Page 74 - Azerbaijan State University of Economics

E.E.Gasimzade: Influence of oil prices on innovation in renewable energy sector

Innovation is a broad category and defined as “the successful introduction into
an applied situation of means or ends that are new to that situation” (Mohr, 1969,
pp.112) [1].
Innovation is the remedy that can improve our life qualities, besides,
innovation decreases costs in many industries, and renewable energy belongs to this
group too. Innovation creates, endows wealth, comfort, reliability, quality.
If we look at cost of producing electricity from different resources, as shown
in the graph below, the levelised cost of electricity from utility-scale renewable
technologies has been decreased from 2010 to 2014. But, if we for example take
solar photovoltaic and compare it to fossil fuel energy costs for producing
electricity, we can see that, the solar energy costs more. So, new and more
innovation is required for better competitiveness.

Credit: RENEWABLE POWER GENERATION COSTS IN 2014; The International
Renewable Energy Agency (IRENA) [2].
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