Are solar photovoltaic power plants the future of power generation?

Although it currently represents a small percentage of global power generation, installations of solar photovoltaic (PV) power plants are growing rapidly for both utility-scale and distributed power generation applications.

Can inexperienced local staff develop a solar PV power plant?

However, with appropriate training, the use of inexperienced local staff can present a low-cost and locally-beneficial method of developing a solar PV power plant. Strict quality management is required.

Are solar PV projects suited to project financing?

Solar PV projects have historically been well suited to project financing because many sell power at a fixed tariff (as opposed to a fluctuating price on a merchant market) and often on a “take-or-pay” basis whereby the off-taker purchases whatever volume of power is produced, thus mitigating both price and volume risk.

How can a capital grant help a solar PV project?

Capital grants awarded through a tender or application process have also helped support solar PV projects, especially in the early stages of PV power commercialization when its costs were very high, the awareness of its characteristics limited, and the perceived risks high.

Why is solar PV project development so important?

As opportunities for solar PV project development have increased, the number of qualified installers has commensurately expanded. Compared to the EPC process used for other forms of power generation, solar is relatively straightforward and local construction companies have been able to build capacity quickly.

Is solar PV a competitive source of new power generation capacity?

Solar PV is emerging as one of the most competitive sources of new power generation capacity after a decade of dramatic cost declines. A decline of 74% in total installed costs was observed between 2010 and 2018 (Figure 10).