How solar energy could solve crisis

Clean, flexible and easy to maintain, solar energy has the potential to revolutionise the energy industry, yet EU governments have generally been slow to develop the technology. The need to confront the looming energy crisis, however, could change all this. According to some experts, the sun hits the earth with as much energy every day as that provided by fossil fuels annually. That big, yellow ball in the sky could be supplying all of our energy needs 10,000 times over.

If consumers had their way, use of so-called photovoltaic technology, which uses solar cells to produce electricity from the sun, would probably be bigger than it is now. In countries such as Germany, demand from homeowners for photovoltaic solar power is so high that producers of silicon, the raw material used in solar cell manufacturing, are having trouble keeping up.

"The silicon shortage is linked to strong demand driven by new markets. This will produce some slowing of growth of the market," explains Marie La Tour at the European Photovoltaic Industry Association. "Supply cannot be increased in a couple of months. [Increasing supply] is a huge investment."

The silicon shortage is expected to last until 2008, by which time producers will have built the new polysilicon plants needed to increase capacity. The solar cell industry, which competes with other sectors, including computer manufacturers, for silicon, is waiting impatiently to secure its share of future supplies.

"The silicon shortage means that our growth is limited," says Stefan Dietrich, spokesperson for Q-Cell, a German company manufacturing energy-producing solar cells. "This year, we are growing at 60-70% globally. Next year, this will be down to 20%. In 2008, it will be up to 40%. It's always good to have additional supplies on contract."

Germany is the world leader in solar energy, representing more than two-thirds of the EU market. This might seem odd, given the country's dank climate, but the beauty of photovoltaic technology is that it relies on light, rather than direct heat, making it suitable for northern climes. Latour attributes Germany's strong market presence to the German government's track record of lending strong support to the industry, particularly for research and development.

Italy, Spain and Greece are catching up with Germany. Lartour explains that, in these countries, favourable electricity purchase prices permit a good return on investment for homeowners. In the EU overall, photovoltaic solar power grew by 64% last year, raising total installed capacity to nearly 1,800 megawatts.

"Obviously, future development will depend on political decisions," says Latour. "Today, we're not a competitive form of energy. But, we know that we will soon be competitive, especially when it comes to supplying peak power needs, for example, in Spain, where use of air conditioning at some points of the day is higher."

With skyrocketing demand expected over the next few years, the future of the solar energy industry seems assured. The advent of nanosolar technology could revolutionise the industry further. Big companies such as Shell have become interested in the potential of so-called thin-film cells which are cheaper to produce and easier to handle than bulky solar panels.

The technology, which does not require silicon, has yet to be perfected, but it probably will not be too long before consumers are able to roll out super-thin films of solar cells anywhere that the sun's rays can be caught. Manufacturers of heavy silicon solar cells, which are currently having trouble meeting demand, will have to fight for their share of the market once thin-film technology has been brought up to speed.

Clean, flexible and easy to maintain, solar energy has the potential to revolutionise the energy industry, yet EU governments have generally been slow to develop the technology. The need to confront the looming energy crisis, however, could change all this. According to some experts, the sun hits the earth with as much energy every day as that provided by fossil fuels annually. That big, yellow ball in the sky could be supplying all of our energy needs 10,000 times over.