Short Review of Solar Energy Markets and Policies for Smart Cities Development

Abstract

This paper presents a meticulous review of the solar energy markets and their instrumental role in driving the growth of smart cities. Drawing from extensive research, the review delves into urban metamorphoses spurred by the burgeoning growth of megacities, highlighting the significance of sociotechnical systems, evolved institutional practices, and energy material flows. The study identifies seven pivotal models for smart city energy governance, encompassing distributed energy resources, energy storage, microgrids, demand response, smart measuring systems, energy harvesting, and green technological innovations. A comparative analysis of urban developments in cities such as Singapore, Shanghai, and the greater Jakarta area reveals diverse trajectories in energy system evolution and business model shifts. The surging growth of solar energy, underpinned by technological breakthroughs, cost efficiencies, and robust governmental policies, is also explored. Although solar energy has been bolstered by a myriad of fiscal and regulatory incentives, it faces persistent challenges like technical impediments, financial barriers, and regulatory obstacles. The paper also introduces an innovative compound Real Options Approach (ROA) for appraising solar energy projects within smart cities, arguing its efficacy over the traditional Expected Net Present Value methods by recognizing managerial adaptability. In summation, this review accentuates the imperative of enduring policy support to amplify solar energy adoption worldwide, setting the stage for a sustainable smart city future.