Utilities support solar electricity.
An interview with Dr. Roberto Vigotti
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Last updated: 18 March 2001

The Visitor centre at the 340 kWp demonstration PV Power Plant operated by the German Utility RWE Energie at Kobern-Gondorf also includes PV modules in its roof. Roberto Vigotti is a senior technical manager in ENEL, the Italian national electric utility. He is committed to a solar electric future, and was the driving force, which led to the creation of the International Energy Agency's Photovoltaic Power Systems Programme of which he is Executive Committee Chairman.

Why have eighteen leading industrialized countries come together under the framework of the IEA to collaborate on photovoltaics?
There are many good reasons for international collaboration, not least of which is to be more cost-effective. By pooling resources we can develop the best strategies for PV to become an energy-significant option. The IEA has a well-established framework for the type of research and technological co-operation we have launched.

World PV module shipments What is the rationale for the utilities' interest in PV?
Utilities must plan ahead and invest in new generating plant to meet future electricity demand. Utilities also look for new and improved generation technologies, and PV systems have several features, which place them in a favourable position. Above a system-size threshold as low as a few MW, economies of scale in capital and operating costs are small. This may be of crucial importance to the advancement and acceptance of PV as a utility power technology, because experience resulting from the development of intermediate markets such as village power is directly applicable to bulk power PV systems. Large-scale users, such as utilities, can obtain significant experience with PV systems that are small with respect to conventional generating units, thus minimising the utilities' financial exposure.
Many utilities already use photovoltaics successfully for remote applications such as telecommunications, cathodic protection and data acquisition. These PV systems are used because they are economic, and remote grid-connected power options are very limited because the cost of extending and maintaining line power can be prohibitive. Even if high-voltage power is nearby, the cost of a transformer alone can exceed the cost of the photovoltaic approach. Utilities are now assessing the value of other applications more closely related to the traditional business of supplying electric power to customers. For example, a trade-off is being considered between extending distribution lines to relatively remote customers and alternatively providing a stand-alone photovoltaic system.

PV forecast alternative scenarios share by applications in 2010 How do you see the PV market evolving?
Today PV is employed in a range of remote applications. PV is the best technical solution for powering service applications, such as telecommunications, and can provide basic services such as lighting and water pumping to communities which are not linked to the electricity grid. As existing markets expand and PV prices continue to fall, PV will become more competitive in utility applications. Firstly in the demand-side management area, for example PV integrated into buildings, and later in large-scale multi-megawatt power stations.

Do you have any targets for PV power generation in Europe?
At the 12th European Photovoltaic Solar Energy Conference in Amsterdam in April 1994, I outlined a challenge for Europe. PV technologies can be expected in the coming years to make an increasing contribution to the energy economy of the European Union, but if this contribution is to become significant before the year 2010, then new initiatives are needed now. To achieve this, key European, national and regional actors must stimulate the market for PV generators, the level of PV component manufacturing must be greatly expanded, and the PV skills base must be strengthened.
The Austrian Utility, Oberosterreichische Kraftwerke, has been undertaking long-term testing of the grid-connected PV Plant at Mount Loser This political commitment must be complemented by a 10 year 'transitional package' of publicly-supported programmes, to facilitate the move to lower cost, grid-connected PV through the scaling-up of PV manufacturing. The package should involved enhanced EU/Member States collaboration and funding. New initiatives are needed to promote rapid investment in new PV manufacturing plants. If the target of 1% of present European Union (EU) electricity consumption from PV is to be achieved by 2010, ten a total of 2 GWp/year of PV module production will be needed, requiring an investment of about US$ 2 billion in new manufacturing plant. This should be stimulated by means of a public invitation from the EU to firms to tender for a joint funded 'partnership investment' programme for new PV manufacturing plant. The provision of the financing should be linked to firm contracts between the industry and utilities to supply PV power in the EU, thus encouraging long-term collaboration between the utilities and the PV industry.
The introduction of substantial capacities of PV power will require significant investments, and it is recommended that these investments should be made mainly through electricity utilities. In order to promote the rapid introduction of PV power and fund investments in PV plant, a mechanism could be implemented such as the Non-Fossil Fuel Obligation, which has been a great success in the UK, or the utilities could be permitted (with EU-wide agreement and co-ordination) to charge a PV levy, and to make a small management charge for their PV-support activities.

Sukatani: one of the 10000 home power systems in operation in Indonesia. The national utility, PLN, is actively involved in electrifying villages, not on the grid, using PV. What additional support would you advocate for the promotion of PV generators in developing countries?
Special aid initiatives are needed to promote the use of PV in developing countries. PV generation is already the most reliable and cost effective source of electricity for remote regions, and the developing countries market is vitally important for the PV industry in the short to medium term as it builds up its lower-cost production facilities, but before its costs fall the point where PV can compete with conventional grid power generation.
Like most forms of renewable energy, PV power generation involved a high initial investment and negligible running costs. It is therefore very well suited as a product for donor aid to developing countries, but it needs special consideration when financed by means of loans.
PV systems for rural areas are frequently installed as decentralized generators, and are often purchased in relatively small quantities compared with conventional power stations. Special financing schemes are therefore required, as were also discussed at length during the Amsterdam Conference.

As Chairman of the IEA  PVPS Programme, how do you see the Programme contribution to the development of PV?
The PVPS Programme covers broad spectrum of research, development, demonstration and information dissemination activities. There are currently six distinct projects, each led by a different agency and with partners from participating countries, and I anticipate that these will expand as more countries join the programme. As work progresses significant results will be shared by the participants and new areas of research will be identified and undertaken. Through this unique international co-operation, I hope that many significant developments in PV technology and applications will be achieved.

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