The Shadows Cast by Inadequate Energy Governance: Why More Sun Does Not Necessarily Mean More Photovoltaic Electricity

Many governments have used market stimulation programmes focusing on increasing awareness, regulatory interventions or financial incentives for photovoltaics (PV). Solar resource availability is thus not the primary determinant of economic viability of photovoltaic solar energy systems. Countries with a moderate annual solar radiation resource, such as Germany, have, via governmental interventions, become leaders in installed photovoltaic capacity. In other countries with abundant solar radiation, such as Spain, governmental interventions have led to a boom-bust effect in the PV industry. Governmental governance, is here defined as the combined effect of prevailing policy, regulatory, fiscal and legal environments and measures. In this chapter, international case-studies are presented where different types of governmental governance have led to policy formulations and whose implementation has either enabled and facilitated increased PV uptake or has created barriers to maintaining steady growth in the solar photovoltaic industry.