Market Risk Analysis on Solar Thermal vs. Solar Photovoltaic System in Essay

Market Risk Analysis on Solar Thermal vs. Solar Photovoltaic System in UK - Essay Example It is a universal knowledge that the burning of oil and natural gas could produce and emit excessive carbon monoxide and carbon dioxide that could trigger global warming. To combat the global climate changes, the UK government decided to gradually shift from the use of non-renewable to renewable energy resources (Committee on Climate Change, 2010). Recently, the Committee on Climate Change announced that the Scottish Government will reduce the carbon gas emission by 3.5% annually between 2020 to 2050 (Committee on Climate Change, 2011). As a result of increasing the use of non-renewable energy resources, the annual emission of carbon dioxide throughout the United Kingdom decreased from 8.95 metric tons per capita in 1995 down to 8.6 metric tons per capita in 2007 (Federal Statistical Office Germany, 2010). Solar photovoltaic (PV) and solar thermal is another form of renewable energy resources that will enable the UK government to generate electricity using the sunlight that falls upon the silicon layer of a solar system (Goodall 2007, p. 268). To enable the reader gain a better understanding of solar PV and solar thermal system, a brief literature review will be conducted concerning the nature and advantages of these two alternative energy resources. Given that existing UK renewable energy industry is focused on the use of biofuels, wind power, and hydroelectricity, this report will conduct a risk management analysis whether or not the UK government should extend its financial and political support in the promotion of either solar photovoltaic or solar thermal as one of the potential renewable energy resources throughout the United Kingdom.