Page 57 - A Comprehensive Guide to Solar Energy Systems

52 A COMPREHEnSIVE GUIDE TO SOLAR EnERGy SySTEMS

of a renewables-based system (solar in Germany produces on average only 7% of total an-
nual electricity needs), daily demand peaks are mostly shaved, wholesale prices not only
plummet but increasingly turn negative, and current transmission/distribution networks
face challenges. If you want a relatively smoothly energy transition, it is key to think about
intelligent new electricity market designs in a timely manner—and quickly put this into
practice with a concerted effort.
A good example for a region that has reacted late to the challenges of the energy transi-
tion is the European Union. The EU is suffering from power generation overcapacities, as it
has not been able to implement efficient measures for its member states to orderly retreat
from dirty and inflexible coal. However, the recent “Clean Energy for All” proposal of the
European Commission, though it needs some improvements, is a step in the right direc-
tion, offering an appropriate toolset to master many barriers toward a renewables-based
economy.
In summary, SolarPower Europe sees three key topics for the EU to move to a clean and
low-cost energy economy, which are similarly applicable for other countries:

• The EU needs a reliable governance framework to navigate the economy toward
renewable energy with ambitious and binding targets for renewables. Subsidies
for dirty and inflexible power technologies must be eliminated and phase out plans
set up.
• Electricity market design needs to enable profitable investments and operation of
variable renewable energy sources, taking into account rules for storage, demand
response, and aggregation to provide new services. A cross-sectoral-approach for the
power, heating, and transport sectors is required that will increasingly be based on
renewables-generated electricity.
• Modern renewable energy frameworks are needed to enable new business models
for solar and storage that put active consumers in the heart of the energy transition,
allowing self-consumption without the burden of prohibitive taxes, or other barriers.
While tenders are good mechanisms for efficient planning and deployment of utility-
scale solar plants, their design is crucial to guarantee long-lasting, high-quality power
generation.

If policy makers in Brussels and European countries would really take the character-
istics for flexible solar and its renewable peers into consideration, as they strive for clean
energy security of their economies, the energy transition could proceed much faster and
at a much lower cost.

References

[1] Renewable Energy Progress Report, European Commission, Brussels (1.2.2017) 2017.
[2] Impact Assessment accompanying the draft revised Renewable Energy Directive. European
Commission, Brussels.