AUTHOR=De Sousa Luís A.

TITLE=Photovoltaics: New Policy Challenges for Europe

JOURNAL=Frontiers in Energy Research

VOLUME=Volume 1 - 2013

YEAR=2013

URL=https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2013.00007

DOI=10.3389/fenrg.2013.00007

ISSN=2296-598X

ABSTRACT=During the past decade governments across Europe have set in place a series of
programmes to expand investment on grid-connected solar power technology, most
especially Photovoltaics (PV). Recently most of these programmes have been
rolled back, in face of rapidly declining costs. Using a simple model this
article shows that basic PV electricity costs are presently below 0.10 €/kWh in
large swaths of the continent, entering levels where previously only nuclear and
fossil fired electricity where found. Due to the scalable nature of PV, many
households in Europe are now able to produce their own electricity at a cost
considerably lower that the rates demanded by grid utilities. If governments
proceed with the complete roll back of fixed electricity rates to PV suppliers
the most likely result is a shift to off-the-grid systems. Long term this
trend presents serious challenges to utilities and traditional electricity
suppliers, putting at stake the traditional electricity market framework.