Technical and regulatory developments needed to foster grid-connected photovoltaic within the UK electricity sector

摘要

Purpose of the workAlthough the worldwide PV sector has been experiencing an unprecedented and stable growth, the UK PV sector is still lagging behind. The purpose of this work is to contribute to the exploration of the prospects for PV to move from its current niche position to mass deployment in the UK.It is undeniable that the recent PV sector developments are mainly due to already implemented government incentives. Although high cost reductions are expected, costs of grid-connected PV systems are still too high compared to other generation technologies to make them profitable for solely private sector investments. Therefore, it is still crucial, on one hand, to identify the right policy incentives and, on the other hand, to achieve the necessary cost reductions and efficiency increases needed for the successful development of an eventual self sustaining PV market.The paper will examine the financial and economic case for investments in different types of grid-connected PV system within current UK policy and market conditions. Impact and interactions between policy incentives and market dynamics will be assessed by developing a framework for financial appraisal of investments in PV systems, initially focussed on current technologies and applications and then considering possible technological, market and policy developments.