Renewable energy sources like concentrated solar and photovoltaic solar systems are the most viable technologies likely to challenge the dominance of fossil fuel on the global energy scene, according to a report released by the Boston Consulting Group (BCG).
The report, entitled “What’s Next for Alternative Energy?” looks at seven of the most promising renewable energy technologies – advanced biofuels, electric vehicles (EVs), concentrated solar power (CSP), solar photovoltaic (PV – solar panels), onshore wind power, offshore wind, and so-called “clean coal” through carbon capture and sequestration (CCS) – and assesses their potential to make a market impact on cheaper, more conventional energy sources.
The report finds that for some of these technologies, solar energy in particular, the day is fast approaching when solar penetration will disrupt the status quo.
According to Balu Balagopal, a senior partner at BCG and a co-author of the report. “[A] few of these green-energy technologies will make their presence felt very likely within the next few years. Their costs are falling quickly and significantly, pushing them closer to where they can compete on price—without subsidies – against fossil-fuel-based sources.”
Carbon Capture and Sequestration (CCS) would be necessary to ultimately curb carbon emissions, but the BCG report concludes this technology is still decades away from realistic implementation, while photovoltaic solar would achieve cost competitiveness by 2015-2020 in sunny regions. For total deployment and market confidence however, scientific breakthroughs in large-scale energy storage would need to occur.
As for Concentrated Solar Power (CSP), it would also reach parity in the 2015-2020 time frame, and is uniquely able to provide on-demand power though cost-effective thermal storage.
As with all new technologies however, “their adoption will be constrained more by barriers such as the need for new supporting infrastructure. However, we believe these barriers will likely prove surmountable,” added Balagopal.
