Photovoltaics is one of the most promising renewable energy technologies. PV permits to deliver electrical energy that comes from a clean source – the Sun. Potential of using solar light is so significant, that it cannot be omitted while talking about sustainable energy supply systems of the 21st century. Scarcity of conventional sources and global climate change force mankind to supply energy intelligently. EU considers the PV power as one of the alternatives to the conventional sources of energy. This alternative not only seems to boost the low-carbon economy but also tightens up security of energy supply. Both, cutting CO emissions and strengthening energy security represent major issues of international concern. Rapid pace of industrialisation and a global increase in living standards mean remarkable growth of energy demand. Challenges we face are immensely serious. PV is one of the key solutions.
Solar energy is and will be strategic as:
- Finite fossil fuels will get more expensive (after the global economy recovery),
- Electric power demand is shooting up,
- Affordable module prices make PV energy more and more popular in different market sectors,
- EU Climate Package imposes endorsement of renewable energy sources (RES) via favourable regulations (CO emission cuts),
- Decentralization of electricity production is in progress to reach remote areas.
Map presenting photovoltaic solar electricity potential in Europe (Fig. 1.) has been elaborated by the Joint Research Centre, Ispra. Good irradiation is crucial for high effectiveness of PV power installations. Thus, the intensity of irradiation and a territory is a natural factor influencing national policies of PV development and volume of investments it this technology. Irradiation on the European continent, presented on the map conditions shows exactly the potential PV power capacity in each NMS. Obviously southern exposure of Cyprus, Malta, Bulgaria, Romania and Slovenia represents a remarkable advantage in PV electricity output potential. However, in the long run, PV technology is cost-effective on all of the NMS' territories.

Fig. 1. PV potential in Europe.
European countries being the signatories of Kyoto protocol committed to reduce greenhouse gas emissions. To meet this obligation there is no other way but to increase the share of renewable energy sources in the total energy balance.
Many actions undertaken at the EU level help its member states to become more competitive and less polluting. Adopting in 2001 the RES Directive (Directive on Electricity Production from Renewable Energy Sources 2001/77/EC) created a basis for a future EU RES promotion framework. European Directive 2001/77/EC recommended an increase in the share of green electricity from 14% to 22 % of gross consumption by 2010. In March 2007 European Heads of States and Governments signed up new binding target to source 20% of the EU member states' energy needs from renewables by 2020.
The new Renewable Energy Directive replacing the existing measures has been adopted in December 2008. It is next highly important step towards low carbon economy. New RES Directive seems to be a historical piece of legislation as it pushes further RES power development on an unprecedented scale. Under provisions of the Directive each member state has a legally binding obligation to increase its share ofrenewablesby5.5% from 2005 levels, with the remaining increase calculated on the basis of gross domestic product (GDP) per capita. Total EU's renewables share is to rise from 8.5% of the bloc's energy mix today to 20%. By June 2010 each Member State must submit a National Renewable Action Plan (NRAP) detailing plans (indicative trajectory) to meet its 2020 targets. NRAPs are followed by progress reports presented every two years. If the “appropriate measures” to reach the targets are not undertaken, defaulting Member State is a subject to infringement proceedings initiated by the European Commission. Moreover EU addresses to its entire member states another requirement of "minimum levels for the use of energy from renewable sources in buildings". Thus, integrating PV in buildings is to be developed as every new construction project shall include state guidelines for renewable technologies installations.

Fig. 2. Targeted share of RES in final energy Consumption in 2020
Fig. 2. shows the initial and targeted by the Directive shares of RES in every NMS. Unfortunately there no biding obligation of the share of each RES sector, so most expensive (at the moment) technologies like PV may be excluded by some small Member States or Member States with a Iow GDR Although photovoltaic technology is currently in its early development and its share remains relatively small in the overall renewable electricity balance at present, photovoltaics has one of the highest potentials among renewable energies to become a major contributor in the fulfilment of the target in the mid to long term. Indeed it has a high cost reduction and competitiveness potential.
European Commission in cooperation with relative stakeholders' representatives undertake measures oriented at renewable energy sources development, especially in terms of RTD progress. The Seventh Framework Programme for Research and Technological Development as the EU main instrument for funding research, provides opportunities that seem crucial for further PV development in Europe.
In November2007, the European Commission put forward a European Strategie Energy Technology Plan (SET-plan), an agenda aiming at improving and speeding up the energy research and innovation in Europe. This new initiative was bom out of deficiency in the field of new technologies due to insufficient funding on both, private and public levels. Maintaining the status quo is perceived as inadequate with regard to challenges of climate change, energy supply and competitiveness faced by EU economy. The European Commission emphasized the pending need of technology breakthroughs in RTD, a prerequisite for lowering clean energy prices and low-carbon-energy industry development. One of key points of SET plan is to earmark more funds for the industry, especially in terms of RTD innovations. One of new priority initiatives is Solar Europe lnitiative oriented at large-scale demonstration of commercial readiness of PV and concentrated solar power. Solar Europe lnitiative aims also at reinforcing of European energy research capacities, networking through wide-scale programmes like European PV Technology Platform and ETAP and inereasing human and financial resources. One of such programmes, the Environmental Technologies Action Plan (ETAP) was set up in January 2004. ETAP is oriented at overcoming of financial and administrative barriers that hinder new technologies. ETAP emphasizes the importance of cost-effectiveness of environmental technologies considering it as a prerequisite for sustainable growth and development.
The Competitiveness and lnnovation Framework Programme (CIP) will be in operation from 2007 to 2013. CIP's main objective is to boost the competitiveness of European enterprises. lnnovation, finance and services are three areas in which the CIP will provide significant support. One of CIP's parts is the Intelligent Energy Europe (IEE) programme aiming at RES and energy efficiency development. The IEE programme earmarks millions Euros every year on projects in the supported areas and covers up to 75% of their costs. The IEE programme is managed by the Executive Agency for Competitiveness and lnnovation (EACI) on behalf of the European Commission.
World solar photovoltaic market installations reached a record high of 5.95 GWp in 2008, representing growth of 130% over the previous year. Europe accounted for 82% of world demand. The global PV market has been growing more than 40% per annum over the past five years. As one of the fastest growing industries, PV sector is expected to grow despite global financial crisis that affected all worlds' economies in 2008. This crisis turned out to be an opportunity for the entire RES sector. The USA with its new president Barrack Obama decided to highlight the importance of intensified renewable energy generation and include it in the recovery plan (the American Recovery and Reinvestment Act). From now on the US RES market will be stimulated by loan guarantees and tax credits.
Adopted in November 26th 2008 a European Economic Recovery Plan does not acknowledge the role of RES as one of the key solutions to recession. In this context only clean transport and energy efficiency have been considered as European priorities for the months to come. Nevertheless overall PV market condition should not deteriorate. Actually lowering of module prices may constitute a moderated push for the market demand. Optimistic trend forecasted for the coming years indicates such expansion of PV sector. Nowadays, global cumulative PV capacity reaches 10 GWp, half of this figure is provided by EU member states. Moreover, there is an industry sector prognosis on 12% of PV electric energy share in Europe's electricity supply by 2020.
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