the value chain.

MC: Growth is expected to be driven by markets in Germany, Japan, and the U.S. These markets, Germany in particular, are responsible for fostering the manufacturing expansions which feed through to lower production costs and, ultimately, lower PV electricity generating costs. Our industry's goal is to compete with conventional electricity costs and avoid the need for long term support mechanisms. To achieve that goal, we must ensure that other countries act in the short-term so that solar electricity gains a foothold, bringing with it job creation and investment in local economies. Countries such as Spain, Italy, and Greece, as well as the emerging economies of Asia and South and Central America are obvious candidates due to their rapidly growing demand for electricity and the high number of sunny days during the year. Back to top

Q. In terms of economic and environmental viability, how does solar energy compare with other alternative energy sources?

ME: Solar is the only completely renewable alternative energy source with the fundamental capability to satisfy the energy needs of the world. The world consumes more than 13 terawatts (1 TW = 1 trillion watts) of energy annually. The sun delivers 170,000 TW each year, while wind, geothermal, and tides each have the potential to generate two to five terawatts each. 20 TW would be produced if 16 percent of the world’s surface were covered with solar panels. At solar’s current pace, by 2010 the technology may produce up to 10 gigawatts (GW) of power annually at peak power. With an average nuclear power plant generating one GW annually, it is clear that solar is quickly becoming a more relevant source of new energy.

MC: Compared with conventional generating options, all renewable energy technologies are environmentally more viable since they produce far fewer emissions. Each renewable option, such as wind or hydro power, has its own focus within the overall energy scenario. Solar electricity technologies can be deployed everywhere in the world and can be as easily situated in urban environments (on roofs for example) as in remote rural settings. In addition, solar electricity can be deployed extremely quickly in both industrialized locations as well as developing countries, since it can either be coupled to an existing distribution grid or deployed in stand-alone (grid-independent) situations. Back to top

Q. What are your predictions about solar technology looking five to ten years down the road?

ME: The phenomenal growth this industry is currently experiencing will continue. Solar will light the path for countries seeking energy independence and more cost-effective means of providing energy to citizens and businesses. The increased growth will spark innovation in the industry, providing continued cost efficiencies. From an application standpoint, we expect the emergence of new market segments in the industrialized world as people imagine more options for solar, but also we hope that solar will reach the billions of people around the globe living without electricity. Even energy-intensive manufacturing companies may find that solar energy may play a role in their long-term energy strategies.

MC: The members of the EPIA recently pooled their ideas on where the industry would be by 2010. There was a consensus that the photovoltaic market will continue to grow rapidly over the next five years and beyond. This prediction even takes into account bottlenecks caused by a temporary lack of sufficient availability of suitable grade silicon. While thick crystalline technologies will continue to dominate the sector, thin film will take an ever increasing share of the market in the coming years. We will see the emergence of much more flexible technologies which will allow for our sector to better respond to the needs of building integrated applications and to provide greater cost competition with conventional electricity. Back to top

Related Articles

1. Transformation is Both Beneficial and Beautiful - A letter from Stephanie Burns, Chairman, president and CEO of Dow Corning about Dow Corning's commitment to sustainable development
2. Demand in Solar Energy Industry Drives $400 Million Hemlock Semiconductor Expansion - Dow Corning announces expansion of world’s largest producer of polycrystalline silicon
3. Making a Difference in Solar from Sand to Sun™ - Addressing Critical Needs throughout the PV Value Chain
4. Dow Corning Solar Solutions Introduces Breakthrough Solar Material - Commercially viable solar-grade silicon derived from metallurgical silicon purification will increase the availability of feedstock to the photovoltaic industry, providing new options to ingot, wafer and cell producers

Did you miss a Smart Innovation issue? View previous publications

About Dow Corning

Dow Corning Corporation (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicon-based technology and innovation, offering more than 7,000 products and services, Dow Corning is equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning’s annual sales are outside the United States.

To keep up to date with news from Dow Corning, sign up to our
news and information RSS Web Feed | What is an RSS Web Feed?

WE HELP YOU INVENT THE FUTURE™