2012 EC H1 Prelim QnPaper

2 ©ACJC 8819/01/PRELIM 2012 [Turn Over Section A Answer all questions Question 1 Solar Energy Extract 1: Global solar energy surging Solar electric energy demand has grown by an averag e of 30 percent per annum over the past 20 years against a backdrop of rapidly declini ng costs and prices. This decline in costs has been driven by economies of scale, manufacturin g technology improvements and the increasing efficiency of solar cells. In developing countries, markets have benefited from the steady decline in solar photovoltaic (PV)* prices. India, for example, still significant ly lags behind European countries in the use of solar energy. However being behind has enabled i t to spend far less to set up solar farms than countries that pioneered the technology. In th e past two years, the price of solar power has fallen sharply, thanks to a glut of solar panels in the market and falling silicon prices. Several other factors make solar boom possible in developing countries like India: polluting diesel is unreliable and costly and coal is dirty. Global investment in renewable energy reached a rec ord of US$257 billion last year, with solar energy attracting more than half of the total spending, according to a United Nations report. Investment in solar energy surged to US$147 billion in 2011, a year-on-year increase of 52 percent thanks to strong demand for rooftop p hotovoltaic installations in Germany, Italy, China and Britain. Source: Associated Press , 11 June 2012 *Solar PV (photovoltaic) are panels used to convert sunlight directly into electricity. Figure 1: Global energy usage 2010 Source: Energy Information Administration (EIA)

3 ©ACJC 8819/01/PRELIM 2012 [Turn Over Table 1: Installed photovoltaic (PV) power in Germany and India PV Power (in Megawatts) 2008 2009 2010 Germany 6120 9914 17320 India 90 230 189 Sources: IEA Photovoltaic Power Systems Programme, EPIA, EurObserver and SolarBuzz Extract 2: Solar energy in Germany Among industrialized countries, the German governme nt has led the way in legislating high incentives to stimulate the development of its dome stic solar markets. The German Feed-in- tariffs (FITs) are a cash-back scheme which offers financial rewards to individuals who generate their own electricity. This government policy is designed to reduce CO 2 emissions via solar deployment and to create high-tech jobs through the development of a strong national solar industry. The FITs has caused an explosive growth in demand for solar panel installations on homes, schools, offices and fields throughout the country. This lea ds to the expansion of the solar PV panels industry with its own distributor and dealer networ ks, equipped with well-trained installers and good customer support capabilities. The German government has made large investments in restructuring the nation’s energy infrastructure and weaning