Mechanisms of hardware and soft technology evolution and the implications for solar energy cost trends
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Engineering topics
Publications and source records attributed to Klemun, Magdalena M..
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Linkages between the Sustainable Development Goals (SDGs) have sparked research interest because a better understanding of SDG co-benefits may enable faster progress on multiple sustainability fronts. However, SDG linkages are typically analyzed without considering the technologies used to implement a primary SDG, which may have secondary effects on other SDGs. Here, we outline an approach to study this problem by connecting the industries and services required to produce a technology to the United Nations SDG indicator framework, using SDG7 and four energy technologies as an illustrative case. We find that all technologies in our set involve potential co-benefits with SDGs 1, 8–10, 12–13, and 17, and trade-offs with SDGs 6, 8–9, 11–12, and 14–15. Deployment services primarily induce co-benefits; manufacturing has mixed impacts. Our work sheds light on the technology characteristics (e.g., scale, high- or low-tech) that influence linkages while also pointing to SDG-relevant characteristics not captured by UN indicators.
PV’s historically rapid cost reduction is exceptional among technologies. Further cost reductions could play a major role in increasing deployment in the future. To enable such cost reductions, new modeling frameworks are needed to understand the determinants of innovation in PV. In this project, we study the mechanisms driving PV module and system cost reductions, delving deeply into the specific technological innovations that have occurred in the past and the policies that encouraged them, and also opportunities for future cost reduction and widespread deployment. The project contributes new fundamental insight on the determinants of technological innovation by developing novel methods and insights that are generalizable and can therefore be applied to other technologies. The results will allow policy makers, engineers, and other stakeholders to better prioritize their efforts and investments in the future. The project is organized around four journal articles as described below. The first article [1] identifies ‘low-level’ (e.g. conversion efficiency improvement) and ‘high- level’ (e.g. R&D efforts) mechanisms of cost reduction in PV systems (Tasks 1-4). This work builds on a previous DOE grant, where we developed a framework for technological innovation leading to PV module cost reduction [2]. We advance a method to disentangle the contributions of physical (‘hardware’) and non-physical (‘soft technology’) changes. Our results uncover reasons behind the relatively slow evolution of soft technology and can inform new innovation approaches to these technologies. The second article [3] identifies specific engineering or institutional innovations that enabled the low-level mechanisms of cost reduction in PV module and balance-of-systems (BOS) (Tasks 5, 9, 10). We identify 85 innovations and connect them to the cost variables they affected. By developing an innovations typology, this study shows the differences between the types of innovations affecting PV modules and BOS components. Finally, by analyzing the industry origins of innovations, this study also finds that PV was well-positioned within an ecosystem of continuously advancing technologies. The third article [4] studies prospective cost reduction opportunities (Task 10). We explore how design approaches that emphasize standardization and automation, such as plug-and-play PV systems, can create cost reduction opportunities by reducing interactions and speeding up activities with high process costs. We show that this can lead to cost reduction in cost components with the most untapped opportunity for improvement such as installation labor, overhead, electrical BOS, and customer acquisition. The fourth article [5] analyzes how various policies supporting PV deployment and R&D contributed to PV’s cost improvement by enabling high-level mechanisms, specific innovations, and ultimately low-level mechanisms of cost reduction (Tasks 8, 13, 14). We investigate examples from different countries and connect these policies to quantifiable cost change mechanisms. Our study sheds light on the roles that different nations played over time, through a diverse set of policy approaches.