Evolution of PV panels

Photovoltaic (PV) panels have been discussed a lot in the media, industries and academics alike. As fossil fuels run out, it is vital to seek alternative means of generating electricity. Current focus of most countries is in wind and solar energy. However, the feasibility of these technologies is dependent on the natural resources available (wind and sun intensity) and this differs from one location to another, let alone between countries. Since solar is abundant in many locations around the world, it would be beneficial to be able to extract as much from it as we can. PV panels are used to extract solar power to generate electricity. PV panels have been improving over the years and this article aims to present the evolution of these panels in terms of efficiency and costs. This will be followed by the discussion on how Malaysia can benefit from this technology.

Extraction of solar energy is not a new concept. In fact it goes back to the time of the industrial revolution, more than 100 years ago. The main usage of the power produced was to drive machinery, by producing steam from the heat that the sun gives out. Solar power has been used to produce hot water for domestic use. However, heat is less valuable than electricity as a form of energy. The photovoltaic effect which refers to the production of electricity from the sun’s energy was first discovered by Henri Becquerel [1]. His work was extended by Werner Siemens and many more that became growingly curious of this effect.

With the advancement of transistor and semiconductor technology, PV panel efficiencies have improved. This is vital as the improvement in the efficiency makes it more practical to be adopted in terms of economics. Economies of scale have showed the effect of reduction in cost due to mass production. That is one of the primary reason of why it is becoming cheaper in recent years. However, in terms of efficiency, it has only been about 15% efficient. Recently, Mitsubishi has developed a polycrystalline silicon solar cell with efficiency of 18% [2]. The reason they can achieve this is they altered the structure to enables reduction in the reflectance on the surface of the solar cell. A few other companies like Sharp and Kyocera have also came up with PV panels which have above 17% efficiency. This is a huge increment to the current level of efficiencies.

In terms of economics, the cost has been reducing over the years. The way that comparison is made is to observe the evolution of the cost of electricity per kilowatt hour. Photovoltaic panel prices have been dropping at a rate of three to five percent per year for the last decade [3]. This leads to the drop in electricity prices per kilowatt hour as there are no additional operating costs such as fossil fuel-based generations. Figure 1 shows the changes in peak prices over the last decade in America and Europe and prices are on a downward trend. Peak prices refers to price of electricity (per Watt) when demand for electricity is high.

Figure 1 : Peak price per Watt of electricity in the retail sector [4]

Having seen the evolution of PV panels in terms of better efficiency and reduction in costs, we will now explore the potential benefits that this technology can bring to Malaysia. Malaysia is located just below 7 degrees above the equator and as such, is blessed with high solar radiation all year round. The potential is huge and with the right investment and proper placement of PV panels, extracting this power is utmost important given that fossil fuels are running out very soon. Let’s look at the potential of extracting that benefit by observing the hours of sunshine in the capital city, Kuala Lumpur as shown in Figure 2.

Figure 2: Hours of sunshine for an average year in Kuala Lumpur, Malaysia [5]

Having an average sunshine about 6 hours a day throughout the year, the potential for this technology is definitely higher than many other countries around the world and especially more than those with multi-seasons. So, what is stopping Tenaga Nasional Berhad (TNB), the National Electricity Board to install PV panels at residential and commercial rooftops and reap this benefit? As discussed before, cost plays a vital role in any investment. Another issue will be managing the intermittency of solar electricity production that will be fed into the electricity grid. Intermittency refers to randomness where production of electricity via this source cannot be predicted. This makes it difficult to balance out supply and demand in the grid.

As fossil fuels deplete and solar panel efficiency increasing, PV panels is and will be a wise choice for Malaysia moving forward. Hence the government should put in more effort to encourage its adoption via some sort of financial incentive in order to benefit in the long run. Countries like Germany have adopted financial incentive based on feed in tariff. However, for a vertically integrated electricity system, such as Malaysia, the range of financial incentives is larger and if the government wants to reach a certain target of solar electricity production in a year, it is definitely attainable.  The major issues are the cost and the implementation phase of incorporating PV panels as part of the Malaysian electricity generating portfolio.

[1] http://www.solarexpert.com/pvbasics2.html

[2] http://techon.nikkeibp.co.jp/english/NEWS_EN/20090721/173272/

[3] http://otherpower.com/otherpower_solar.html

[4] http://www.solarbuzz.com/Moduleprices.htm

[5] http://en.allmetsat.com/climate/malaysia.php?code=48647

Filed under: Energy, Power