Environmental Engineering Reference
In-Depth Information
Existing technical solutions to the present energy system include higher efficiency,
increased reliance on renewable sources, deployment of new energy technologies,
and policies to accelerate the adoption of new technologies.
These solutions are complementary, because it is possible to develop a new
technology for obtaining renewable energy with simultaneous gains in efficiency.
In this sense solar energy offers great possibilities. A more efficient energy use
must be made whenever possible, as this extends the life of the finite sources of
fossil fuels, reduces environmental impacts, and, in general, offers economic ad-
vantages in terms of investment returns.
There is a long way between the theoretical potential of an energy source, its tech-
nical, economic and market potential:
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The theoretical potential
represents what may be achieved on the basis of physical
laws—particularly the laws of thermodynamics—and the existing natural resources.
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The technical potential
represents energy savings resulting from reduction of friction
and other losses as well as the use of more efficient technologies. The technical poten-
tial does not take economic considerations into account.
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The economic potential
is achievable in ideal open market economies where there is
competition among investors and availability of information among all users for de-
cision making. In an ideal open market there is no government interference in adminis-
tering prices.
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The market potential
is what is expected to be obtained given the commercial
conditions. Such conditions are determined by market barriers and imperfections
such as government interference and lack of information between agents who sell
and buy publicly. The market potential is also determined by social barriers in
